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Frequently asked Questions Concerning
the Annual Revaluation
What is a revaluation?
Revaluation is the process of valuing all property at its full fair cash value.
Fair cash value is the price a willing buyer will pay and a willing seller
will accept. A revaluation is an update of all assessments in the city conducted
under the direction of the Board of Assessors. The Board of Assessors are state
- certified individuals, whose duties are to discover, list and value all real
and personal property in the city, in a uniform and equitable manner. The Board
of Assessors is not involved in the collection of property taxes.
Why is a revaluation necessary?
State law requires that all property in the city be assessed within a ten-
percent range of market value every three years. A revaluation is the most
equitable way to accomplish this.
Will all property values change?
Most likely, however, not all property values will change at the same rate.
Market value will have increased more for some neighborhoods and property
types than for others. Some neighborhoods and property types may have decreased
in value and others may have remained the same. One purpose of a revaluation
is to make sure that assessed values reflect the changes that have occurred
in the actual Real Estate Market.
Who will do the revaluation?
Cole, Layer & Trumble have been awarded the contract to do the revaluation.
They have many years of experience in property assessment and are familiar
with the marketplace in the city. The Board of Assessors and their office staff
will also be utilized in the revaluation.
Is it necessary that you view
the inside of my property?
To make a proper assessment of a building, it is desirable that an assessor
sees the inside as well as the outside of the property. The law requires that
property be valued from an actual view or the best information available. We
will be performing a data quality control study on our existing information.
If we are unable to enter your property, we will still review your assessment
based on existing records and sales of properties similar to yours.
What if I refuse to let assessment
personnel in my property?
All assessing staff will have an identification card with their picture on
it. Our phone number is 394-2205 if you need verification. To assure accurate
assessment, it is to your advantage to allow the assessor inside your property
when the inspection is required. By denying an inspection, you may lose some
rights if you feel the need to appeal your assessment.
What is market value?
State law requires that your property be assessed at market value. Market value
is defined as the amount a typical, well-informed purchaser would be willing
to pay for a property. For a sale to be a market value (arm's-length) sale,
the seller and buyer must be unrelated, the seller must be willing (but not
under pressure) to sell, the property must be on the market for a reasonable
length of time, the payment must be in cash, or its equivalent, and the financing
must be typical for that type of property.
What if there hasn't been a
recent arm's-length sale of my property?
The next best evidence is arm's-length sales of reasonably comparable properties.
These are properties similar to yours in location, age, style, condition, and
other features that affect market value, such as the amount of living space
and size of garage etc.
What if there are no reasonably
comparable sales?
We will then consider all other factors that may affect the market value of
your property. The cost to replace your building(s), less any depreciation,
plus the value of the land could be used to estimate market value. For rental
properties, the income and expenses could be considered.
I have recently built my home;
will the actual construction costs be
considered?
Yes, however, your construction cost is a historical figure that may or may
not reflect the actual current market value of your property. It is only one
of the elements that will be considered.
What will happen to my assessment
if I improve my property?
Generally speaking, improvements that increase the market value of a property
will increase the assessment. The following examples are typical items that
may increase the assessed value of your property.
> Added rooms or garage
> Substantial modernization of kitchen or baths
> Central air-conditioning
> Fireplaces
> Extensive remodeling
Will my assessment go up if
I repair my property?
Normal maintenance will help retain the equity of your property, but generally
will not affect your assessment.
How can my assessment change
when I haven't done anything to my property?
General economic conditions such as interest rates, inflation rates, and changes
in the tax laws will influence the value of real estate. As property values
change in the marketplace, those changes must be reflected on the assessment
roll.
Do all assessments change at
the same rate?
There are differences between individual properties and between individual
properties and between neighborhoods. In one area, the sales may indicate a
substantial increase in value in a given year. In another neighborhood, there
may be no change, or even a decrease in property values.
Different types of properties within the same neighborhood may also show different
value changes. For example, one-story houses may be more in demand than two
-story houses or vice versa. Older homes in the same area may be rising in
value more slowly than newer homes.
Among the numerous factors to be considered that will cause values to differ
are location, condition, size, quality, number of baths, a finished basement,
garages, and many others.
Will the person who inspects
my property be able to tell me my new
assessment?
No. If an inspection is necessary of your property, we have to analyze all
of the information we gathered before placing a value on your property. We
will then further review this information to ensure that your assessment corresponds
fairly to the assessments of other properties.
Will I be notified if there
is a change in my assessment?
After the Department of Revenue reviews the new values, there will be a public
review period. This time will be advertised in the newspaper and on the local
cable TV channels.
What if I don't agree with my
assessment?
Talk with an assessor. During the informal public review period you can learn
how your assessment was made, what factors were considered, and what type of
records we have on your property.
What if, after the bill goes
out, I still disagree with the assessment?
You will need to file an abatement application with the Assessing Department
within thirty days of the issuance of the tax bill. The Board of Assessors
has three months in which to act on your application. They will notify you
on an approved Department of Revenue form of their decision within that time.
What evidence do I need to present
to the Board of Assessors?
State law puts the burden of proof on the property owner to show that the assessment
is incorrect. Stating that property taxes are too high is not relevant. You
should establish in your mind what you think your property is worth.
The best evidence that could be considered would be a recent sale price of
your property. The next best evidence would be recent sales prices of properties
that are similar to yours. The closer in similarity and proximity, the better
the evidence.
Another type of evidence that could be considered would be a recent appraisal
of your property.
How will my taxes change as
a result of the new assessment?
Although the value of your property affects your share of taxes, the actual
amount you pay is determined by the budget needs of the city. These will decide
what services will be provided in the coming year and how much they will need
to provide these services. Once this decision is made, a tax rate is adopted
that will generate the needed dollars. Your property taxes are then determined
by multiplying the tax rate by your assessment. Tax Rate X Assessed Value =
Taxes.
If the assessed value goes up,
will the city be able to raise more tax
money?
No, under proposition 21/2, the city cannot raise any more tax money than is
allowed by law.
What will happen to the tax
rate?
The law limits the amount a City or Town may Tax. When the assessed value goes
up, the tax rate generally goes down.
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