Annual Reappraisals: 
A yearly equalization effort

AASB continues to testify against unraveling the yearly reappraisal schedule.  AASB delegates unanimously approved a resolution in 2005 to support annual property tax appraisals in anticipation of both statewide and local legislation.  Many local school boards already benefit from consistent, accurate revenue projections from yearly reappraisals and urge lawmakers to resist weakening those efforts.

Annual reappraisal eliminates inequities that are created over time by changes in the real estate market, ensuring fairness and equity for all property owners by accurately reflecting the fair market value of property.  Over time, a property’s fair market value can increase or decrease. If the record of a property’s fair market value does not change with the market, some people could pay too much in property taxes, while others could pay too little.

After subtracting implementation costs, the change to annual reappraisals is expected to generate an extra $448 million in tax revenue through 2010, according to the state Revenue Department's estimates.  That increase would provide $138.8 million to county governments, $171.5 million to schools, $83.3 million to city governments, and $54.4 million to the state.

Prior to 1971, appraisals were done every five years because it was physically impossible to do them more often.  Times have changed and yearly growth now can be projected and assessed.  Local governments and local schools benefit from the actual growth and value of property.

Because opponents united and acted quickly to voice strong objections last year,
lawmakers recognized the negative impact to local schools and communities if revenue increases are delayed. While they intended to help local taxpayers, the impact on individual taxpayers would be minimal while the negative impact on local schools are far greater.  Anticipating yearly revenues enable schools to make short- and long-term budgetary plans.  Some school systems have already committed to debt service relying on those anticipated revenues. 

Alabama already has some of the lowest property tax rates in the country, and forbidding the collection of those dollars until every fourth year would add insult to injury. 

                                                                                                                                                                                                                                                                                                                                                                                                                        Revised 2007