When looking at buying a home, there will be taxes associated with the purchase.
However, have you ever wondered who determines the amount of taxes you will pay? If so, you are not alone. This individual is the Property Appraiser who has the responsibility of determining the value of property within a certain county for tax purposes.
Keep in mind that this county officer determines property tax values but when it comes to the amount of money required for any services provided, that falls back to the local taxing authorities. In addition, the amount of taxes paid is not something the Property Appraiser’s office determines, which can increase or decrease based on the rate set by the county commissioners, school board, and various taxing authorities.
For the value of property to be determined, the Appraiser first has to know the selling price of similar homes in the same area, along with replacement cost, the amount of money to maintain the home, income it might product, and other factors that might have an impact on the value of the property. With all of these elements in place, the Appraiser can then determine the value, which includes three standard approaches.
First, there is the comparable sales approach. In this case, the value would be
assessed to locate similar homes in the same vicinity that have recently sold. Keep in mind that this analysis has to be carefully examined to ensure the real facts are known. Secondly, there is the cost approach, which is based on the amount of money it would take to rebuild the home at replacement cost, which would include all materials and labor. Finally, there is the income approach, which is used to determine rental income on a home you own.
Occasionally, assessed values change. For instance, a change in the market would have a direct connection in the property value amount. Additionally, if larger or older homes become popular by buyers, the overall property of other homes could rise. Value can increase by adding amenities as well, which would include a swimming pool, landscaping, new roof, add-on bathroom, or bedroom, and so on.
To ensure compliance, most counties conduct property appraisals at 100% market value through an in-depth audit. This way, each year the Property Appraiser would know if the levels of assessment were being followed according to current law. You will receive notification of proposed taxes after buying a house, outlining the explanation of assessed value. If for some reason you do not agreement with the assessment, you have right to write or visit the appraiser’s office to file a formal dispute.