Residents need to know facts about property tax rates
May 25, 2012 at 8:09 AM
Each of Tennessee’s 95 counties is required by state law to conduct periodic reappraisals of all property on the tax rolls. Once completed, county officials must recertify the property tax rate — based on the amount of new dollars coming in — to match the amount collected under the last tax rate adopted by county commissioners.
In some cases, property values will increase following these reappraisals. Homeowners, however, should not panic. Property owners have a right to appeal the new appraisals. It also should be noted that these reappraisals don’t necessarily mean a property tax increase.
Under law, it would take a hike to the property tax for the county to claim all those new dollars. Otherwise, the property tax burden is spread out among new homes and rising property values. This generally results in a lowering of property tax bills.
Property owners also should keep in mind there is a difference between the appraised value of their homes and the amount at which they are assessed for tax purposes. Residential property is taxed at 25 percent of its assessed value. Meanwhile, commercial property is taxed at 40 percent of assessed value.
This is information that every taxpayer in Tennessee needs to know.