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The Department of Tax Administration (DTA)
has started to mail notices concerning the reallocation of the
total assessment between the land and house for Single Family
(detached) residential properties. There are approximately 190,000
of these properties.
Mailing will continue over the next several
days, with all affected properties expected to be completed
by March 28th. Once all notices have been mailed, the DTA website
will be updated to reflect the revised data. Again, this should
occur around March 28th. The original assessment notices for
all other properties remain unchanged.
It is important to re-emphasize that the total
assessment for the Single Family (detached) homes will not change
because of this reallocation between the land and building components.
This is because DTA determines the total assessed value first
by an analysis of comparable property sales; and, only after
the total assessment is determined is the assessment then divided
between land and building. This is to comply with notice display
requirements of state law. Since the total assessment is determined
first, that's why a subsequent change in the allocation between
land and building will not change the total assessment.
The total real estate assessment is the basis
for taxation, and if you believe the total assessment is not
in line with market value, the administrative appeal deadline
to the Department of Tax Administration has been extended to
April 18th. Staff can also review the reallocation of the parts
if requested upon appeal, but this alone will not change the
total assessment.
Also, there is a difference between insurance
value and assessed value of a house. Assessed value reflects
an estimate of accrued depreciation based on age. In the case
of property loss, the insurance value is based on your individual
policy coverage which typically includes the insurance company's
independent replacement estimate of what it would cost to newly
rebuild your home. You should contact your insurance company
if you have questions about your coverage.
Thank you for your patience in this
matter, and again, the website should be updated around March
28th.
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