What is this notice I got in my mailbox?
By law, property values in Tennessee must be brought to market value and equalized between the various property types. This notice is your notification of a change in value that has occurred since the last periodic revaluation in 2018.
Are property values really up that much?
It is no secret that property values in and around Nashville have skyrocketed in the last decade. Since the Great Recession of 2007-2011, real estate has increased in value beyond belief.
There are many reasons for this recovery and expansion of market values. Any one of these reasons in and of itself may cause only a ripple in the real estate market. These factors have converged into a perfect storm of factors, thus creating the current market. It’s possible that we may never see another market like this again.
Who is responsible for this?
Property Assessors are charged by the Constitution and statutes of Tennessee to bring all property to market value for property taxation purposes no less frequently than once every six years. In faster growing counties, shorter periods of five or four years may be selected to prevent large jumps between cycles. Rutherford County revalues and equalizes on a four year cycle.
What is the Median increase?
The median increase in values between 2018 and 2022 for Rutherford County Tennessee is around 43 to 44 percent! This is on par with increases seen in all major population centers in Tennessee recently.
Will my taxes go up?
When the areas in Rutherford County calculate a revenue neutral tax rate for their jurisdictions (which is certified to be revenue neutral by the state), they will record low tax rates as well. Citizens should understand that these rates will produce revenue numbers from the tax base which are equivalent to the previous year's tax levy. The tax burden is redistributed based upon the demand in the market for property types.
What happens if the revenue neutral rate isn't adopted?
Should your local taxing authority (your city, town, or county government) exceed this revenue neutral tax rate, then a tax increase will be adopted. The Tennessee Comptroller of the Treasury has created a wonderful video that describes this process very well. You may watch it here: https://youtu.be/icfAgu9COa8
Assessment change notices will be arriving in mailboxes by May 20. You may visit our website for more information www.rcpatn.com or call our office at 615-898-7750 if you have any questions.