State law requires that county Assessors value all taxable property at market value. This is 100% of its true and fair market value in terms of money. This is done according to the highest and best use of the property. All real and personal property is subject to tax unless exempted by statute. Recent sales of comparable property are used to help set the value.
To find the value of any piece of property the Assessor must first know what properties similar to it are selling for, what it would cost today to replace it, how much it takes to operate and keep it in repair, what rent it may earn, and many other dollar facts affecting its value, such as the current rate of interest charges for borrowing the money to buy or build properties like yours. Using these facts, the assessor can then go about finding the property’s value in three different ways.
This method compares your property similar properties in the county that have sold recently. These prices, however, must be analyzed very carefully to get the true picture. One property may have sold for more than it was really worth because the buyer was in a hurry and would pay any price. Another may have sold for less money than it was actually worth because the owner needed cash right away, whether the property was sold to the first person who made an offer.
When using the sales comparison approach, the Assessor must always consider such overpricing or underpricing and analyze many sales to arrive at a fair valuation of your property. Size, quality, condition, location, and time of sale are also important factors to consider. Sales outside the county are rarely utilized.
COST APPROACH: A second way to value your property is based on how much money it would take, at current material and labor costs, to replace your property with one similar. If your property is not new, the Assessor must estimate how much a lot like yours would be worth if vacant.
INCOME APPROACH: The third way is to evaluate how much income your property would produce if it were rented as an apartment house, a store, or a factory. The Assessor must consider operating expenses, taxes, insurance, maintenance costs, and the return most people would expect on your kind of property.
WHY MIGHT MY ASSESSED VALUES CHANGE FROM YEAR TO YEAR?
When the market value changes, naturally so does the assessed value. For instance, if you were to add a garage to your home, the assessed value would increase. However, if your properties condition has substantially deteriorated, the assessed value may decrease.
For clarification purposes: The Assessor does not create the value. “People make value” by their transactions in the market place. The assessor simply has the legal responsibility to study those transactions and appraise your property accordingly.
HOW OFTEN DOES THE COUNTY APPRAISE MY PROPERTY?
State law requires that all properties have a detailed review once every five (5) years. Market value adjustments may be applied annually.
WHY DO PROPERTY TAXES VARY THROUGHOUT THE COUNTY?
There are several different taxing entities in Millard County. Cities, counties, fire districts, water districts, mosquito abatement districts, and schools all have the ability to levy taxes. Each of these entities has different budgeting needs and therefore has varying tax rates.
DO I HAVE TO LET THE COUNTY APPRAISER COME INTO MY HOUSE OR ONTO MY PROPERTY?
No. You do not have to let the Appraiser into your home. However, it is probably in your best interest to allow the Appraiser to inspect the exterior of your home. This will ensure the condition and exterior dimensions are correct in the county records. If access is refused, the Appraiser must estimate the value of the property using whatever information he or she has available. Any information estimated as a result of denial by the owner for access is not appealable.
WHAT IS MARKET VALUE?
Fair Market Value is the amount which property would change hands between a willing buyer and a willing seller, neither party being obligated. This type of sale between non-obligated buyers is also called an arm’s length transaction.
IF THE HOUSE NEXT DOOR SELLS TO AN OUT- OF-STATE BUYER FOR MUCH MORE THAN IT IS WORTH, WILL IT AFFECT MY TAXES?
A single property sale does not establish the market value for surrounding properties. A sales ratio study of all the sales in Millard County is used as an aid to determine market value.