Each year all taxable property must be assessed at 100% of current market value less statutory exemptions. The county assessor must estimate how much a typical buyer would pay for the property on Jan. 1. To do this the assessor generally uses sales prices from properties in the county to develop guidelines for the assessment of each property. The assessor considers the features that influence what a buyer would pay for property. Some of these features are size, location, quality, age, and condition. For an example of the calculation of taxes, see question PTOT - 5.

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For property tax assessment purposes, the term improvement refers to any buildings, paving, or other structures that add value to the land, regardless of when they were constructed. Improvement does not refer to remodeling, renovating, or upgrading.

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All nonexempt property, including personal property, is subject to property taxation. Any nonexempt furniture, fixtures, equipment, or machinery used in a business or to generate income is subject to assessment and property taxation. Contact your county assessor for specific exemptions and the form to declare your personal property.

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Your county assessor maintains a file of information about your property. If you have questions about the assessment, contact your county assessor.

Contact your county clerk to file an appeal with the board of equalization. (The board of county commissioners meets as the board of equalization.) Most appeals must be filed by the fourth Monday in June. For most assessments, the board of equalization meets to hear appeals between the fourth Monday in June and the second Monday in July.

If you disagree with a decision from the board of equalization, you may appeal that decision within 30 days to the state board of tax appeals or to the district court. Your county clerk has information to help you file such an appeal.

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The amount of property tax is based on the budget needs of the taxing districts (local governmental units like the county, city, school district, fire district, etc.) where the property is located. Officials for each taxing district decide the annual budget needed to provide services. The part of the approved budget to be funded by property taxes is divided by the total applicable taxable value of all properties within the district. This same calculation is made for each taxing district where your property is located and the resulting tax rate for each district is added together. The total property tax rate is multiplied by 100% of the market value of your property less statutory exemptions to calculate the taxes you owe.

Example:
Selected city’s budget funded by property taxes is $8,960,868.00. The total taxable value of all property within the selected city is $1,232,686,220.00.
$8,960,868 ÷ $1,232,686,220 = .00727 city tax rate

Each applicable taxing district’s tax rate is calculated using the same procedure and the tax rates are totaled to equal a total property tax rate of .0167.

100% of House Market Value  =   $96,000
100% of Lot Market Value       =   $22,000
Less Homeowner’s Exemption  = <$59,000 >
         (50% of $118,000, assuming eligibility.)
Total Taxable Value                  =   $59,000

$59,000 x .0167 = $986 (Total property taxes owed to all taxing districts where the property is located.)

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No. The law requires current market value as of Jan. 1 each year. This may mean a large or a small decrease or increase in value from the previous year. The market value of all properties in your neighborhood may have increased or decreased from the previous year, or the assessor may have discovered better information resulting in the decrease or increase in the estimated value of your property.

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The law does not limit the increase in the property taxes on an individual property but does limit the amount taxing districts (local governmental units) can increase the generally nonvoter approved revenue to be received from property taxes. Each taxing district can increase the generally nonvoter approved property tax revenue it will receive by 3 percent plus a growth factor for new construction and annexation. If the rate of increase in property tax revenue is less than the rate of increase in total taxable value of all property within the taxing district, the property tax rate will decrease. However, property taxes may increase on individual properties if the rate of change in value of that specific property exceeds the rate of change in value of all properties. Additionally, voter-approved issues like bonds and overrides may exceed the limitation.

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All property types are assessed at 100 percent of current market value, less statutory exemptions. Generally, property types within the boundaries of the same taxing district have the same property tax rate. If the property tax rate is different, with a few exceptions, the property is within the boundaries of a different taxing district.

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Yes, two different types of tax relief are available to homeowners.

The first is the homeowner’s exemption. Each owner-occupied primary residence (house or manufactured home) is eligible for a homeowner’s exemption. However, you must own and occupy the home prior to April 15, and you must submit an application to your county assessor’s office by April 16. Once you apply and qualify for this exemption, you do not have to reapply unless you move. This exempts 50 percent of the value of the home up to a maximum exemption of $89,325 in value.

The second is the property tax reduction benefit. However, fewer homeowners qualify for this tax relief because in addition to having to own and occupy the home as your primary residence, you must meet income requirements and must be either age 65 or older, a widow(er), blind, former POW, fatherless or motherless minor, or a qualifying disabled person. Unlike the homeowner’s exemption, you must file an application with the county assessor between Jan. 1 and April 15 each year even when you haven’t moved. Also, see questions PTR-1, PTR-2, PTR-3, PTR-4, and PTR-5 for more answers relating to the property tax reduction benefit.

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If you buy and occupy property after Jan. 1 that has not previously been occupied, you are required to pay the occupancy tax. The amount of the occupancy tax is the value of the building(s) prorated for the part of the year after first occupancy, multiplied by the property tax rate.

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