North Platte’s 2022 “budget season” started unfavorably in June for three individual homeowners whose individual assessed values rose for the first time in four to five years.
Now, with total assessed values certified, they are looking at notable reductions in their gross property tax bills – depending on whether the 2022-23 tax demands from the governments serving their properties reduce or eliminate them.
Since 2018, The Telegraph has tracked the piecing together of these homes’ annual tax bills to show how the factors in the property tax equation – individual and total assessed values, tax claims and tax rates – affect the final form of homeowners’ tax bills.
Each government’s tax rate (expressed in dollars and cents per $100 of taxable value) results from dividing its tax claim by its total taxable value.
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Their combined tax rates are then multiplied by the individual assessed value of a property to establish the new gross tax bill for that property.
But that’s not the end of the story of fixing taxes each year. In recent years, the Legislative Assembly has added three separate tax credits — one applied directly to the property tax bill, the others indirectly through income tax credits — to reduce the actual invoice for each property.
In general, a higher individual property assessment tends to increase the tax bill for that property.
But a higher combined valuation for a local government (its “tax base”) tends to lower it. In effect, this spreads the tax burdens of governments more widely on the properties they serve.
A government’s tax demand can erode a property owner’s gains from a higher total assessment, depending on whether that demand increases or decreases from the previous year. Tax demands and local budgets will be set in the coming weeks.
With all that in mind, let’s take a look at where the 2022 tax setting trends are for our three sample homes.
Remember, however, that these numbers reflect new individual and total taxable values from this year, but old tax claims from last year.
Home 1, which is north of the UP lanes, is now considering a gross tax reduction of $116.95 as opposed to an increase of $157.57.
This house has had a general assessment increase of 7% applied to all houses north of the railway line. Higher total taxable values for North Platte’s eight property tax consumers have upended its tax picture so far.
House 1, which is three bedrooms and one-and-a-half stories with a full basement, saw its 2022 tax assessment drop from $109,950 to $117,647.
House 2, a two-bedroom single-storey house near Westfield Shopping Center, would now receive a gross tax reduction of $112.03 – assuming no change in local tax claims – instead an increase of $86.25.
Like all homes in North Platte south of the tracks, its valuation in 2022 has only increased by 4%. Assessed values were increased on both sides of the tracks for 2022 to meet the state’s legal requirement that they reflect 92% to 100% of actual value.
The assessed value of the Westfield-area home rose in June from $105,325 to $109,538.
Home 3, which like Home 2 saw its valuation rise 4% in June, would now receive a gross tax reduction of $303.90 instead of a $233.96 increase if claims for local taxes remained stable.
This house, which is south and west of house 2, has four bedrooms and two floors. His individual assessed value rose in June from $285,720 to $297,149.
Owners of all three homes, like their North Platte counterparts, will learn by the end of September what directions their 2022 gross tax bills will take.