Did My Property Taxes Just Go Up??
Did My Property Taxes Just Go Up?
NOTICE OF APPRAISAL
If you own a property in Knox County, TN then you most likely received a letter in the mail from the Knox County Property Assessor. Within that envelope is an ominous yellow letter with the title NOTICE OF APPRAISAL. Upon further reading you will see the previous appraised value and the current appraised value, which is probably considerably more.
If you have owned your home for a while you may be alarmed at the new appraised value. Chances are it has gone up significantly in the last four years, which is how often the Knox County Property Assessor does a county wide reassessment. If you have been listening to the news you know home prices have shot up to record highs so this may not be a complete surprise but the average increase in Knox County was 40%.
So Does This Mean My Property Taxes Just Went Up?
Short answer is no, it does not mean that. Matter of fact your property taxes could go down.
According to Tennessee state law, the amount of total tax revenue collected by a county (via property tax) must remain the same after a reappraisal, even if the combined value of all property in the county increased following the reappraisal. This means that when appraised values go up, state law requires the county to lower its tax rate so it cannot generate additional tax revenue simply due to reappraisal.
However, while the county cannot generate any more tax revenue due to this process, reappraisal can and does affect the total amount of taxes owed by individual property owners. Per the property assessor's office, the average appraisal value rose 40% – thus the tax rate will be decreased by 40% to conform with state law.
There are basically three scenarios for how this process could impact the dollar amount of taxes owed by an individual property owner:
- If your individual property value increased by exactly 40%, the total dollar amount of taxes you pay will be able the same.
- If your individual property value increased by less than 40%, the total dollar amount of taxes you pay will slightly decrease.
- If your individual property value increased by more than 40%, the total dollar amount of taxes you pay slightly increase.
It is also important to note that the changes in the total dollar amount of taxes you must pay as a result of reappraisal are generally marginal. For example, even if your individual property doubles (+100%) in appraised value, your taxes will not double since the tax rate will be adjusted down.