For most it is a surprise to learn that the property tax cycle is actually a two-year cycle. Yes...during the first year the property is assigned a value that reflects its value as of the first day of that year. During the second year the property tax bills are calculated and mailed and payments are distributed to local taxing districts.

This two-year cycle can be divided into six key steps.

Assessment

All of the property is discribed, listed, and, appraised so that values for property tax purposes can be determined. County Property Appraisers determine most property values and the county tax assessment officer ensures that assessment levels are uniform and at the legal assessment level by applying a uniform percentage increase or decrease to all assessments in the jurisdiction ( i.e., assessments are "equalized").

Review of Assessment Decisions

County reviews determine whether local assessing officials have calculated assessed values correctly, equalize assessments within the county, assess any property that was omitted, decide if homestead exemptions should be granted, and review non-homestead exemption applications. Property owners may appeal unfair assessments to their local county tax authorities.

State Equalization

The State Department of Revenue equalizes assessments among counties and issues a state equalization factor for each county.

Levy

Taxing districts determine the amount of revenues that they need to raise from property taxes, hold any required public Truth-in-Taxation hearings, and certify levies to the county clerk.

Extension

The county clerk applies the state equalization factor, calculates the tax rate needed to produce the amount of revenues each taxing district may levy legally, apportions the levy among the properties in a taxing district according to their equalized assessed values so that tax bills can be computed, abates taxes as directed by taxing districts, and prepares books for the county tax collector.

Collection and Distribution

The county tax collector prepares tax bills, receives property tax payments from property owners, distributes taxes to the local government taxing districts who levied them, and administers sales of liens on real estate parcels due to nonpayment of taxes.

About the Author: Steve James, Johnson County Property Appraiser