Can the Board of Supervisors assess my property at 35% below it appraised value?
Full Question:
Answer:
I am not entirely clear on the nature of your question. Property taxes are based on Assessed Values. Assessed Values must reflect not more than 50% of the Market Value of a property. Taxable Value is the lesser of Assessed Value or Capped Value. Millages are levied against to determine a property’s taxes. Proposal A was passed in 1994, which limited any increases in Taxable Value to 5% or the rate of inflation (consumer price index, CPI; 4.4% or 1.044 multiplier for 2009) whichever is less.
The calculation of the 2009 Capped Value becomes: (2008 Taxable Value
minus losses) times the CPI (1.044), plus new. Since Assessed Value still represents 50% of the Market Value of a property, Assessments may increase (or decrease) by whatever percentage is necessary to maintain the 50% level. Taxable Value, however, has been ‘capped’ by the CPI or 5%, since 1994.
If you should appeal your Assessment to the local Board of Review, you will have to be
sure that your property is worth less than two (2) times your Taxable Value, in order to see a reduction in taxes.
