Q: Why is it necessary to make changes between revaluations?

A: Annual studies conducted by the Assessor's Office sometimes indicate larger than normal disparities between assessed values and selling prices. If a consistent pattern is identified on a particular property type or neighborhood, an adjustment is necessary to provide equal treatment to all taxpayers. This would include both upward and downward trends. Ideally, all property should be assessed at the same percentage of just value.

Q: What is just value?

A: It is the same as fair market value, and means the most likely price a property would sell   for under normal circumstances.    Sometimes sellers need to sell quickly, or buyers need to relocate quickly.   The prices paid in these transactions may be more or less than market value because of these circumstances.

Q: Who determines the value of property?

A: People do. Buyers and sellers of property determine the market.  It is the Assessor's job to research and analyze values in a particular area, not merely to guess what they might be.  A single property transaction, however, would not determine value. All sales in a given area are used as guidelines and the Assessor takes into account many other factors to come up with just value.  A few of the factors are:  local market conditions; size   and   quality   of   construction; age   of   buildings; improvements; desirability of   a   neighborhood; location influence such as water access or view.

Q: Isn't fair market value what someone pays for property?

A: Not always.  Some people pay more than fair market value for property.   Others may have bought their property at a bargain price, and others may have purchased years ago when prices were lower (and in some cases, higher)

Q: How are assessed values determined?

A: Studies are conducted on all sales within a specified time frame.   When land sales are present, the land valuation tables are based on those sales.  However, many neighborhoods are fully developed and very few, if any, sales of undeveloped land are present.    In these cases, a careful determination of the building's contributory value to the overall property is made. This value is then deducted from the sale price to develop the indicated land value.  Tables are then created to apply to other properties that have not sold.   All factors are considered in this process, such as topography, location, views, legal restrictions and zoning.

Q: How can property owners be assessed for a view?

A: People pay more for property if it enjoys a pleasing view of water, mountains arid city lights, for example.  Sales of similar buildings but with different views determine how much a view adds to the value of property, and there are varying values depending on how good the view is

Q:How do property owners know if their assessment is equitable?

A: Property owners are encouraged to examine the sale studies and tables developed for their particular area, as well as reviewing their own records for errors.   Informal meetings with the Assessor for an explanation of the process are helpful. Property owners can consult with local real estate professionals on their assessed valuation to assist them in determining the accuracy of the assessment.

Q:What should a property owner do if they disagree with the assessment even after meeting with the Assessor?

A: A formal appeal may be made to the Assessor after the taxes are committed in mid-July. The appeal process beyond the Assessor would be to the Lyman Board of Assessment Review, and then Superior Court

Q:What happens to all this additional tax revenue?

A: Equalization of property does not raise additional revenues; its purpose is to value all properties by the same standard. This brings about uniformity in property valuations and assures all property owners that they are paying only their fair share of the cost of providing community services.

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