The value of a property determined by the assessor is the assessed value and is the value indicated on the assessment roll. The taxable value is determined by the auditor after application of state ordered "rollback" percentages for the various classes of property and is the value indicated on the tax statement. When comparing the value of your property with other properties always compare with the value on the assessment roll or the assessor's property record cards and not the value indicated on the tax statement.
What is Market Value?
Market value of a property is an estimate of the price that it would sell for on the open market on January 1st of the year of assessment. This is sometimes referred to as the "arm's length transaction" or "willing buyer/willing seller" concept.
How Does the Assessor Estimate Market Value?
To estimate market value of your property, the Assessor generally uses three approaches.
1. Market Approach
The first approach is to find properties that are comparable to yours which have sold recently. Local conditions peculiar to your property are taken into consideration. The assessor also uses sales ration studies to determine the general level of assessment in a community, in order to adjust for local conditions. This method is generally referred to as the MARKET APPROACH and usually considered the most important in determining the value of a residential property.
The second approach is the COST APPROACH and is an estimate of how many dollars at current labor and material prices it would take to replace your property with one similar to it. In the event improvement is not new, appropriate amounts for depreciation and obsolescence would be deducted from replacement value. Value of the land then would be added to arrive at the total estimate of value.
The INCOME APPROACH is the third method used if your property produces income such as an apartment or office building. In that case, your property could be valued according to its ability to produce income under prudent management; in other words, what another investor would give for a property in order to gain its income. The income approach is the most complex of the three approaches because of the research, information and analysis necessary for an accurate estimate of value. This method requires thorough knowledge of local and national financial conditions, as well as any developmental trends in the area of the subject property being appraised since errors or inaccurate information can seriously affect the final estimate of value.
Why Values Change
State law requires that all real property be reassessed every two years. The current law requires the reassessment to occur in odd number years. Changes in market value as indicated by research, sales ratio studies and analysis of local conditions as well as economic trends both in and outside the construction industry are used in determining your assessment.
If you disagree with the assessor's estimate of value, please consider these two questions before proceeding, as outlined below:
1.What is the actual market value of my property?
2.How does the value compare to similar properties in the neighborhood?
If you have any questions about the assessment of your property, feel free to come in and discuss it with the assessor.
Protesting Your Assessment
You may file a written protest with the Board of Review which is composed of three or five members from areas of the assessing jurisdiction. The Board operates independently of the Assessor's Office, and has the power to confirm or adjust either upward or downward in any assessment.
If you are not satisfied with the decision of the Board of Review you may appeal to district court in Hardin County within twenty days after adjournment of said Board, or twenty days after May 31st, whichever is later.