April 29, 2010 State Provisions for Property Reassessment Justin Higginbottom Justin Higginbottom Print this page Subscribe Support our work Download Fiscal Fact No. 223 Fiscal Fact No. 223 Property taxes represent the lion’s share of local government tax revenue, with local governments raising nearly $400 billion per year from this source to fund services. Property taxes are a type of ad valorem tax, calculated as a percentage of the assessed value of the taxed property. Generally an assessment of the property is made by determining how much similar property can be sold for on the market at that time, with some states discounting the market value by a certain percentage. But property values—such as home prices—are not static. Over time the market value of property will change, and not in a uniform pattern. That is, even in the same county, some property will appreciate rapidly while values elsewhere may stagnate or even drop. These variations in market value necessitate regular reassessment of the property in order to levy an equitable property tax. Usually assessors hired by local governments do the work. Infrequent reassessments can result in significant over- or underpayment of property taxes. If one’s property has decreased dramatically in value—which has been the case for many American homeowners since 2006—a property tax using the old higher value for the property would not be correct. Of course, governments have the choice to increase property tax rates as values decrease in order to maintain or increase revenue. Conversely, in good times, many governments keep property tax rates constant or cut tax rates as property values rise. The combination of infrequent reassessment with rate increases shifts the property tax burden away from those whose property has been appreciating onto those whose property values have been declining. States have different requirements for how frequently reassessments are conducted. Nine states do not have state provisions for when reassessments take place. Most states follow an annual to five-year schedule. A few states do not require reassessments for up to 10 years. Following is a summary of state statutes, where they exist, of property reassessment schedules: March_April_2010_WebVersion.indd Table1 State Laws Governing Reassessment of Real Estate for Tax Purposes State Frequency of Reassessment Required Statute Ala. At least once every 3 years Alabama Appraisal Manual, Ch. 2 (Administration and Organization) Alaska Annually AS 29.45.160, AS43.56.090; AS 29.45.150 Ariz. Annually Sec. 42-15101, A.R.S.; Sec. 42-13051, A.R.S; Sec. 42-13052, A.R.S. Ark. At least every 3 years (1) Sec. 26-26-1902(a) and (b), A.C.A Calif. Usually whenever a “change of ownership” occurs or new construction is completed Sec. 75.10, Rev. & Tax. Code, Reg. 463.500, 18 CCR; Sec. 62, Rev. & Tax Code Colo. Every 2 years Sec. 39-1-104(10.2), CRS Conn. Prescribed schedule. At least every 10 years following reappraisal Sec.12-62(a) and (b), G.S. Del. No provision Sec. 8317, Tit. 9, Code Fla. At least every 5 years Sec. 193.023(2), F.S. Ga. Annually Reg. Sec. 560-11-2.28 Hawaii No specific requirements Idaho At least every 5 years IC Sec. 63-314 Ill. Every 4 years. Cook County is assessed triennially 35 ILCS 200/9-215 Ind. Every 5 years IC 6-1.1-4-4 Iowa Every odd-numbered year except for property of public utilities, which is assessed annually Sec. 428.4, Code of Iowa; Sec. 434.1, Code of Iowa Kans. Dependent on county Sec. 79-1476, K.S.A., Sec. 79-1478, K.S.A. Ky. At least every 4 years Sec. 132.690, KRS La. Real property at least every 4 years. Annually for personal property Sec.18(f), Art. VII, 1974 La Const., Reg. 105, LAC, Reg. 121, LAC; Sec.47:2331, La R.S. Maine At least every 4 years Sec. 328, Tit. 36, M.R.S.A. Md. Every 3 years Sec. 8-104, Prop. Tax Art Mass. Annually, certified by state every three years MGL ch. 40 § 56, MGL § 2A Mich. Annually MCL 211.10 Minn. At least every 4 years Sec. 273.08, Minn Stats Miss. No provision Miss Code Ann. Sec. 21-35-29 Mo. Every 2 years Sec. 137.115, RSMo.; Sec. 137.115, RSMo. Mont. Annual assessment mostly MCA 15-7-111;ARM 42.20.516 Nebr. Annually Sec. 77-1201, R.S., Sec.77-1301, R.S. Nev. At least every 5 years (4) NRS 361.260 N.H. No provisions RSA 71-B:16 N.J. When improvements are made Sec. 54:4-23, R.S. N.M. At least every 2 years NM Stat Ann Sec. 7-38-7; NM Stat Ann Sec. 7-36-16; 3 NMAC6.5.23 N.Y. No provision N.C. (2) Sec. 105-286, G.S.; Sec. 105-287, G.S. N.D. Annually Sec. 57-02-11, NDCC Ohio At least once every 6 years Sec. 5713.01, Ohio R.C., Rule 5705-302, Ohio Admin. Code; Sec. 5715.33, Ohio R.C. Okla. Every 4 years Sec. 2820, Tit. 68, ).S. Ore. No provisions Pa. Annually 72 P.S. 5341.7, 72 P.S. 5347, 72 P.S. 5354.601 R.I. Every 10 years Sec. 44-5-11, G.L. S.C. Every 5 years Sec. 12-43-217, Code S.D. No provision Tenn. Every 6 years Sec. 67-5-1601, T.C.A. Tex. At least every 3 years Sec. 25.18, Tax Code Utah At least every 5 years Sec. 59-2-303.1, Utah Code Ann. Vt. (3) Sec. 4041a, Tit. 32, V.S.A. Va. Every 2 years in cities and every 4 years in counties (5) Sec. 58.1-3250, Code; Sec. 58.1-3252, Code Wash. At least every 4 years RCW 84.41.030 W.Va. Annually Sec. 11-1c-7, Code Wis. At least every 5 years Sec. 70.05(5)(b), Wis. Stats. Wyo. At least every 4 years Rule Ch.9, Sec. 3, WY DR D.C. At least every 3 years Sec. 47-820, D.C. Code (1) Arkansas counties that completed reappraisal between 2002 and 2004 have a 5-year reappraisal cycle. (2) North Carolina counties with population of 75,000 or greater must reassess real property within 3 years if the county’s sales assessment ratio is less than .85 or greater than 1.5, or if no change, within 8 years of county’s last reassessment. All other counties: every 8 years. (3) In Vermont, state assessors calculate current fair market value for all properties each year, whether or not they have been reassessed locally. When the aggregate assessment of property in any township is less than 80% of the state-level “equalized” assessment,” the locality must reassess all of its properties. (4) All counties are moving to a system of annual reappraisal. All counties reappraise land every year and Clark County reappraises both land and buildings annually. (5) Virginia makes an exception for some counties that allows them to have up to 6 years between reassessments. (Alleghany, Amelia, Amherst, Appomattox, Bath, Brunswick, and Buchanan County to name a few.) Source: Tax Foundation, Commerce Clearing House. Topics Center for State Tax Policy Property Taxes Tags State Tax and Spending Policy
