Due to changes in state laws there is a new 10% per year assessment increase cap in place for the assessed values for the City, County, and Region portions of your tax bills.  However this cap does not apply to the School Board portion of the bill.

Unfortunately the capping system only affects the value of the property and not the total taxes owed, similar to the way the ���Save Our Homes” amendment capped the increase of Homesteaded properties at 3% per year or the CPI, whichever is less.

Thus you may notice that despite the value of your property decreasing or staying the same the taxes you are required to pay has gone up or stayed the same.  See our post If Real Estate Values Have Gone Down, Why Did My Taxes Go Up? for more in depth explanation.

 

EXAMPLE 1 – ASSESSED AND MARKET VALUES ARE NOT EQUAL
Folio Number:01-1234-56-7980
Tax AuthorityMillagePreliminaryRevisedReductionSavingsRateFee
School Board0.007995$1,500,000$900,000$600,000$4,79735%$1,679
County/City/Region0.014997$1,000,000$900,000$100,000$1,50035%$525
$6,29735%$2,204
Original Tax Bill$26,990
Revised Tax Bill$20,693

In this first example Market Value has risen beyond the 10% capped value, and thus our reduction resulted in a large savings for the School Board portion and a small savings in the other portions.

EXAMPLE 2 – ASSESSED AND MARKET VALUES ARE EQUAL
Folio Number:01-1234-56-7980
Tax AuthorityMillagePreliminaryRevisedReductionSavingsRateFee
School Board0.007995$1,500,000$900,000$600,000$4,79735%$1,679
County/City/Region0.014997$1,500,000$900,000$600,000$8,99835%$3,149
$13,79535%$4,828
Original Tax Bill$26,990
Revised Tax Bill$20,693

In this example both Market and Assessed Values are the same resulting in a large savings in both the School Board and Other portions of the tax bill.