Here is how our Tennessee property taxes work here in case you are concerned your Tennessee property taxes are going up due to higher appraised value.
First and foremost, higher Tennessee property values during a reappraisal do not necessarily mean higher property taxes in Tennessee.
According to Tennessee state law, the amount of total tax revenue collected by a county (via property tax) must remain the same after a reappraisal, even if the combined value of all property in the Tennessee county increased following the reappraisal. This means that when the appraised value of a Tennessee property goes up, Tennessee state law requires the Tennessee county to lower its tax rate so it cannot generate additional tax revenue simply due to reappraisal. However, while the Tennessee county cannot generate any more tax revenue due to this process, reappraisal can and does affect the total amount of taxes owed by individual Tennessee property owners.
Per the Knox County, Tennessee property assessor’s office, the average appraisal value rose 40% – thus the tax rate will be decreased by 40% to conform with Tennessee state law.
There are basically three scenarios for how this process could impact the dollar amount of taxes owed by an individual Tennessee property owner:
If your individual Knox County, Tennessee property value increased by exactly 40%, the total dollar amount of taxes you pay will be able the same.
If your individual Knox County, Tennessee property value increased by less than 40%, the total dollar amount of taxes you pay will slightly decrease.
If your individual Knox County, Tennessee property value increased by more than 40%, the total dollar amount of taxes you pay slightly increases.
It is also important to note that the changes in the total dollar amount of taxes you must pay as a result of reappraisal are generally marginal. For example, even if your individual Tennessee property doubles (+100%) in appraised value, your taxes will not double since the tax rate will be adjusted down.
Included is an informational video from the Tennessee Comptroller explaining the re-appraisal process in regards to Property Taxes in Tennessee.
Have questions? Need help? Contact the Troy Stavros TEAM at CornerStone Realty Associates at 865-999-0925 today!