As the Truth-In-Taxation notices are about to hit your mailboxes in the coming weeks we thought this was an ideal time to reach out to our customers with a brief reminder of the assessment cycle. The terms “assessment year” and “payable year” are often misunderstood because the property tax timeline spans a period of two years. In the first year, valuations and property tax classifications are set by the assessor as of the assessment date, Jan. 2. Assessment appeals, budgeting and the truth-in-taxation process are also completed throughout the second, third and fourth quarters of the same year. During the first quarter of the second year, property taxes are calculated and tax statements are mailed by the auditor. Tax payments are ultimately collected by the treasurer in the second and fourth quarters of the second year.
The market value used to calculate the proposed taxes payable in 2020 was established as of Jan. 2, 2019. It was based on statistical data compiled by the assessor from open market sales that occurred from Oct. 1, 2017 through Sept. 30, 2018.
The share and/or amount of tax reported on the 2020 proposed property tax notice may have changed from the actual 2019 payable property taxes because of one or more of the following:
1. The property’s estimated and/or taxable market value changed.
• Valuation changes due to market activity.
• New construction or demolition.
2. The estimated and/or taxable market values of other properties changed.
• New construction added value to the assessment roll.
• Price inflation or deflation affected the value of properties and size of the assessment roll.
• Property losses or damages brought on by accidents, disasters, or human acts caused value to be removed from the assessment roll.
3. The tax classification changed based upon the use of the property.
4. The taxing jurisdiction changed due to annexation or detachment.
5. Property tax laws covering specialized areas of the assessment adjusted the tax base.
• The homestead market value exclusion.
• Changes in the first tier valuation limit of agricultural homestead property.
• Class 2c Managed Forest classification.
6. The relevance of specific tax laws addressing the application or expiration of a value exclusion or deferment adjusted the tax base.
• Plat deferral expired.
• Removal of Green Acres or Rural Preseve valuation deferment . • A change in the taxable market value on homesteaded property owned by a military veteran and his/her spouse due to the approval of a value exclusion.
7. The agricultural homestead market value credit received from the state changed.
8. The state general property tax levy rate changed.
9. Voters approved a school, city, township or county referendum.
10. The county, city, township, school district and/or special taxing district’s budget/levy changed.
11. Federal or state mandated services changed.
12. Aid from the state or federal government changed.
Questions/Comments? Please contact the Assessor’s Office at (320) 679-6420.