Property Tax

1. Property Tax

2. Changed Property Ratio Taxable Assessed Value Real Market Value Growth Capped at 3% Average Growth 6.98% (Residential) • Each year, this ratio grows smaller • The aggregate county-wide ratio determines the amount of Taxable Assessed Value for new properties.

3. How it Works • Rapidly improving neighborhood • Stagnant neighborhood

4. Changed Property Calculation

5. Changed Property Ratios

6. Assessed vs. Market Values Historical thru 2008 Long term trend

8. Macro-Economic

9. Legislative Solutions • Governor’s Task Force on Comprehensive Revenue Restructuring • Formed November 2007 • Report Issued Fall 2008 • Senate Committee on Finance and Revenue • Hearing April 2009 • Introduced three proposed Constitutional amendments

10. Proposed Constitutional Amendments • JSR 35 – Proposes a revision to the constitution relating to ad valorem property taxation • Repeals M5 and M50 • Adds back M5 criteria for permanent tax rate and allows for a rate change by a vote of the people • JSR 36 – Proposes a change in tax assessed value at sale or transfer of existing property. • Minimum TAV = 50% of RMV • Maximum TAV = 75% of RMV • JSR 37 – Proposes a change in exception valuation of property to 75% of RMV on sale or transfer.

11. Residential: • Adjust Taxable Assessed Value upon Construction or Sale

12. What’s Next?