Limited Market Value
The 1999 legislature amended the law that limits how much an assessor’s market value for residential use properties is permitted to increase from one year to the next, for purposes of determining property tax bills. Accordingly, the limited market value and taxable market value may be different than the assessor’s estimated market value, depending on the magnitude of the property’s value increase. Limited Market Value was to expire with the 2002 assessment. However, legislation passed in 2001 extended the limited market value for 5 more years and established a schedule for the phase out. Subsquently, legislation passed in 2005 further extended the limited market value for an additional 2 more years and amended the schedule for phase out as follows:
- 2002 Assessment
- Increase shall not exceed the greater or 10% of the value in the preceding assessment or 15% of the difference.
- 2003 Assessment
- 12% over 2002 or 20% of the difference, whichever is greater.
- 2004 Assessment
- 15% over 2003 or 25% of the difference, whichever is greater.
- 2005 Assessment
- 15% over 2004 or 25% of the difference, whichever is greater.
- 2006 Assessment
- 15% over 2005 or 25% of the difference, whichever is greater.
- 2007 Assessment
- 15% over 2006 or 33% of the difference, whichever is greater.
- 2008 Assessment
- 15% over 2007 or 50% of the difference, whichever is greater.
- 2009 Assessment
- Limited Market Value scheduled to expire.
The market value limitation does not apply to the value of improvements or new construction.
If your property has a limited market value, it will be reflected on your property value notice each year.
