"Dear Observer"---:
I am hoping you will publish an article about the recent property tax bills for the year 2008. Upon reading my bill I noticed a couple of issues with it. The first issue was the most concerning. As you and the rest of country know (except those in Evansville City government) housing values across the country are on the decline. So my question is why oh why would some one any believe that property in this city is worth more today than it was last year. Not to mention to the tune of 10k more... there have been no improvements to the property but yet my tax bill was increased significantly in a market that value is steadily decreasing. Sounds like fancy book keeping to me. On to my next issue, the mil rate, .024 does any one know what it was last year? I thought it was .021, was there yet another increase?
I would love to see a article with the above questions answered.
Thanks
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I’ll try to answer these questions, Observer. Others can chime in if they disagree with me or want to refine my answers.
ReplyDeleteThe property tax bill we just received was based on your property’s assessed value as of January 1, 2008. Any increase in the value of your property shown on this tax bill would have been between January 1, 2007, and January 1, 2008, and thus would not reflect what happened to house values during 2008. However, if you are like most people, your assessed value was the same on January 1, 2008, as it was on January 1, 2007, because there was no city-wide reassessment. If your assessed value did not increase, then the property tax increase you see had nothing to do with any change in value of your house.
Your tax bill probably shows that your estimated fair market value increased from January 1, 2007, to January 1, 2008, but that has no significant impact on your property taxes. The “net assessed value rate” (also known as the mill rate) is applied to your property’s assessed value to calculate your property tax, not to the estimated fair market value.
If your assessed value did not change, your property tax increased this year because the local governments—the technical college district, school district, county, and city—increased your property taxes. The amount by which each of these units increased your property taxes this year is listed on the right-hand side of the bill. On my bill, it shows the technical college district increased my property tax 5.3%, the school district increased it by 12.2%, the county increased it 3.0%, and the city increased it 4.4%. To the best of my knowledge, this is the first time the City of Evansville has increased its mill rate by more than a tiny amount in many years—since back before I was the city administrator.
On last year’s property tax bill, the net assessed value rate was .0227 (with rounding). On this year’s property tax bill, it is .0243 (with rounding). That resulted in a property tax increase (before credits) of 7.0%. Again, this increase was because the local governments decided they needed to increase your property taxes.
Bill Connors
Former Evansville City Administrator
The increase you note in the school portion was what got my attention, and may go back to your point many years ago about the "back loaded bonds" that ensure that each year even though no increase in anything else, the debt burden will rise to the highest in 2021.
ReplyDeleteI do not see the 10% as a sustainable rate. A little explanation of the school portion would be helpful.