What is taxable accessed value? This term typically varies from state to state since it’s determined by the “taxing authority” of the city, town, county where the home resides.
Sometimes a taxable accessed value for a home is almost exactly the same as its market accessed value but not every county especially when different formulas and percentages are used to determine home’s taxable accessed value.
Tax Accessed Value Breakdown
To determine a home’s Total Assessed Value (TAV), the value that taxes are based on, the assessor will evaluate homes in the area that have been recently remodeled, subdivided and constructed and will typically access the value of the home or property at a ratio that can range from 60% to 90% (depending on area).
With the recent economic downturn and fluctuation in home values across the United States, most homes are now being accessed at 95% or close to their full market values. For example: In Deschutes County Oregon, homes were accessed at 69.97% of their market values as late as 2003 but due to recent changes in the economy, and rising home values, property values in Deschutes County were being accessed at 95.3% of their market values as of 2012.
The changes in determining a home’s Total Assessed Value can greatly affect a consumer’s tax liability when they are purchasing a new home.
Market Assessed Value
When it comes to calculating the market accessed value of a home, the assessor or taxing authority, will access the value of the home after doing a comparable analysis of homes that have recently sold in the area during a specific period of time.
Market accessed value isn’t always accurate either because, as in the case of the current Bend Oregon Real Estate Market, you can’t assess a home’s value accurately unless you’re basing that assessment on current home values because, with home values climbing every day, it’s realistic to say that a home will have been undervalued if it’s accessed against home values from three to six months ago.
A homes market accessed value should not increase by more than 3% per year, especially if no changes have been made to the property but, consumers who recently purchased a home, and plan on making renovations to it should be prepared for an increase in its tax accessed value because, in many cases when a home’s market accessed value goes up, it’s tax accessed value can go up by as much as 30%, and this can have a significant impact in the taxes that a homeowner can expect to pay for that tax year.
Understanding tax accessed value and market accessed, when purchasing a home can be difficult, but not confusing, especially if the homeowner has an experienced Realtor who is knowledgeable with this form of Real Estate and provide them with the information that they need to be prepared for taxes they will have to pay in the future.
To learn more about tax accessed value, and market accessed value, or to view the latest Bend Oregon homes for sale, contact me today by calling me for a free Real Estate consultation at: (541) 383-1426