Assessment Change

If you're one of the 32,000 property owners in Loudon County, chances are you have received a letter from the Loudon County Property Assessor telling you that your "assessment has changed." What exactly does that mean, I'll try to explain.

Loudon County reappraises all property every four years. It's the law and is the way property taxes are calculated. Your letter may show that your assessment has gone up or gone down. Of the 32,000 properties in the county around 16,500 assessments went up, around 12,500 went down and around 3,000 stayed the same. Your assessment may have gone up because you made some improvements over the last four years or because the area you live in property values have just gotten higher. Just because your assessment went up, doesn't necessarily mean your taxes will go up. But they might. 

The current Loudon County property tax rate is right around $1.86 per $100 of assessed value, fourth lowest in the state. The exact tax rate is $1.8587, I rounded up for simplicity. This rate has been the same since 2014. Generally, in a reappraisal when property values go up, by law, the property tax rate will go down essentially leaving the tax you owe about the same. Soon, the state will issue the new certified tax rate for the county. Usually, the new certified rate will be lower than the current rate thus keeping the tax we owe about the same.

The property assessor is not responsible for the tax rate nor the collection of the taxes. The county commission sets the tax rate and the county trustee collects the taxes.  

While your letter from the assessor doesn't really give you an idea of how much your taxes will increase or decrease, it's a simple calculation to get some idea. Look at your letter and find the "previous assessment" and the assessment @25%. Take those two numbers and subtract the smaller from the larger. Multiply that number by .0186 and that will tell you pretty close how much your taxes went up or down.

I'll use one of mine for example.

In my case, my property tax would go up by $42.78. But remember, this is calculated at the current property tax rate of $1.86. If the new certified tax rate goes down, my tax increase would also go down.

Please understand, these are just approximate calculations but close enough to help you figure your tax obligation with a new assessment.  

I'll let you know when we get the new certified tax rate.