OCR Text |
Show in via. ion causes problems in property flax equalizaiic Despite improvements in the quality of assessments resulting from the property pro-perty revaluation program, inflation has tended to destroy tax valuation balance among Utah counties. This was the conclusion reached by Utah Foundation, Foun-dation, the private tax research organization, in a study of property assessment levels in Utah. According to the Foundation report, the property revaluation program, which now has been completed in all 29 Utah counties, has greatly reduced the inequities that formerly existed among individual properties and among property pro-perty classes. Uniformity of assessment assess-ment improved dramatically within each county following revaluation. Moreover, there is greater uniformity in assessment levels (the ration of assessed valuation to fair market value) among property classes than ever before. Inflation in real estate values, however, is creating new assessment disparities among individual counties. When property first is reappraised, it is placed on the tax rolls at or near the 20 level. Rising real estate values soon cause this initial equalization to become dated. The average assessment level of property in counties which were revalued and placed on the tax rolls at near 20 in 1972, for example, had declined to 7 of current market value by 1979. On the other hand, the average assessment level of the last three counties coun-ties to be reappraised was 19.35 in 1979.. According to the report, the average assessment level in Uintah County during dur-ing 1979 was 8.00. Thus, a property with a current market value of $100,000 in Uintah County was likely to be assessed at $8,000 last year. For the state as a whole, the average assessment assess-ment level was 14.13 in 1979. Assessment levels for earlier years in Uintah County were 10.19 in 1978, 13.97 in 1976, 16.91 in 1974, 11.06 in 1972, and 12.65 in 1970. The county-by-bounty revaluation program went into effect in Uintah County during 1973. Assessment levels for earlier years in Duchesne County were 7.47 in 1978. 10.56 in 1976. 12.93 in 1974, 18.70 in 1972, and J 1.26 in 1970. The county-by-county revaluation program went into effect in Duchesne County during 1972. Assessments levels for earlier years in Daggett County were 7.85 in 1978. 12.29 in 1976, 17.11 in 1974, 1870 in 1972, and 14.10 in 1970. The county-by-county revaluation program went into effect in Daggett County during 1972. The average assessment level during 1979 in Duchesne County was 7.23 and in Daggett County 6.89, according to the report. The study notes that legislation enacted by the 1979 Utah Legislature attempts at-tempts to correct the disparity among counties by providing that "taxable real properties revalued. ..after January' 1. 1978, shall be apprij .. current fair market value and j shall be rolled back to the iizj i 1978 level". In addition, new prr? : added to the Lax rolls after tt will have their values rolled taai January 1. 1978 level. In effect, the change provide; J 1979 legislation will "free:' -assessment levels for locally-isi ; real estate and improvements t -' at the 1978 level. Over a period ' the move should correct the Ls: that have developed among coca a result of inflation. Foundation analysts pci:: however, that the 1979 chii . gradually reduce the overall w assessment level for this class perty and increase the disparts exist between locally-assessed reij. perty and other property classes as personal property and i assessed property, which confc -assessed in excess of 20 of rec current values. - Prior to the 1979 change, VuS provided that "local county as4 shall, with direction from the commission, maintain their kvilj tions of assessment to fair ' value." As a practical M however, these local rations 1 ' being maintained, and LhisaocM the steady decline in a county's ' ment level following revaluatioc . |