Expect higher property assessments

    COUNTY – Shelby County residential and commercial property owners should anticipate a significant increase in their property valuations this year when receiving their valuations from the county assessor’s office in April.    Shelby County Assessor Tony Buman said this week based on 2020 sales of residential property, the number of sales and prices were strong.  The end result is that assessments in the incorporated communities, in particular, were about 10 percent too low compared to how they are selling.    “People probably shouldn’t be surprised if they get an assessment notice on a house for between a 15-20 percent increase,” Buman said.    Attractive loan interest rates and the higher price of construction materials during the COVID-19 pandemic are factors influencing higher selling prices,” Buman said.    Commercial property in Shelby County hasn’t seen a valuation change since 2012, but likely will be higher this year.  “We’re looking at somewhere between a seven and nine percent increase on those,” Buman said.    “It’s going upward based on sales during the pandemic.  I don’t think that’s going to be received well.”  Buman explained that state sales appraisals show the increase is warranted.    Agricultural valuations are based on productivity and a set five-year rolling average.  For the past six years those valuations have been dropping, but seem to be leveling off, said Buman.    “This year it’s not changing,” he said.  “We’ve kind of plateaued.”    Increased valuations doesn’t necessarily mean taxes on a property will be higher.  Buman reminds property owners that individual governmental entities set their levy rates, and if valuations bring in increased dollars, the levy could be lowered by the entity if those tax dollars aren’t needed.    Valuations are just one of the factors, he said.    Property owners can expect their valuations in the mail sometime after April 1.    “It’s going to be interesting sending those notices out,” Buman said.