Madison County’s overall property value is expected to dip nine to 10 percent this year. That means local governments can expect less revenue off local property taxes — unless they raise tax rates to offset the drop.
Madison County chief appraiser Robin Baker said House Bill 346, which was passed in 2010, has greatly affected local values. That law mandates that the sale price determines the value of a property for the first year after a sale.
“(HB) 346 is making us put the sales value on it for the first year,” said Baker. “So we’ve lost a lot of value there, because of the foreclosures. A home we may have had $150,000 on was foreclosed and it sold out of foreclosure for $70,000. Well, we have to carry the $70,000 for the first year. And that goes for commercial, residential, vacant land, everything.”
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