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Associations of County Commissions of Alabama 2010 Annual Legislative Conference

Associations of County Commissions of Alabama 2010 Annual Legislative Conference. December 1 , 2010. Annual Reappraisal and County Revenue. Focus —To discuss impact that Annual Equalization has had on Alabama Property Taxes since implementation Discussion Areas: Benefits to the taxpayer

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Associations of County Commissions of Alabama 2010 Annual Legislative Conference

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  1. Associations of County Commissions of Alabama 2010 Annual Legislative Conference December 1, 2010

  2. Annual Reappraisal and County Revenue • Focus—To discuss impact that Annual Equalization has had on Alabama Property Taxes since implementation • Discussion Areas: • Benefits to the taxpayer • Benefits to the county • Why annual equalization in the first place? • Reasons why annual equalization is the preferred valuation procedure

  3. Benefits to the Taxpayer • Smaller annual increases in market value during good economic conditions • As opposed to a large increase every fourth year. • Allows for decreases in market value during bad economic conditions based on market sales data • Example: Baldwin County

  4. Baldwin Median Home Prices

  5. Benefits to the County • Provides for a more stable work flow. • Provides a more identifiable and steady revenue flow. • Maintains more accurate market values for all properties – Equalization. • Decreases the number of Board of Equalization hearings.

  6. Benefits to the County • Improved equalizationof market values among similar and dissimilar properties • Improved equalizationof market values from county to county state wide • The sales ratio statistics will be more equitable across the state • Providing fairer treatment to all classes of taxpayers statewide

  7. Sales Ratio Comparison

  8. Assessed Value Levels

  9. Why Annual Equalization on Real Property? • All other types of properties in the State of Alabama are revalued annually: • Public Utility Property • Business Personal Property • Current Use Properties • Motor Vehicles • Railroads and Airlines

  10. Why Annual Equalization is Best • Under Annual Equalization: • Land Values are Current • Improvement Values are Current • Under 4-Yr Reappraisal • Land values are six years old before taxes are collected on that valuation • Improvement values are six years old before taxes are collected on that valuation

  11. Why Annual Equalization is Best • When the “new”valuation is applied the public perception is that property taxes have increased 20 to 30 percent or more in one year when • Actually, that increase is approximately a six-year cumulative increase

  12. Alternative Legislation • Conduct individual county-by-county reappraisal every four years. • Maintain countywide median ratio of 90% to 105% each year. • Maintain Coefficient of dispersion of 20% or less each year. • Reappraise all property to within 2% of current market value any year the above requirements are not met.

  13. Questions / Comments

  14. Thank You

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