What About My Property's Value?
We anticipate most properties in Washington County will see an increase in property values. An increase in your assessment historically has meant an increase in your property taxes. However, since the passage of Amendment 79 in November of 2000 it provides four very important protections for property owners.
1. Homestead tax credit: a credit of up to $375.00 on your principle place of residence.
2. Your principle place of residence can only increase a maximum of 5% annually until it reaches its full assessed value.
3. Assessments are frozen on the principal place of residence for property owners 65+ years old or those deemed 100% disabled by social security standards.
4. Assessments on all other properties can only increase a maximum of 10% annually until it reaches its full assessed value.
It should be noted however, that even though a property owner’s assessment has been either “frozen” or “capped” by Amendment 79, any previously “non-assessed” property (new construction, additions, recently discovered, etc.) will be assessed at 20%
To better understand how the 5% cap rate is applied to your properties value you first need to understand the difference between: Market Value, Assessed Value and Taxable Value
Market Value – The most probable price a property would bring in a competitive and open market.
Assessed Value – is always 20% of the market value.
Taxable Value – the amount you actually pay taxes on.
Market Value – The most probable price a property would bring in a competitive and open market.
Assessed Value – is always 20% of the market value.
Taxable Value – the amount you actually pay taxes on.
EXAMPLE:
BREAKDOWN:
2015 market value - $200,000 / assessed value $40,000 / millage rate .055 / $40,000 x .055 = $2,200 $2,200 - $375.00 homestead credit = $1,825 2015 tax bill
2020 reappraised market value - $256,000 / new assessed value $51,200 / millage rate .055 / 2015 taxable assessed value $40,000 x 5% = $2,000 + $40,000 = $42,000 new 2020 taxable value $42,000 x .055 = $2,310.00 - $375 homestead credit = $1,935.00 2020 tax bill
2020 reappraised market value - $256,000 / new assessed value $51,200 / millage rate .055 / 2015 taxable assessed value $40,000 x 5% = $2,000 + $40,000 = $42,000 new 2020 taxable value $42,000 x .055 = $2,310.00 - $375 homestead credit = $1,935.00 2020 tax bill