Additionally, Vision is planning on changing how the depreciation is set on properties. The past
approach at setting depreciation unfairly impacted older neighborhoods. The City and Vision have
not been forthright with information on this correction.
Another challenge in creating accurate assessments is distributing the tax burden between
commercial and residential properties. In the past, residential owners cried foul when the tax
burden sharply shifted, throwing it on the backs of residential properties. In 2018, the hired
appraisal company applied an income approach to value commercial properties and balanced the
tax burden between commercial and residential owners.
For the 2022 revaluation, Vision is collecting two years of commercial sales data and 1 year of
residential sales data. The Pandemic negatively impacted many businesses. In 2018, the
commercial property vacancy rate was only about 4%. The City has offered no information on
2021 commercial vacancies. Given the number of businesses that closed or saw lost
income, residential owners will carry the burden created by these pandemic losses.
Many residential property owners saw their personal incomes decline during the pandemic.
However, their property assessments will be increasing. These values will be based on real estate
sales (not an income approach} and in this high demand, short supply market, prices are soaring.
Before the Mayor and Board of Aldermen vote on any budget increase and further spending, they
should make sure we all understand what is going to happen when Vision presses the recalculate
button. Let’s have a candid discussion now about what the City expects in assessment changes
and tax rate increases for 2022.
