Hamilton County will start sending out notices for 2021 property tax reappraisals, with an official saying that values on average have risen from 25% to 30% in the past four years.
"This is historic," said Hamilton County Property Assessor Marty Haynes. "We've not seen increases this big in any previous 4-year reappraisal cycle, but they reflect the increases we're seeing in the sales prices of properties in Hamilton County."
Under state law, county assessors reappraise properties to reflect real market value every four years. Since Hamilton County began doing its own property reappraisals on the current 4-year cycle in 1989, the increases are averaging the biggest amount for 2021.
Tax reappraisals determine the property taxes paid by all homeowners and businesses in Hamilton County, starting next year.
Property owners will be advised about sales price changes in neighboring properties that helped determine the assessed value for their property. They will have until May 20 to informally talk with and question officials about their assessments.
Ultimately, they also can appeal to the county board of equalization to challenge their property assessments.
Under Tennessee law, the property tax rate will be rolled back equal to the higher average value of the assessments in each municipality. Haynes said the process eliminates any inequities created over time due to changes in the real estate market.
Chattanooga's housing market is red hot despite the pandemic.
In February, sales were up nearly 10% with the median home sales price jumping another 10.2% in the past year to hit a record high of $237,443, according to data from the Greater Chattanooga Realtors.
The pandemic has limited the number of people listing their homes for sale in the Chattanooga region, but homebuyers are still flocking to purchase houses.
They're encouraged by low mortgage rates and Chattanooga's appeal to relocating workers, retirees and outdoor enthusiasts. As a result, single-family houses in Chattanooga are selling at the quickest pace on record.
The typical home sold in Chattanooga last month in 39 days, or 36% quicker than a year ago and three times faster than houses sold a decade ago.
Haynes said the total number of properties receiving a reappraisal notice will be just over 170,000.
He said property owners will have until May 20th to contact the Assessor's office to review their 2021 values. Haynes said the Assessor of Property's office has added new software for the public to use to review comparable sales near their specific residential property. The link, which will be printed on all notices, is sales.hamiltontn.gov, he said.
"It's important for property owners to understand my office is responsible for property value. The tax rate is set by the local legislative bodies, County Commission or City Council.," Haynes said. "Per state law, a reappraisal cannot add more revenue for local government, unless it is new construction" said Haynes.
- Compiled by Mike Pare