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TAXATION
- VALUATION PROCESS
WHAT
CAUSES PROPERTY VALUES TO CHANGE?
Many
things can cause the market value of your property to change.
The most obvious cause would be a change in the property itself.
The addition of a bedroom, garage or swimming pool or the destruction
or loss of property caused by flood or fire would have an immediate
impact on your property value. A change in value caused
by either of these events may be mitigated in the taxpayers' favor
by applying for an exemption
of refund.
The
most frequent cause of a change in the value is a change in the
marketplace.
If
a town's major industry leaves, property values can collapse.
As decaying neighborhoods with good housing stock are discovered
by young home buyers, prices gradually rise, and then may soar
as the neighborhood becomes fashionable.
A
shortage of detached houses in a desirable city neighborhood can
send prices up. In a recession, larger homes may stay on
the market longer and sell for less, but more affordable homes
may be in demand, so their prices rise. In a stable neighborhood,
with no extraordinary pressure from the market, inflation may
cause increases or decreases in property value.
Four basic economic factors affect property value:
- Physical (including Environmental
andLocational) Factors.
- Economic Factors (including
jobs, income, lending, foreclosures, etc)
- Governmental (including Political
and Legal) Factors
- Social Factors (including
fads, crime and population characteristics)
The factors
above are used in neighborhood analysis, which is an essential
component in the valuation of real property. To most
real estate and appraisal professionals, the three most important
physical factors affecting market value are:
- LOCATION
- LOCATION
- LOCATION
All other
factors are either less important or are considered only according
to their relationship to location.
VALUATION
Buyers
and sellers in the market CREATE VALUE
The Assessor's
office studies the market and collects information about properties
to ESTIMATE VALUE.
All appraisals,
whether a mass appraisal or an individual appraisal, are the professional
opinion of the appraiser or appraisers who made
the appraisal.
The Assessor's
office, rather than creating market values, merely reflects the
market value as of a point in time, i.e. January 1 of each year.
How
is my property appraised?
TAXATION
- Taxpayers
DEMAND SERVICES.
- Taxing
authorities REQUIRE MONEY to provide those
services.
- Taxing
authorities such as school districts, park districts and city
councils LEVY TAXES to cover
their budget.
The
ASSESSOR then:
- DETERMINES
THE VALUE of all taxable property
- CALCULATES
THE TAX LIMITS for each district and the TOTAL
TAX LEVY to whcih they are entitled, cutting any that
exceed the allowable limits.
- CALCULATES
THE TAX RATE necessary to collect the taxes to pay
for the services demanded by the taxpayers. (Total TAXES
LEVIED ÷
Total TAXABLE VALUE)
- CALCULATES
THE TAX for
each individual (TAX RATE X VALUE
of the individual's property)
The TREASURER
then:
- SENDS
THE TAX BILL to
each taxpayer,
- COLLECTS TAXES
from each taxpayer, and
- DELIVERS TAX TO EACH DISTRICT
based upon their proportionate share of each tax bill collected..
If
you are concerned about rising taxes:
- Attend budget hearings
- Call or write the taxing authorities
- Decide whether you are willing to do without
services to keep taxes low
- Work for efficiency in government
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Island County Assessor
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