The 2017 Reappraisal is a HOT topic in Nashville. Increasing home values are something to be excited about but the prospect of higher property taxes has many homeowners concerned. Here’s some information that might be helpful.
By state law, Tennessee counties are required to reappraise real property every four years. State law also requires that the reappraisal be “revenue neutral”. What does revenue neutral mean?
The Truth in Taxation Law (TCA 67-5-1701) prevents local governments from realizing a windfall in tax revenues because of a reappraisal. This state law requires that a Certified Tax Rate (CTR) be set after each mass reappraisal and further provides that the certified tax rate must not raise more revenues — except on new construction – than in the prior tax year.
In short, Metro can’t make more money because of the reappraisal (except for new construction) and must adjust the tax rate.
This means that:
- if your home’s value went up by LESS than 35%, you’ll probably see a net decrease in your property taxes.
- if your home’s value went up by MORE than 35%, you’ll probably see a net increase in your property taxes.
To see your 2017 reappraisal go to www.padctn.org
Click on the Real Property tab then Simple Search to search for your property record. Click on your property then scroll down. On the bottom left you’ll see Total Property Appraisal / Assessment. These are your 2017 numbers. You want the Total Appraisal Value which is the sum of the land value and the improvement value.
While you’re on this page, write down your assessed value, this will save you some math later.
Go back to the top of the same page and click on Historical Data. You’ll see Previous Sales and Previous Appraisals. Look at the row for 2013 and on the far right you’ll see the total appraisal for 2013.
With these numbers you can calculate the percentage increase from 2013 to 2017. Again, less than a 35% increase = your taxes will probably decrease. More than a 35% increase = your taxes will probably increase.
What will your new property taxes be? We won’t know until Metro Council adopts a new certified tax rate. The current tax rate is $4.516, but the adjusted tax rate is expected to drop to between $3.25 and $3.50 after the reappraisal. That would be the lowest since 1984, when it was $3.17.
Here’s the math – take your 2017 assessed value and divide by $100 then multiply by the certified tax rate.
Clear as mud? Call, text or email me with questions