The property tax assessments for most Hamilton County homeowners rose this year by the biggest amount in at least eight years, but fewer homeowners are appealing their reappraisals than in previous assessment periods.
The Hamilton County Board of Equalization began hearing appeals of local property assessments last week and will continue hearing cases and accepting appeals through at least next week.
Hamilton County Assessor Marty Haynes said Tuesday the number of such appeals to the five-member board of equalization is the lowest in decades. So far, only about 135 of the 146,000 residential properties reappraised last year by county assessors have been appealed to the local board of equalization.
"It's still only about one-tenth of 1 percent of all properties, which I am told by those who have been around here for decades that it is one of the lowest rates of appeals that anyone can remember," Haynes said.
Haynes said his office, which includes four state-certified assessors and plans for a couple more this year, included aerial map reviews of all properties for the first time in the current reappraisal cycle.
"I'm very impressed by the work that our staff does, and I think most homeowners understand that home prices have been moving higher in recent years," he said.
With the economy on the mend from the the Great Recession that wiped out most property value gains in the previous reappraisal four years earlier, home values are rising again. According to the Greater Chattanooga Association of Realtors, the median sales price of homes sold in the area rose 22 percent in the past four years.
While the value of existing properties is only about half that amount, most properties showed gains in value since the last reappraisal was conducted in 2012 and sent to property owners the next year.
The latest increases in assessments won't necessarily mean higher property taxes next year. In fact, those whose property rises less than the countywide average will end up getting a tax cut next year, since Hamilton County Mayor Jim Coppinger said Tuesday he doesn't plan to raise property taxes overall in the county. But those in hot areas of the county like North Chattanooga and parts of Ooltewah and East Brainerd are likely to see higher property bills based upon greater appreciation in their properties over the past four years.
Under Tennessee law, local governments must adjust their property tax rates, or millage, to offset any increase in the overall value of existing property. Hamilton County and its 10 municipalities will readjust property tax rates this summer to roll back the rates enough to keep the same amount of money coming into local governments as part of the revenue-neutral requirements of reappraisals in Tennessee.
The reappraisals every four years are designed to equalize tax assessments with the real, changing value of property.
Those who want to challenge their appraisals should call 423-209-7300, Haynes said, and they must file an appeal before June 16 to appear before the county board of equalization. The local board heard 18 cases Tuesday.
Those still dissatisfied with the county board of equalization values for their property may appeal to the Tennessee Board of Equalization and ultimately to the courts.
The current county property rate was set in 2009, when the county's previous $3.15 per assessed $100 of property value was rolled back to its current rate of $2.76 per $100 of assessed property. From 2005 to 2009, the average property in Hamilton County increased 12.4 percent in value in the years leading up to the Great Recession, which hit in the 2009-2010 period and cut the values of many properties in subsequent years.
From 2001 to 2005, property values in Hamilton County rose an average 7.5 percent, which rolled back the property tax rate in 2005 from $3.06 per $100 in assessed value to $2.89 per $100 of assessed property.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.