Property Re-Appraisals
You've been reappraised. What's next?
Property taxes are a hot topic, and here's what you should understand.
Property taxes are influenced by:
The Assessed Value, which comes from the County Assessor, and
The Property Tax rate, set by the Mayor and Metro Council.
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According to state law, the Assessor's Office must reappraise properties every four years. This appraisal estimates a property's most likely selling price, considering factors like structure condition, construction type, age, and land features.
A percentage of the appraised value is taxable, determined by statutory assessment percentages based on property use. For residential properties, this rate is 25%.
For instance, a home appraised at $1,000,000 has a taxable assessment of 25%, equating to $250,000. Property taxes are then calculated based on this assessed value.
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The actual tax liability for a property owner is determined by the rate established by the Mayor and City Council.
Currently, the property tax rate stands at 3.25% per $100 of assessed value.
Using the previous example, taxes on a $250,000 assessed value at a 3.25% rate would be $8,125.00.
The mayor has suggested a new tax rate of 2.814%. While this rate appears lower than the current 3.25%, average reappraisals in District 23 have seen approximately a 52% increase. Therefore, even with a reduced rate, the overall tax amount will rise significantly.
With our $1,000,000 home example, a 52% appraisal increase means the property is now valued at $1,520,000. The 25% taxable assessment becomes $380,000.
Applying the proposed 2.8145% tax rate results in a tax bill of $10,693.20. Although the rate is lower, the substantial increase in appraised values leads to higher taxes, marking a 31.6% increase from last year's tax bill.
A 13.5% reduction in the tax rate doesn't offset the substantial rise in appraised values.
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If you believe your appraisal is inaccurate, you can submit an appeal. Appeals must be filed with the Nashville Property Assessor by May 9. Follow this link for the appeal process details.
If you have questions about this topic, let's connect. We’re here to answer all your real estate related questions.
