(1) Determining
the appeals allowance must be based on the proportion of atypical appeals
reductions experienced by the city or county in the most recent one or more
reappraisals. The allowance is derived not merely from the percentage of
assessment loss due to appeals in the past reappraisal(s) but on the amount by
which this percentage loss exceeded the typical assessment loss due to appeals
in a non-reappraisal year. The calculation submitted to the State Board of
Equalization should therefore include documentation of the total assessment
base before and after appeals, for the year of the most recent reappraisal
and the year before the most recent reappraisal. The allowable
adjustment is the percentage by which the reappraisal year percentage loss
exceeded the loss from the year before. If data is available for more than one
recent reappraisal, an average may be used. If no verifiable data is available,
the allowance is not permitted. In order for an allowance to be administered it
must be approved by the Executive Secretary of the State Board of Equalization.
(a) Explanation of calculation: The appeals
allowance will appear in the certified tax rate calculation as an assessment
amount to be deducted from the reappraisal year assessment base, and the amount
is determined by multiplying the reappraisal year assessment base (local
assessments only) times the percentage determined under item (1)
above.
(b) Upon receipt of the
assessor's report, the State Board staff shall record net aggregate assessment
reductions by the county board of equalization in the certified tax rate file
for each city and county. In addition, on or before May
1st of the year following the reappraisal, the State
Board staff shall record in the certified tax rate files, the net aggregate
assessment reductions by the State Board of Equalization to date for the
reappraisal year. If the total of these assessment reductions exceeds the
appeals allowance used in the certified tax rate, the Board shall notify the
assessor and the chief executive officer of the city or county, and a certified
recapture rate shall be calculated and determined for the city or county for
the year following the reappraisal.
(2) The recapture tax rate shall be the
actual tax rate from the reappraisal year, reduced by the amount by which the
reappraisal year certified tax rate was overstated due to the excessive appeals
allowance. The city or county may not exceed the certified recapture tax rate
in the year following the reappraisal. without providing public notice and
hearing in the same manner provided for exceeding the certified tax rate in a
year of reappraisal. The city or county must provide the same compliance
documentation regarding the recapture rate as is required when a certified tax
rate is exceeded (affidavit of publication and certified copy of tax rate
ordinance/resolution).
(3) EXAMPLE
OF DETERMINING RECAPTURE RATE:
EXAMPLE
Calculation for certified recapture rate
City of ___________ , 2019 (as of 6-30-19)
|
Line no.
|
Item
|
|
|
1
|
2018 assessed value
|
130,793,172
|
|
2
|
(+) 2018 appeals allowance
|
1,053,000
|
|
3
|
Unadjusted assessments
|
131,846,172
|
|
4
|
(-) Net assmt. changes
|
849,130
|
|
5
|
Adjusted base
|
130,997,042
|
|
6
|
Certified tax rate levy
|
1,106,069
|
|
7
|
Rate bef. 2018 increase
|
0.844 (line6/line5)
|
|
8
|
2018 increase (if any)
|
0.01
|
|
9
|
Recapture rate
|
0.854
|
SIGNED: ______________________
__________________________
Assessor Mayor
