Tax valuations likely to rise
Staff writer
Most Marion County property owners will see higher property valuations when annual notices are mailed Feb. 27, according to county appraiser Nikki Reid.
Valuation notices will be mailed earlier than usual because the March 1 statutory deadline falls on a Sunday.
Property owners then will have 30 days to review their valuations and, if they believe the figures are incorrect, file appeals.
Most properties will increase in value, but some valuations have declined. This is a shift from recent years when values tended to rise across the board, Reid said.
“Overall, we’re still seeing increases, but not every property went up this year,” Reid said .
Over the past two years, residential property values in Marion County have climbed sharply.
Reid estimated that values increased by a combined 30% across the board in 2024 and 2025 largely because of market activity rather than changes in assessment practices.
Valuations remain market-driven and are based on four years of sales data.
Despite higher mortgage rates, now hovering near 7%, the local housing market has remained strong, with properties often selling at or above appraised values, Reid said.
“We thought we’d see a bigger shift when interest rates went back up, but that hasn’t really happened,” she said. “Properties are still selling fairly high.”
Agricultural land values are treated differently. Farmland is valued based on use rather than what it would bring in a sale and is set by the state using factors such as soil type, rent, and commodity prices.
Agricultural valuations saw only slight increases this year, Reid said.
One common misconception Reid’s office encounters is the belief that higher valuations automatically mean higher taxes.
“Your valuation is part of the formula, but it doesn’t by itself determine your taxes,” she said. “The mill levy is what actually drives what you pay.”
Taxes go up with increased valuation if a taxing entity fails to reduce its mill rate to the so-called revenue-neutral rate.
Mill rates must decrease by the same percentage that valuations increase to prevent tax bills from rising.
Residential properties are assessed at 11.5% of their appraised value. Business propertys are assessed at 25%. Utilities are assessed at 33%.
To estimate your taxes, take your home’s fair market valuation times the 11.5% assessment rate, divide that number by 1,000 to convert to mills, and then multiple that by the total mill rate.
For example, a house valued at being worth $100,000 would have an assessed valuation of $11,500.
If the total mill rate imposed by all taxing agencies was 200 mills, close to the county average this past year, the owner would owe about $2,440 in property taxes.
Increase the valuation of the home to $120,000 but keep mill rates the same, and the tax bill would increase nearly $500.
Keep the mill rates revenue-neutral and the tax bill would be unchanged.
Property owners who believe their valuation is incorrect may schedule an appeal through the appraiser’s office.
The appeal can be conducted in person or by phone. Hearings typically last about 15 minutes and focus on whether the valuation accurately reflects what the property would sell for on the open market.
If the appeal deadline is missed, property owners may still file a protest when tax bills are issued, but the process occurs after taxes are paid.
The goal of valuation process is consistency and accuracy — not taxation, Reid said.
“Our role is to determine value,” she said. “How that value is taxed is decided elsewhere.”