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.
