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Annual Budget |
Expenditure YTD |
Remaining Budget |
% of Year |
% of Budget |
Explanation |
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*Please note, the data for this table is provided by the Property Assessor. You can contact the Rutherford County Finance Department for additional information.
PREFACE
The assessor of property was a statutory office for many decades before it became a constitutional office following the 1978 amendments to the Tennessee Constitution. The Assessor of Property is elected to a four year term in the August general election in even numbered years in which there is not an election for governor. T.C.A. § 67-1-502.
County Assessors are exclusively responsible for determining values of property for property taxation purposes in accordance with the TCA 67-5-601., assessors shall also implement a program of updating property values so that current and correct values of property are maintained and shall have sole responsibility and authority for property valuation maintenance, under the direction and oversight of the State Board of Equalization.
An assessment roll is produced annually listing all improvements of property added to valuation records during the year, additions of new property to valuation records during the year, and increases and decreases of valuation during the year. The assessor also monitors the relationship of sales prices of property sold to values of the property for property taxation purposes and the current status of the overall property valuation maintenance program in the county.
In order to achieve successful implementation and completion of this operation plan all requirements and provisions regarding property valuation and maintenance will be performed in compliance with the Tennessee Constitution and Statues recorded in the Tennessee Codes Annotated. Additionally, the Rutherford County Assessor’s Office ensures that all appraisal methods and techniques will adhere to standards and code of ethics of the International Association of Assessing Officers and the Uniform Standards of Professional Appraisal Practices (USPAP).
In order to fulfill this State mandated duty the Assessor is reliant upon the County Commission to provide sufficient funding and support. The County Commission has agreed to provide such support by approving the four year reappraisal plan submitted to the State Board of Equalization.
The following is a brief description of the various duties, functions, and procedures that each department within our office is responsible for accomplishing the yearly cycle. Many duties are indirectly related to the valuation of a property. However they are required to complete the entire assessment process. The program can only be implemented and successfully completed with an adequate budget, and proper management of employees, time, and resources.
Approximate Time Frame of Completion: January 2 to May 31
Persons Responsible: Assessor, Department Directors, Administration Coordinator
Summary: The Assessor develops three budgets to conduct our operation: the “Assessor’s Administrative” and the “Board of Equalization Budget” which are funded solely by the county; and the “Reappraisal Budget” which is cost shared with the municipalities by statute. TCA 67-5-1601 (C) (2)
Goal: To obtain adequately funded budgets and other resources necessary to complete a comprehensive, fair and equitable valuation maintenance plan, while ensuring accountable and efficient use of those resources and taxpayer revenues.
Supporting Information:
With the formal submission and adoption of the County Reappraisal plan every Four years following the quadrennial reappraisal; the County Commission affirms its commitment to fund the property Assessor’s office at a level to accomplish the plan. The Plan is then submitted to the State Board of Equalization and becomes binding. The annual operating budget will provide an adequate allocation of funds to the county Property Assessor for the purpose of fulfilling the responsibilities for property valuation, appeals administration and parcel maintenance.
Historical Budget Data:
Approximate Time Frame of Completion: January 1 to December 31
Persons Responsible: (1)-Director of Commercial Appraisal and Records Management, (1)-Deeds Processor (2) Cross trained Assistants Processors
Summary: Legal documents that transfer ownership in real property such as deeds are recorded in the Register of Deeds Office. Copies are provided to the Assessor’s office. Assessor’s records must be updated to reflect the current owner’s name and mailing address to ensure assessment to the correct owner. Various documents are filed and processed throughout the year, therefore this process is continuous.
Procedures:Goal: Enter all transfers in to database within two weeks of Register of Deeds filing date, and minimize data entry errors. Ensure that all transfers are completed prior to preparation of mailing the Assessment Change Notices (typically Mid April) so that the current owner of record receives the notice.
Approximate Time Frame of Completion: January 1 to December 31
Persons Responsible: (2)-G.I.S. Analyst, (1)-Mapping Coordinator
Summary: Plats and other legal documents that initiate a change in to the legal boundaries of a parcel or parcels are typically filed and processed throughout the year. The assessor’s office receives copies of the documents and is responsible for creating and maintaining parcel based tax maps from the recorded documents. Assessment maps are essential in defining the location, shape and size of each parcel of property that the assessor is responsible for valuing for property assessments. Documents are filed throughout the year from various sources such as developers, title companies, and individuals. This is a continuous process, and the assessor’s office mapping department must stay current with the creation and merge of parcels in order to properly assess the correct owner of record for the appropriate tax year.
Procedures:
Goal: Update all records and maps each year prior to mailing Assessment Change Notices for the upcoming tax year. Complete with minimal to no errors.
Supporting Information:
The Rutherford County Property Assessor’s office uses a Geographical Information System (GIS) to maintain the county’s cadastral (Tax) map. A GIS is a computer-based tool used for mapping and analyzing natural and manmade features on the surface of the earth.
The cadastral map (Parcel layer) is the land record for the Assessor’s office and is the base layer of Rutherford County’s spatially integrated GIS.
The GIS is integrated with the Assessor’s office CAMA system. The CAMA system is able to more accurately value properties as they relate to each other geographically, and assure that properties are being valued fair and equitable.
GIS maps assist assessor’s appraisers with neighborhood designations and value comparisons. Appraisers are able to analyze markets, create reports and statistical data with GIS maps. Other county departments are also able to use the Assessors’ GIS to assist them in their work endeavors. Common records processes such as searching and sorting through records is made easier because of the CAMA system and its mapping interface.
Approximate Time Frame of Completion: January 1 to December 31
Persons Responsible: (3)-Directors, (2)-Senior Appraisers, (8)-Appraisers, (2)-Commercial Appraisers, (1)-Manufactured Housing Auditor (4) Personal Property Appraisers, (2) IT Specialists
Summary: The Office of the Rutherford County Assessor is statutorily responsible for and authorized to value property subject to valuation for property tax purposes. This includes all real property, business personal property except for property that is assessed by the Office of State Assessed Property(.These properties include: railroad, communications systems, pipelines, airline and public utilities, etc.)
The assessor shall also implement a program of updating property values so that current and correct values of property are maintained and shall have sole responsibility and authority at the county level for property valuation maintenance.
Property has a taxable situs in the state if it is real property located in the state, it is an interest in real property located in the state or it is business personal property present in the state on January 1 of each year, the official date of property tax valuation.
Property that is not subject to valuation for property taxation purposes. TCA 67-5-212, belonging to another government agency a religious, charitable scientific or educational institution will be noted and maintained by the Assessors office. All taxable property is to be valued at market value, unless the property is assessed with a special valuation method.. Market value is determined by the sales comparison, income, or cost valuation method, or any combination of methods. The methods for appraising properties must employ generally accepted appraisal techniques.
The Rutherford County Assessor’s Office is currently employing a four year reappraisal cycle. Employing a four year cycle is a tremendous undertaking by the office. However, this cycle is most beneficial to the taxpayer. In a rising real estate market it means smaller increases. In a decreasing or stagnant market valuations may be lowered every four years, and result in a more current and fair assessment for the owner/ taxpayer. Values not supported by current market conditions and sales may be challenged each year at the County Board of Equalization in June.
Procedures Directly Associated to Valuation:Tennessee Code Annotated 67-5-903 notes; all partnerships, corporations, or other business associations not issuing stock and individuals operating for profit as a business or profession, including manufacturers, except those that are assessable by the comptroller of the treasury, shall be furnished by the assessor not later than February 1 of each year, a schedule requiring the taxpayer to list in detail all tangible personal property owned by the taxpayer and used or held for use in such business or profession, including, but not limited to, furniture, fixtures, machinery and equipment, all raw materials, supplies, but excluding all finished goods in the hands of the manufacturer and the inventories of merchandise held for sale or exchange, such schedule to be approved by the director of property assessments.
Every business in Rutherford County is appraised each year. Tangible Personal Property Schedules are mailed out by February 1 of each year to every business in Rutherford County. It is the duty of the taxpayer to list fully such tangible personal property used, or held for use, in the taxpayer's business or profession on such schedule. The schedule should be completed, signed, include attachments, and return it to the assessor on or before March 1 of each year. A taxpayer who fails, refuses or neglects to complete, sign, and file the schedule with the assessor of property shall be deemed to have waived the objections to a forced assessment. To determine a forced assessment, the assessor shall consider available evidence indicative of fair market value of property assessable to the taxpayer.
A great deal of public assistance is required at this time. This period is the busiest time of year for "walk-in" traffic by the public and phone calls.
Schedules along with asset listings or depreciation schedules are desk audited and the information is entered into database and generates a value for assessment & taxation purposes. Values are finalized by April 30th of each year and an Assessment Notice of value is mailed before May 20th as required by law.
Data Entry is required throughout the year to add new businesses, make address changes, ownership transfers, and to obtain new appraisals for each business every year. Appraisers and Support personnel complete data entry of all information acquired from field work.
Directors and Quality control specialists perform quality control measures. After all appraisal work has been completed for each year and prior to the Assessment Change Notices being mailed, data is processed for errors. This is necessary in order to prevent major problems prior to mailing of Assessment Change Notice, avoid additional costs, and provide the business owner with an accurate valuation.
According to statute, the assessor shall give the taxpayer notice of their appraised value by United States mail, addressed to the last known address of the taxpayer or the taxpayer's agent at least 10 calendar days before the local board of equalization commences its annual session beginning on June 1. Each year, every business will receive an Assessment Change Notice. This notice is the culmination of the assessor's responsibilities and efforts and without this effort; Rutherford County Government would not have the necessary funds to provide its state mandated services.
The Assessment Change Notice informs the business owner of the appraisal determined by the assessor's office for property tax purposes.
The owner of the business or their representative (licensed appraiser, tax consultant, or attorney) is afforded the opportunity to protest their appraised value before the County Board of Equalization which meets generally the first week of June each year. They are required to present a completed schedule at the appeal.
Appraisal staff field reviews any businesses that may have a question that cannot be answered from the office. Appraisers resolve all errors or questions and return the information to the office for data entry.
Each year, from the State of Tennessee Division of Property Assessments, we receive a listing of businesses that we are to perform a detailed audit. The auditor is required to perform the book audit, make a walk-through of the business, maintain records and take the audit through certifying the assessment to the trustee or to a court hearing, if necessary.
Final values arrived at by the assessor's office are given to the Trustee's Office for tax billing and collection of taxes. The assessor's office assists the trustee with taxpayer's questions regarding valuations, locations, mailing addresses, and previous and current owners. This office works closely with the County Trustee's Office as well as the County Delinquent Tax Attorney's Office to assist with information to allow them to collect tax dollars.
Manufactured Home Valuation & Tax Releases (January 2 to December 31):
MH Appraiser is responsible for field checking and collecting data on MH’s for valuation as stated in T.C.A. 67-5-501. Cost tables will be updated yearly. A manufactured home may be assessed and taxed as real property if permanently affixed to the land and certain other criteria are met as outlined in statutes.
Supporting Information:The sale comparison approach is most suitable when there are numerous and frequent sales of similar properties. This approach is widely used in the appraisal of single-family residential properties and vacant land. The reliability of the sales comparison approach rests on the number and quality of available sales. When sufficient and valid sales are available, this approach tends to be the preferred valuation method.
The income approach is the best method to use when dealing with income producing properties. This approach recognizes that potential investors demand property because they anticipate a future income stream.
Approximate Time Frame of Completion: (February 1 to April 1)
Persons Responsible: Assessor’s IT Specialist, appraisal staff
Summary: After all appraisal work has been completed for each year and prior to the Assessment Change Notices being mailed, data is processed for errors. This is necessary in order to prevent major problems prior to mailing, avoid additional costs, and provide the property owner with an accurate and valid valuation.
Procedures:
Approximate Time Frame of Completion: April 1 to May 1
Persons Responsible: All assessors’ staff.
Summary: Assessors are mandated to mail all notices of net taxable value of the property to all property owners within 10 days of the meeting of the County Board of Equalization the first day June unless an extension has been granted by the State Board of Equalization. Every Fourth year every parcel in Rutherford County and every Personal Property Account will receive a Valuation Notice. The notice of value is the culmination of the assessor’s responsibilities and efforts and without this effort County Government would not have the necessary funds to provide its State Mandated Services.
The Assessment Change Notice informs the property owner of the valuation that is determined by the assessor’s office for property tax purposes. The owner of the property or their representative (licensed appraiser, tax consultant, or attorney) is afforded the opportunity to “protest” their valuation before the County Board of Equalization which meets generally the first two weeks of June each year. This period is the busiest time of year for “walk-in” traffic by the public and phone calls.
Procedures:Mail Assessment Change Notices (May 1 or before): Directors and Assessor’s IT Specialist collaborate and ensure that all notices are mailed as scheduled. In a reappraisal year that could mean as many pieces of mails as 125,000 pieces of mail from Jamuary1 to May1 currently.
Approximate Time Frame of Completion: June 1 to June 15
Persons Responsible: Assessor, Directors, Senior Appraisers, Appraisers, Assessment Staff and County Board of Equalization
Summary: Each year property owners or their representative may appeal the value or classification determined for their property by filing an appeal with the County Board of Equalization in June of the year of valuation. Rutherford County typically mails notices on or around April 15th of each year. The assessor may mail within 10 days for June 1st.
Goal: Successfully resolve all protests prior to September 15, (before the tax roll is generated)
The Rutherford County Assessor’s Office is the only Assessor’s office in the State of Tennessee which prints, proofs, inserts, sorts and mails the tax notices for every taxing jurisdiction. Every in late August or early September, we begin to balance the tax rolls with the Trustee and the finance offices of the four municipalities within Rutherford County. Depending upon the number of mortgage company electronic billings the office produces over one hundred thousand pieces of mail for property taxes. This usually requires the cooperation of our I.T. person as well as two to three other support staff. The OIT department is heavily involved as well and helps make this process as seamless as possible.
In order to accurately and professionally accomplish the mandated duties of the office, the Assessor must hire educated, experienced, and motivated individuals and provide continuous training and continuing education in the field of real and personal property appraisal. Having well trained and professional individuals in other facets of the duties of the office is equally important and essential to our office.
Under TCA § 67-1-508(c)(3), the issuance of certificates and incentive pay is authorized upon completion of professional designations. Appraisal certification ensures adequate knowledge of the principles of property appraisals, assessment techniques, and property tax laws. Certification also enhances an individual’s and the public confidence in the work being performed by the assessor office.
The Rutherford County Property Assessor’s Office has agreed to participate in the certification program stated above as well as provide for merit and performance based salary reviews. These increases are included in the assessor’s budget requests annually.
Nationally recognized designations which are available through our membership in the IAAO are being actively pursued by the Assessor as well as others within the Assessor’s Office. The Assessor’s goal is to re-classify the appraiser’s position and compensate them accordingly once a designation is attained.
Property Assessors and their staff should be very familiar with traditional appraisal methods, real estate markets, and local conditions. Other technical and professional skills needed are: statistical skills for building and applying statistical models, management skills for recruiting, training and directing staff, data processing skills for designing and maintaining computer programs, and public relation skills for dealing with the public and the media.
Our employees possess skills in administration, mass appraisal, mapping/GIS, and personal real property appraisals. Our employees are able to appraise/develop values for all property types within Rutherford County, and are able to defend those values at every level of appeal. Continuing training and education is a major resource for the success and performance of the office, and highly recommended. These skills are not easily developed and come with a financial cost which, in the interest of the citizens of Rutherford County, must be met.
The following is a listing of the County Assessors’ staff by primary function:
The Assessor and the three Directors are responsible for all valuation maintenance and reappraisal programs. They will be responsible for implementing administrative policy, enforcing procedural and quality control standards, directing, training, and assigning duties to temporary personnel and performing the other statutory ongoing administrative duties.
The Assessor believes that education should be an ongoing program and it only strengthens the valuation program. The County Board of Equalization and Administrative Judges rely upon the level of professional expertise of an appraiser. Therefore, all assessment personnel are encouraged to attend appraisal courses provided by the State of Tennessee and any licensing or certification program with prior approval of the Assessor. This will benefit Rutherford County by successfully defending valuation protests that ultimately impact county budgets.
The second essential component of a proper valuation maintenance program is the requirement for periodic re-inspection of all properties. Rutherford County has adopted and enacted a Four Year reappraisal program with the approval and under the supervision of the State Board of Equalization. This re -inspection is in conformance with the professional standards of the International Association of Assessing Officers. The main function of these inspections is to verify and update existing information and discover improvements to properties that are not currently on the tax schedule.
The office completed the last phase of the last re-appraisal project that was begun in 2014. Work included field verifying, collecting data, and reappraising the last remaining properties to be inspected, including:
1. Manufactured Homes
2. Residential Condos
3. Commercial Improved Properties
4. Agricultural & Forrest Properties
Starting January 2015, the Assessor will begin implementing three year re-inspection plan utilizing in house staff. The plan involves reviewing & re-inspecting both residential and non-residential accounts each year of the plan to achieve total coverage of 102,000 real property accounts in Rutherford County.
Our Approach
In regards to the approach to be used for county-wide inspection, new technology will be available in this 4 year plan previously unavailable in the past.
The first will be the introduction of oblique, side-view imagery of most of the improved portions of the county acquired in March of 2015 by Pictometry. This technology will greatly reduce the need for a physical door-to-door review. Most properties can be adequately inspected from exterior conditions visible in the photos. Assessor Rob Mitchell plans on contracting for new photos in every two years.
The second will be the introduction of oblique aerial and specialized software too that visually compares two sequential acquisitions of oblique imagery for changes in existing building footprints or new building footprints. The tool is called “Change Finder” and is also provided by Pictometry. This tool will make it much easier for the office to identify unreported, improved properties without field inspection. For properties that are not included in the photo project, or for hard to view properties, a field inspection will be required by staff appraisers.
Year 1 - 2015
The plan require the review of roughly 34,000 parcels in year one. This area will contribute roughly thirty percent of the accounts for review. As resources permit, more accounts will be inspected by including properties immediately adjacent in sectors to be reviewed. The first year may require a higher administrative load than future years, and for that reason, is preparing for higher than average loads in future years to compensate. Details are as follows:
Starts: January 1, 2015
Ends: December, 31, 2015
Work Days: 227 (excluding holidays, and estimated vacation and sick leave days, inclement weather)
Appraisal Staff: 15 total (9 Residential - 1 Director, 8 Appraisers) & (5 Commercial – 1 Director,4 Appraisers)
Property Count: 34000 Total (numbers are subject to change)
Year 2 - 2016
The second year will review of roughly 34,000 parcels. This area will contribute roughly thirty percent of the accounts for review. As resources permit, more accounts will be inspected by including properties immediately adjacent in sectors to be reviewed. Details are as follows:
Starts: January1, 2016
Ends: December, 31, 2016
Work Days: 227 (excluding holidays, and estimated vacation and sick leave days, inclement weather)
Appraisal Staff: 15 total (9 Residential - 1 Director, 8 Appraisers) & (5 Commercial – 1 Director,4 Appraisers)
Property Count: 34000 Total (numbers are subject to change)
Quantities Necessary to Complete the Project With in the Allotted Time:
A per day ratio for review of properties is as follows:
34000 / 227 = 150 per day overall, 150 / 15 = 10 per person per day
While these numbers are not low, we believe they are attainable. They may fluctuate due to other factors affecting the project for this particular year
Year 3 - 2017
The third year will review of roughly 34,000 parcels. This area will contribute roughly thirty percent of the accounts for review. As resources permit, more accounts will be inspected by including properties immediately adjacent in sectors to be reviewed. Details are as follows:
Starts January 1, 2017
Ends: December, 31, 2017
Work Days: 227 (excluding holidays, and estimated vacation and sick leave days, inclement weather)
Appraisal Staff: 15 total (9 Residential - 1 Director, 8 Appraisers) & (5 Commercial – 1 Director,4 Appraisers)
Property Count: 34000 Total (numbers are subject to change)
Quantities Necessary to Complete the Project With in the Allotted Time:
A per day ratio for review of properties is as follows:
34000 / 227 = 150 per day overall, 150 / 15 = 10 per person per day
While these numbers are not low, we believe they are attainable. They may fluctuate due to other factors affecting the project for this particular year
Year 4 - 2018
The fourth year is the year in which we will begin to establish base rates for the various categories of property. New properties will be picked up as they are constructed and we will spot check each assessment zone for changes and accuracy prior to our final value meeting with the State Department of Property Assessments. A final assessment value will be calculated and presented to each governing body within Rutherford County. That legislative body will calculate a revenue neutral rate for that year and submit it to the State Board of Equalization for concurrence. A reappraisal plan for the following four years is prepared by the Assessor and presented to the Rutherford County Commission for approval. Once adopted by the County it is submitted to the State Board of Equalization and becomes binding.
