What type of real property is eligible for a reduction in the assessment rate and/or assessed value?
The primary types of reductions are: (1) reduced assessment rate for one primary residence; (2) reduction of assessed value for homestead exemption; and (3) reduced assessment rate for farmland and agricultural property.
A. Primary Residence. If property is used as the owner?s primary residence, the property is eligible for an assessment ratio of Four Percent (4%) rather than the standard assessment rate of Six Percent (6%). If the Buyer fails to apply for the primary residence assessment ratio, the property will automatically be taxed at an assessment ratio of Six Percent (6%). The 4% assessment translates into a one-third reduction of the property tax bill for a primary residence.
B. Homestead Exemption. Property constituting the primary residence of individuals age Sixty-five (65) and older, and widows and widowers age Fifty-five (55) and older, is eligible for a reduction in the assessed value of $50,000. In other words, the value of homestead property is reduced by $50,000 before being multiplied by the assessment rate and millage to determine the tax bill.
C. Farmland and Agricultural Property. If part or all of property is being used for farm and/or agricultural purposes, it may be eligible for a substantial reduction in the assessed value. You should contact the Assessor?s Office for the county in which the property is located to determine if your property meets the requirements.
