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Hello all,
Now that everyone has had a couple of days to review my previous message regarding the Real Estate tax rate changes, there's one more topic I would like to cover. That being the relationship between the FY2024 budget cycle, the 2023 tax billing cycle and the bi-annual Real Estate assessment cycle. This discussion can easily become confusing via email so I'm going to share the pertinent details in bite-sized portions via bullet-points. Hopefully that will help everyone follow along without anyone getting lost in the details.
- The recently passed FY2024 operating budget will be in effect from July 2023 to June 2024.
- The FY2025 budget planning process will begin in August of 2023 and end with the adoption of the proposed budget in May of 2024.
- We are in year two of the two year property assessment process. So your current assessed property value is based on the assessment that was completed at the end of December in 2021 for the 2022-2023 cycle. (Assuming there were no property changes that drove a change to your property value in 2022 or 2023).
- Your June 2023 and December 2023 Real Estate tax bills will be based on the property assessment mentioned above against the tax rate we set as part of the FY2024 adopted budget ($0.77 per $100 assessed value).
- By the end of December 2023, the County Assessor's office will complete their bi-annual property assessment that will take effect in January of 2024 and run through December of 2025.
- Your June and December 2024 Real Estate tax bills will be based on the new assessment that will be produced at the end of this year and whatever tax rate we set as part of the FY2025 budget.
So, two key points:
1) Your 2023 Real Estate tax bills in June and December will be based on your current property assessment and the current tax rate set in the FY2024 budget.
2) Your 2024 Real Estate tax bills will be based on the new property assessment coming out at the end of the year and whatever tax rate we set as part of the FY2025 budget next year. It's too early to nail down what either of those values will end up being.
So, probably the two big questions on the minds of many people are; will we see a property value increase in 2024 and how might that impact the 2024 tax rate?
Given what we've seen in the housing market over the past couple of years, I don't think it is a stretch to anticipate a property assessment increase next year. By how much remains to be seen. In turn, that increase will have a direct impact on the tax rate in the FY2025 budget that we will set in the first half of 2024. One thing we can be certain of, if we do see significant assessment increases, the Real Estate tax rate in 2024 will be a huge part of the budget discussion for the FY2025 proposed budget.
So stay tuned for how things shape up going into next year. We're all set for this year but we have more work in front of us to get the tax rate correctly set for the 2024 billing cycle.
I hope this information was helpful and not too confusing. As you can see, trying to include these details as part of Sunday's newsletter would probably have resulted in information overload for many people. If you have any questions, please let me know.
Best regards,
Stephen
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