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TextReallocation of Land/House Assessed Value
Reallocation of land/house assessed value for Single Family (detached) Residential Properties
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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