Assessment notices are being sent to property owners in Fayette County, and some may be surprised by a large increase in their assessment — a factor that ultimately influences how much they will pay on their property tax bill.
According to Fayette County Property Assessment Administrator David O’Neill, in at least some cases, people are seeing a 30% increase in their property assessment.
“A lot of people are in sticker shock,” O’Neill said of the notices his office sends out in the mail this time of year in an attempt to explain the changes.
According to O’Neill, that largely comes down to the warm local real estate market.
“We’re still selling a lot of houses,” O’Neill told the Herald-Leader in an interview Tuesday. The demand for housing adds to the gradual increases in property valuations over time.
Read on for more information on how the Fayette County PVA office conducts assessments and an upcoming deadline you should be aware of.
How often does PVA conduct appraisals and how do they notify owners?
The assessed value of the last certified property tax roll in 2021 is $30.5 billion, O’Neill said.
His office does home appraisals on a rotational basis — about a quarter of all homes in the county each year.
Among homes reassessed for 2022 (properties that had not been reassessed for four years), the median increase in value was $43,400.
“This year was different from other quadrennial reassessments because it was the year of condominiums and townhouses. All condos and townhouses have been reassessed for 2022,” O’Neill wrote in a follow-up email.
Among traditional single-detached single-family home neighborhoods, here are some large neighborhoods that have seen the biggest increases in sales prices and land values, according to O’Neill:
- Blackford Properties
- blueberry hills
- copper field
- dogwood trail
- Garden of springs
- Idle time
- North Broadway
- North Point
- Southeast Hills
- Stone wall
- Of race
- Wickcliffe
O’Neill shared several documents with the Herald-Leader, including a sample property assessment notice. The notice, which comes in a red lined envelope and bears the official PVA letterhead, presents homeowners with their appraisal (labeled as Fair Cash Value) and the change in assessed value.
This is not a tax bill, these usually come out the last week of September. This notice simply states what the Fayette County PVA determined your property was worth as of January 1, 2022.
For valuation purposes, “fair redemption value” refers to the most likely sale price in a competitive and open market with a knowledgeable and willing buyer and seller. “Assessed value,” as defined on the notice template that ratepayers should receive in the mail, is the value on which property taxes will be based.
Property value assessments take into account several factors. That includes comparable home sales near you, and O’Neill said each review typically lists five examples.
On the back of the form, you’ll find a map that documents the various home sales in your area, including the property’s previous valuation and the price it sold for.
There is still time to appeal your assessment. The deadline for appeals is May 16.
How do I determine how much money I will owe on my property tax bill?
The easiest way is to use the calculator the PVA office provides online.
To get an estimate from this, you will need the assessed value of your property and your tax district. Each property’s tax district is listed along with all other characteristics on each property’s listing at FayettePVA.comaccording to O’Neill.
The last property tax rates are available on the Fayette County PVA office website.
Otherwise, to calculate your tax bill, you divide the value of your home by 100, then multiply that amount by the given tax rate for your tax district. The example on the Fayette County PVA website is as follows: “If your home was assessed at $75,000 and the tax rate was $0.80 per $100 of value, the tax is $600.”
Do you have a question about real estate in Lexington or Kentucky? We would love to hear from you. Complete the form below or email ask@herald-leader.com.
This story was originally published April 28, 2022 06:00.