REAL ESTATE
by Jim Coleman, REALTOR®
HAPPY DAYS OF TAXES ARE HERE AGAIN
Washington County has just recently sent the "Notice of Property Valuation and Tax Changes" to owners of real property. Property owners will do well to read both sides of the notice form received. It indicates the current real property market value, estimated taxes, and schedules of hearings by the taxing entities. If a tax increase is proposed by a taxing entity, the place, date and time will be shown on the Notice for the hearing.
This document is extremely important and provides taxpayers with a yearly accounting of their properties' current appraised value, property classification and instructions for appealing their market value to the County Board of Equalization. "If you choose to appeal the market value of your property, you must file an appeal application with the County Board of Equalization." While the Notice provided to the property owner does not reflect a break out of valuation for land separate from the improvements, if an appeal is made to the Board of Equalization, the subject of the appeal must address the combined total value of the particular real property parcel.
The county has included the following in its notice to help individuals obtain information: "For information about the Board of Equalization or to obtain an appeal application, please visit the Washington County Boulevard office building at 87 N 200 E, St George, UT, or call435-652-5875 August 1 through August 31 from 1:00 PM to 5:00 PM. Information and appeal applications are also available on [the County's] website at www.washco.utah.gov. Documentation and evidence supporting a differing opinion of market value are required for an appeal. The appeal deadline is September 15, 2008 at 4:00 PM, MDT. All appeal applications must be received prior to that time. Tax notices will be mailed prior to November 1, 2007."
The County has prepared a very useful handout to assist property owner taxpayers in this important process. The information is also on the county website. Since not all readers have the brochure or access to the website, a major portion of the provision pertaining to the Board of Equalization is here provided.
"What is the basis of my property valuation? All real property in Washington County is appraised by the Assessor's Office to estimate 100% market value as of January 1st each year. Market value is typically defined as the amount of money a willing buyer would pay to a willing seller. In other words, if you wanted to sell your property what price would you accept? Foreclosure sales, sales involving special considerations, or sales between relatives are not considered fair market transactions.
"Property owners often ask 'Why are my taxes so high?' The tax shown on your Notice of Valuation is a result of many factors; the market value of the property, tax rates set by the taxing entities in the area you live and tax exemptions given to qualified property owners.
"Please be aware that the Board of Equalization has no authority to change tax rates. If your taxes have increased during the past year it may be due to one or more of the following: Your valuation may have increased due to an addition, remodel, new construction or the ongoing County equalization program.
. The tax rate for the area you live in may be changing.
. Your property classification may have changed from primary to non-primary.
"Should I go through the appeal process? If you have documentation showing that the market value of your property is lower than the County's valuation you may have grounds for an appeal. You may wish to consider the amount of tax dollars to be saved by the appeal process. A fair example would be approximately $10.00 in taxes for every $1,000 in valuation.
"How do I appeal the Market Value of my Property? To file an appeal application, you are required to complete a "Request for Review of Property Market Value" for each property being appealed. You must provide your opinion of value and an explanation of the evidence or documentation you will provide at the hearing. Also, residentially improved properties require a completed "Homeowner's Questionnaire". Commercial properties may be required to provide income information. Insufficient or incomplete information on your application may result in your appeal being dismissed.
"What evidence is required? A current appraisal made by a professional fee appraiser is considered to be the best evidence to demonstrate market value. Closing statements, if you recently purchased your property. Recent sales of properties located in or around your neighborhood that are similar to yours in size, age, condition and quality. All evidence should be based on the tax lien date of January 1, 2005.
"What is the difference between a primary and secondary residence? A primary residence is any dwelling used as a full time residence and can include up to one acre of land. Rental homes and apartments also qualify as primary residences, if the property is the primary residence of the renter. Qualified residential properties are assessed at 55% of their market value. Second homes, vacation homes, cabins, time-shares or other types of transitory housing, commercial properties and vacant land do not qualify as primary residences. These properties are assessed at 100% of their market value.
"How do I know if my home is assessed as a primary residence? The Notice of Valuation you receive each year shows the classification of your property as Primary Residential or Non-Primary Residential. You can also contact the Assessor's Office at (435) 634-5703 for this information.
"How do I change my classification? If the classification of your property is incorrect on your Notice of Valuation, you must submit a 'Request for Review of Property Market Value' an 'Application for Residential Exemption' and a 'Homeowners Questionnaire' to the Board of Equalization. You will need to indicate that you are appealing a Primary/Non-Primary change only. If this is the only change you are appealing, you are not required to schedule a hearing."
While most of us are not thrilled about the taxation process, it nevertheless is part of our society and governmental system. As a property owner, giving attention and due diligence to this procedure are in your best interest. In times of changing markets, the effects of this notice and applicable appeals may be significant. This is especially important to many home owners this year due to economic stress and possible default and foreclosure.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.