What is the difference between Market Value, Assessed Value and Taxable Value?
Market Value - is what the Property Appraiser estimates your property value to be as of January 1, considering costs of sale. One of the methods used to value property is the comparable sales approach. Using this method, we find properties similar to yours which have recently sold within your neighborhood. We compare the selling prices and adjust for differences between the properties such as living area, quality of construction and year built to arrive at an indicated value.
Assessed Value – The assessed value is the value of property after any assessment reductions, limitations, or caps have been applied. Furthermore, the assessed value is an administrative assessment created by the Legislature and is not directly related to market value. Homestead and non-homestead properties may have an assessed value that is lower than market value due to the Save Our Homes cap, or the 10% non-homestead cap.
Taxable Value – The taxable value equals the assessed value minus exemptions. Like the assessed value, it is not directly related to market value. The taxable value is half of the formula used to determine ad valorem property taxes; the other half if the millage rate levied by taxing authorities (taxable value x millage rate = tax levied).
I have not received my Notice of Proposed Property Taxes yet?
If you purchased your property after mid-July, the notice may have been mailed to the previous owner. Trim notices can be obtained on our website. However, if it is not a recent sale, call our office so we can verify or correct the mailing address in our records.
Why do I pay more taxes than my next door neighbor when we have the same house?
The "Save Our Homes" (SOH) amendment prevents homestead property owners from being taxed out of their homes during a period when home sale prices are rapidly increasing. This is accomplished by limiting the amount your assessed value can increase. Accumulation of "non-taxed" assessed values can cause this disparity. Your neighbor has enjoyed the benefit of an increasing "capped" differential over time, whereas, you just purchased your home. Once you file for your homestead exemption, your assessed value will be subject to this same cap.
I disagree with my property value or exemptions. What are my next steps?
We welcome the opportunity to conduct an informal review. Our professional, knowledgeable team will answer your questions and find the information you need. If we are unable to resolve the matter, you may file a petition with the Value Adjustment Board. There is a non-refundable $15 filing fee. Please see the petition filing deadline shown on your Notice of Proposed Property Taxes. Petitions are available at the Property Appraiser’s Office and can be downloaded from our website.
Why is January 1st an important date?
We are required by law to reassess property values every year at market value (considering allowable costs of sale) based on conditions as of January 1st of the tax year.
We are prohibited by law from relying on sales that occur after January 1st assessment date.
Property sales that occur after the official assessment date of January 1, 2022 will be considered for the 2023 tax roll.
Can I lose my agricultural classification if I conduct agritourism activities in the buildings on my property?
An agritourism activity does not include buildings primarily used to accommodate the general public. In order to maintain agricultural classification on the land beneath the buildings, they must be used as an integral part of the agricultural operation. To determine if your buildings would be approved for the agricultural classification, visit our online agricultural questionnaire here.
How do I avoid losing my homestead exemption?
Your homestead may be affected by any of the following actions:
- Add someone to your deed
- Put property into a trust
- Rent your property
- Change your marital status
- Change your mailing address
- Please contact our Office to learn more.
Do I have to live in my home for 6 months to be eligible for homestead exemption?
There is no particular amount of time you have to be physically present on the property to qualify for homestead exemption. However, your homestead property must be considered your primary residence. This means that your official identification documents must reflect your homestead property address.