City property values fall 8.9%

Published 10:31 am Wednesday, May 9, 2012

FRANKLIN—City Manager Randy Martin will recommend an 11 percent increase in the real estate tax rate for the 2012-13 budget to offset an 8.9-percent drop in property values.

Should the City Council approve the new tax rate, the owner of a home assessed at $150,000 would pay $6 more in taxes — $1,161, up from $1,155.

Values of taxable property decreased by 8.9 percent since the last reassessment two years ago, according to preliminary results from a reassessment conducted by Wampler-Eanes Appraisal Group. With reassessment hearings yet to be completed, Martin expects the average assessed value to drop more.

“We have to consider appeals,” he said. “It could further change the number.”

Residential property values decreased about 11.3 percent and commercial property decreased about 3.1 percent.

Martin recommends increasing the real estate tax rate from 77 cents per $100 of assessed value to 86 cents. This would help keep the city revenue neutral and shouldn’t have a big impact on the average taxpayer whose assessment decreased.

If the city left the tax rate at 77 cents and the assessed value on the $150,000 home decreased by 10 percent, the homeowner would pay $115.50 less per year in taxes.

Reassessment notices were mailed Monday, according to Commissioner of the Revenue Brenda Rickman. The new values are effective July 1.

Property owners have until Thursday, May 24, to call 562-4870 to dispute their reassessment.

Reassessment hearings will be held at City Hall and the assessor will meet daily with property owners on Tuesday, May 22, through Friday, May 25, and Tuesday, June 6, and Wednesday, June 7.