Property Tax Increase?
|Every four years, Loudon County property owners are faced with what
some of us have come to fear, property reappraisals. This is the process
whereby the state takes all kinds of information pertaining to our
county sticks it in a computer and comes up with new values for our
property. Based on this information, the county will have a new
certified tax rate.
For the first time, in my memory at least, many Loudon County property owners will see their property values go down after the most recent reappraisals. Historically, reappraisals result in most property values increasing but since the Obama economic down turn over the last few years, that wont be the case this time.
The law does not allow local governments to collect additional taxes on a reappraisal. That means when property values go up, tax rates must go down. So conversely, when property values go down, the property tax rate must go up to compensate for the lower property values.
Right now, it looks like the county property tax rate will be going up about ten cents. That would be from $1.79 per $100 of assessed value to $1.89 per $100 of assessed value. It's a little complicated but if your property value went down the tax rate will go up and you should still be paying about the same dollar amount of property taxes you did in the past.
When the time comes, county commissioners will have to decide if they will adopt the new, higher certified tax rate or if they will leave the rate at it's current lower rate. If they vote to adopt the new higher certified rate, they will surely be accused of raising taxes. If they keep the current rate, the county could lose millions in revenue. It's a real rock and a hard place kind of thing.
Both Lenoir City and the city of Loudon are facing the same situation.
Loudon County Property Assessor, Mike Campbell, reported last month that more than 22,000 parcels of property in the county had gone down in value while 7,425 parcels increased in value with only about 3,000 parcels remaining the same in value.