Macon County Revaluation Info 2011

REVALUATION WHEN & WHY?
LAST BEING 2007
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AND

STATE MANDATED BEFORE JANUARY 01, 2015

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REVALUATIONS ARE DONE TO EQUALIZE VALUE NOT TO GAIN NEW REVENUE
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PROPERTIES INCREASE OR DECREASE AT DIFFERENT RATES AT DIFFERENT TIMES

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Franklin MLS Sales
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500 1100

2006 2007 2008 2009 2010

400

500

800

SALES ARE OFF 50-65% OF NORMAL VOLUME

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2011 MLS SALES
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54% OF SALES ARE FORECLOSURES

OR
SALES BY MACON COUNTY AGENTS IN SURROUNDING COUNTIES

46% COULD BE QUALIFIED SALES OR SHORT SALES

COMMERCIAL SALES ARE NEAR NONEXISTENT

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Improved Residential Properties
25,000 20,000 $299,000< $300,000> Total 15,000 10,000 5,000 0 # of Properties 3,300 19,000

22,300

Improved Residential Value Less "000"
$300,000> $299,000< Total 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0
al ue

4,140,022 1,978,695 2,161,327

To ta

lV

BUDGET NEEDS IN YEAR BEFORE AND AFTER REASSESSMENT

$ 26,102,0000 TAX REVENUE
OLD ASSESSED VALUE $9.3 BILLION NEW ASSESSED VALUE ESTIMATE $7.3 BILLION REVENUE NEUTRAL TAX RATE $26,102,000/7,300,000,000= .0036

OLD VALUES OLD RATE vs. NEW VALUES NEW RATE
2011 UTILITY VALUES $115,000,000x.00279=$320,850

2013 UTILITY VALUES $115,000,000x.0036=$414,000 29% INCREASE

2011 HONDA ACCORD TAX $22,290x.00279=$62.18

2013 HONDA TAX $20,000x.0036=$72.00 16% INCREASE

USE VALUE ASSESSMENT COMPARED TO TAX RATES
2011 MARKET VALUE
2011 USE VALUE

$355,080
$ 32,200

2011 TAXES 32,200x.00279= $ 89.84

2013 MARKET VALUE 2013 USE VALUE

$205,240 $ 32,200

2013 TAXES 32,200x.0036= $115.92
29% TAX INCREASE
8/31/2011 copyright 2006 Free template from brainybetty.com ALL RIGHTS RESERVED. 2

HOUSE EXAMPLES
2007 VALUE $119,810 2011 TAXES $334.27

2007 VALUE $1,448,200
2013 VALUE 1,200,000

2011 TAXES $4,040.78
2013 TAXES $4,320 +6.9%

2013 VALUE $118,210

2013 TAXES $425.56 +27.3%

2007 VALUE $337,990 2013 VALUE $300,830

2011 TAXES $942.99 2013 TAXES $1,082.99 +14.8%

HOUSE EXAMPLES
EXAMPLE A 2007 VALUE $1,034,460 EXAMPLE B 2007 VALUE $560,230 2011 TAXES $1,563.04 2013 VALUE $350,000 2013 TAXES $1,260,000 -24%

2011 TAXES $2,886.14
2013 VALUE $733,000

2013 TAXES $2638.80 -9.3%

PROS & CONS OF 2013 REVALUATION
PROS EQUALIZATION OF VALUES VALUES ADJUSTED TO MARKET CONDITIONS KEEP REVALUATION CYCLES SHORT KEEP POLITICAL OPINIONS OUT OF ASSESSMENT CONS LOW SALES VOLUME UNQUALIFIED SALES AT 54% ALL PROPERTY TYPES DON’T HAVE SALES COMMERCIAL SALES NEAR NONEXISISTENT SCHEDULE VALUES HARD TO DEVELOP THE PROCESS WOULD CREATE MORE QUESTIONS THAN ANSWERS TAXES WOULD RISE IN ALL CLASSES OF PROPERTIES AT DIFFERENT RATES APPEAL PROCESS WOULD BE PROLONGED

PROS & CONS OF 2015 REVALUATION
PROS TIME FOR ECONOMY AND SALES TO RECOVER MORE PROPERTY TYPES SELLING SCHEDULE OF VALUES WOULD BE BETTER TO DEFEND COUNTY IS MANDATED TO DO REVALUATION IN 2015 EXCEPT FOR LAND ACREAGE, LOTS AND EXCLUSIVE 2ND HOMES REVALUATION IS NOT NEEDED UNTIL 2015 ALL PROPERTY TAXES WOULD BE STABLE UNTIL 2015 CONS ECONOMY WOULD STAY FLAT WITH LITTLE CHANGE IN SALES SPECULATIVE LAND AND EXCLUSIVE HOMES WOULD STAY AT CURRENT VALUES COUNTY WOULD BE BACK ON EIGHT YEAR REVALUATION CYCLE AND WOULD THEN NEED TO EXAMINE THAT IN THE FUTURE