Some residents baffled by property assessments
Posted on Wednesday, August 27, 2008
BENTON COUNTY ó In a market of increased foreclosures, failing banks and an inability to sell homes, it comes as no surprise that many property owners in Benton County are frustrated with the dramatic increase in their 2008 property-tax assessments.
The thing some property owners seem to be most flustered with is not the idea that their property is worth more, but the notion that ó if they were to sell the property today ó they simply would not receive the money that the Benton County Assessor says the property is worth.
When John Wheatley of Centerton received his Notice of Real Estate Value Change, he was shocked to see his home was valued at $ 138, 100 because the property across the street from his, with a similar lot and home size, has been on the market ó unable to sell at a price of $ 119, 000 ó for months.
ì I would love to say that my property is worth $ 138, 000, but I do not see it selling for that much money, î Wheatley said. ì I do not mind paying the taxes if this is actually what the property is worth. î
This, for Beverly Bell, an agent with Hutchinson Realty in Bentonville, is a problem because it means the assessed property values do not reflect reality.
The reality of the situation is that ìproperty values have declined. There are 4 1 / 2 years of inventory on hand in Benton County right now without building another house, î Bell said.
ì Apparently property is being assessed at 2005 (values ), Ö (but ) the values are not the same, î Bell said.
The property-assessment situation was the subject of debate at a meeting in Little Rock on Thursday when County Assessor Bill Moutray discussed the assessments before the state Legislature.
ì I put all of the beans out on the table (Thursday ). Hopefully, (in the future ) I can do an appraisal every year. That will keep up with the market a little better, î Moutray said.
The Legislature will not be able to change the laws surrounding the way property assessments are done until lawmakers meet in January.
Another reason Benton County property owners are upset with the increased property assessments is that the higher assessments equal higher taxes.
ì Taxes will definitely go up, obviously, if the assessed values go up, î County Tax Collector Greg Hoggatt said.
While taxes can only increase 5 percent per year on homestead property and 10 percent on all other properties, the tax cap only protects property owners for one year. If a property owner sees an increase of more than 5 percent on homestead property, that owner can look for his or her taxes to increase by 5 percent each year until the percentage of tax increase equals the percentage of propertyvalue increase, or until the property is reassessed in three years, Hoggatt said.
Just where do the tax dollars go ? For each tax dollar paid to Benton County, 80 cents is earmarked for public schools, 10 cents for city government, 8 cents for county government and 2 cents for county roads.
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