Lower assessments are beneficial to those planning their estates,

Lower assessments are beneficial to those planning their estates, and, of course, on an individual basis a lower assessment does, in fact, mean a lower tax bill. Some of the reason why property owners will appeal their assessments rests in that self-interest.

There are also some quite compelling reasons why assessments should reflect property sales. The first of which was spelled out in this paper two weeks ago by Col. E.P. Luke, who has the thankless job of chairman of the Board of Assessors. The Commonwealth of Virginia monitors actual property sales, and if the sales-to-assessment ratio goes below 70 percent, the state withholds that county’s share of ABC profits and a percentage of the county’s Public Service Corporation tax revenues. During the past three years Rappahannock has been penalized a total of $36,000 because the 1988 assessment figures were less than 70 percent of actual home sales.

Another reason why accurate, sales-driven assessments are better higher than lower is that homeowners use them to obtain home equity loans, and the assessments are usually a bottom figure when a sales price is negotiated. In the vast majority of cases (anecdotal evidence notwithstanding), the sales price is higher than the assessed price.

Also, more accurate assessments provide land buyers with more precise information, and we would argue that’s always better. And those who improve their properties ought to pay taxes on those improvements, most all would agree.

Clearly the downturn in the regional real estate market will be taking its toll on land sales, which have trickled off to become almost non-existent, but in fairness to the Board of Assessors, they can’t know what market conditions will be like during the next three years. They have to use conditions as they existed during the past three years, and the fact is that period saw higher prices in the county.