FREQUENTLY ASKED QUESTIONS

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TERMINOLOGY IMPORTANT TO KNOW

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ASSESSED VALUES (AV) =  Represents 50% of the estimated current True Cash Value (Market Value) of the property 

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STATE EQUALIZED VALUE (S.E.V.) = Prior to the voters passing Proposal A in 1994, the S.E.V. is the value that had been used to calculate property taxes.  After voters passed Proposal A, limiting property tax rate growth to the rate of inflation or 5%,  

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TAXABLE VALUES (TV) = The value that your property taxes are calculated from based on levied mills.  

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TRUE CASH VALUE (TCV) = The value that represents the estimated market value.  The True Cash Value is a combination of the estimated land value and cost of improvements new less depreciation.  True Cash Values are estimated using the Mass Appraisal process.  The Mass Appraisal Process involves a sales study of arms-length transactions of properties that have sold within the previous 2 years (Studies are from April 1-March 31 for the previous 2 years).

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QUESTION/ANSWERS

 

WHY DID MY TAXABLE VALUE INCREASE?  

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All properties are subject to the following increase annually:

1.  Taxable Values increase annually by the rate of inflation or 5%, whichever is the lesser of the two.  Taxable Values are 

    calculated using the following formula:  Prior Year Taxable Value - losses x rate of inflation + additions.  

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If a taxable value has increased by more than the rate of inflation one or both of the following may apply:

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2.  The property had a transfer of ownership in the previous tax year.

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3.  The property had new or improvements previously not described or missing on the tax roll.  50% of the estimated true

     cash value of the improvements added to the property tax record is added as new taxable value.

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WHY DID MY ASSESSED VALUE INCREASE?

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Assessed Values increase or decrease annually according to real estate market sales,  building costs, and inflation. 

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Assessed Values represent an estimated 50% of your property's "True Cash Value" or "Market Value".   True Cash Value is the estimated probable selling price (Market Value) if the property were to be sold on the market at the time of Assessment. 

 

Assessed Value increases do not increase Taxable Values unless the property had a Transfer of Ownership that did not qualify for a taxable value uncapping exemption, or unless the property had new value or previously omitted property, which was not previously described on the assessment roll.