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 are added as new taxable value.

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WHY DID MY ASSESSMENT VALUE INCREASE?

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Assessed Values are 50% of your "True Cash Value" or what is estimated to be "Market Value", which is what is estimated to be the most probable selling price if the property were to be sold on the market at the time of Assessment.  Assessed Values do not affect Taxable Value, unless the property had a Transfer of Ownership (not qualified for uncapping exemption), or new value or previously omitted property added to the Assessment Roll.  Assessed Values will fluctuate with the real estate market, increased building costs and inflation based and are adjusted annually based on a market analysis.