How does the Assessor value your property?
The Assessor first reviews all real estate to be assessed for any changes. He then values it. To do this, he constantly searches for significant facts to accumulate and analyze in order to estimate fair market value for your property.
What is fair market value?
Finding the market value of your real estate involves discovering the price most people would pay for it in its present condition as of the assessment date. This exercise is completed for all properties regardless of their size. Because the market value of almost everything changes from one year to the next, the procedure is repeated each year.
How do you find market value?
To find the value of any piece of real estate, the Assessor must first know what properties similar to it are selling for in the county, what it would cost today to replace it, how much it takes to operate and keep it in repair, what rent it may earn. Other factors affecting value include employment statistics, economic development, and current interest rates. Using these facts, the assessor can now go about finding the property’s value. For tax purposes, the most common approach is to estimate the amount of money it would take to replace your property with one similar. In the case of a property that is not new, depreciation must be estimated and used to reduce the cost estimate. As market values change, the assessed value must also change. For instance, if your property were improved, the assessed value would rise. However, should your property be damaged by fire, for example, the assessment would be reduced. The appraiser has not created value; he only has the responsibility to discover it as it exists and appraise your property accordingly. In the end, people make value by their transactions in the marketplace as they buy and sell property.
How do I report improvements to my Real Estate?
All individuals, contractors or any person who erects, adds to, enlarges, moves, alters, converts, remodels or extends any building or structure whereby the value is increased by more than $1,000.00 on or before July Ist of any year, must notify the assessor within sixty days from the date the work is commenced; mines, mills, factories, or other industrial establishments on or before June 15. If a building permit has been obtained this will be sufficient notice under this section. Any person who shall violate the provisions of this section shall be guilty of misdemeanor and subject to fine.
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