On April 28th, the last of the property assessors letters went out to homeowners letting them know what their property was worth. You may have heard that the average increase in value was 37%. But did you know that one area had a 93% increase in value?
Not a Tax Assessment
One thing the property assessor really wants you to know is that this is a property appraisal not a tax assessment. Their job is to look at all the property in Davidson County and determine their value. They do not determine how much your taxes are. The Mayor and the Metro Council determine tax rates. Except that during an assessment year, the city cannot benefit from the re-appraisals. The amount of taxes that the city will get based on the re-appraisal remains steady.
Woo Hoo, Our Tax Rate Went Down
The good new is that we are growing. So there are more properties on the tax rolls. So all those properties where two or more houses were built on a lot, or an apartment or commercial building went up where none existed, added to our tax base. And they added a lot. So the effective tax rate went from 4.51 to 3.16. This tax rate is the lowest in Nashville in 50 years, much lower than Memphis and Chattanooga. So our tax rate went down and our values went up. All in all that sounds like a good thing.
Your Taxes May Go Up, Down or Not Change
It may not feel like a good thing when we get our new tax bill if we live in one of the areas that have appreciated over 37%. The purpose of the re-appraisal is to make sure that the property tax is evenly distributed over the county based on the properties value. So some of us may get an increase, some none at all, and some will see their taxes go down. Now I have 2 houses in the area that increased by 97%. Good news for me as I don’t hold my properties long and I will benefit greatly when I sell. And a good indicator that I know how to pick a property!
The City Helps Those In Need
It’s not good news for everyone. So the city has several programs that cap or reduce homeowner’s property taxes if they are disabled, elderly or veterans and unable to pay their full tax bill. The deadline to apply for those has passed but they property assessor’s office worked hard throughout the fall and spring to get the word out to those eligible for the assistance.
Check Out The Comps in Your Area
Now when I looked at the appraisals on the properties I own, which I could do by going to the property assessor’s website, http://www.padctn.org, I was not surprised by their valuations. I have access to comparable data all the time and had a good sense of what my properties are worth. If you’re surprised, you can also go to the website and look at properties that have sold in your neighborhood and check out the comparables. Search by your last name, select your property, and then click the red compare button. You may need to narrow down the time frame to 2017 to get the most recent sales.
You Can Protest
If you totally disagree with the appraisal even after looking at the comps you can request a review. The best way to do this is on the website. This page gives you the process, http://www.padctn.org/review-appeal/help-filing-informal-reviews. One of my properties was higher than the appraisal I had done on it in October 2016 so I first thought about a review but after checking out the comps on the website I realized the value was even a little lower than I would sell it for today. Even in 6 months the value had increased quite a bit.
Leverage Your Asset
Here is the heat map that shows the changes in value by area. If you’re excited about the your property valuing going up then I hope you’re in one of the red areas. If you hate the thought of paying more taxes, even a little more, I hope you’re in the blue area. And if you want to live in an area where one the biggest investments of your life is appreciating quickly give me a call. I can help you find a great house in the next red hot area. Or if you want to take advantage of the increased value in your home by selling now, give me call. There are tax advantages when you sell your personal property.
Please pass this along to anyone you think would benefit. See you next month!