Home prices are rising so fast that property taxes can’t keep up.
A new study by ATTOM, a real estate data company, recorded the lowest average property tax increase for a single-family home in 2021.
“It’s no surprise that property taxes rose in 2021, a year when home prices across the country rose 16%,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “In fact, the real surprise is that tax increases haven’t been higher, suggesting that tax assessments are lagging behind rising property values and will likely continue to rise in 2022.”
If you’re buying or staying in your home in Madison County, you better be prepared to pay more property taxes.
“The fact that we’re in a prosperous and growing area is going to drive up prices,” said Madison County tax assessor Cliff Mann.
Many people in the area are already noticing a higher appraised value on their homes, which means they will have to pay more property taxes.
“It’s the demand for housing. It’s the cost of materials for new construction,” Mann said.
He said they calculate the appraised value of a house by looking at home sales in a large area, but it is based on sales from October 2020 to September 2021. So the appraised value will be lower than the value real merchant of a house. is.
“It’s rare that we catch up to the price you would sell it for today,” Mann said.
However, based on current values, WAAY 31 calculated a difference of $300 in property taxes between 2021 and 2022.
The last housing market report from the Huntsville Area Association of Realtors found that the average sale price of a single-family home has increased 19% over the past year and is expected to continue to rise. That means higher property taxes until the housing market cools.
“It’s going to take time for our region,” Mann said.
If you feel your property assessment is too high, you can still appeal, but you will need to prove that your property is not worth what the assessors say. Nonetheless, Mann encourages owners to reach out if they have any questions.
“We encourage them to call, email. Our evaluators are now in the office on standby, waiting to take calls and chat,” Mann said. “If there are adjustments we need to make, we want to be fair and get it right.”
There’s a silver lining to all those property taxes.
Half of this money will go to area schools, and the other half will be shared with cities and municipalities to improve the community – whether through road projects, infrastructure improvements or more funding for services. local fire and police.
You can expect your tax bill to arrive around September. You will then have until the end of the year to pay your property taxes.