Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, January 23, 1993 TAG: 9301250239
SECTION: VIRGINIA PAGE: A-3 EDITION: METRO
SOURCE: JOEL TURNER STAFF WRITER
DATELINE: LENGTH: Medium
ECONOMY KEEPING TAXES FLAT, LOW
There is a positive side to the weak economy for Roanoke Valley homeowners.Real-estate assessments will remain the same for half of the city's property owners in the next year.
And the assessed values for most other homes will increase by only 2 percent to 3 percent.
Because of the flat real estate market, the assessments will increase by the smallest amount in many years, said Will Claytor, director of real estate evaluation.
A 2 percent increase on a $50,000 house - the median value of homes in Roanoke - would mean an increase of about $1 a month in real estate taxes.
"Our assessments this year are going to be a direct reflection of the soft real estate market," Claytor said.
Most Roanoke County homeowners also should see the slower real estate market reflected in their reassessment notices.
The average value of residential property in the county rose 2.53 percent in the 1993 reassessment, down from an average of 4.2 percent in 1992 and 5.9 percent in 1991.
John D. Willey, director of the county's Real Estate Assessment Department, said notices have been mailed to all property owners, even those whose property had no change in valuation.
Willey and Claytor both said there had been a large increase in the volume of real estate sales, but no corresponding increase in prices.
The increase in assessments closely parallels the rise in sale prices.
According to the Roanoke Valley Association of Realtors, there was a 3.2 percent increase in the average sale price for homes in Roanoke from 1991 to 1992.
Recent plant closings, job cutbacks at Dominion Bankshares Corp. and other bad economic news have hurt the real estate market, Claytor said.
The new city assessments will be mailed to property owners Jan. 29. Notices will be sent to nearly half the city's 44,000 property owners; notices will not be sent to those whose assessments remain the same.
Claytor said the increases are small even in affluent South Roanoke, where values climbed in recent years even as they leveled off in other neighborhoods.
"South Roanoke has traditionally been our price-increase leader, but it is no different this year than other neighborhoods," he said.
Claytor said there are no hot spots where values are increasing significantly faster than in other neighborhoods.
The assessments are supposed to be based on 100 percent of fair market value. City appraisers use recent sales prices to help determine the assessed values.
The latest study by the state Department of Taxation showed that, on average, property in the city was assessed at 92 percent of its market value.
But Claytor said the study was based on 1990 sales and assessments.
Claytor said his own study shows that the city's assessment ratio is now closer to 95 percent.
Assessments have decreased in some cities across the country because of the weak economy, but Claytor said he has seen no evidence of that in Roanoke.
Staff writer David M. Poole contributed information to this story.
\ ROANOKE VALLEY TAX ASSESSMENTS\ \ How 1993 reassessments could affect valley homeowners. Based on average\ residential increase in each locality - 2 percent in Roanoke and 2.53 percent\ in Roanoke County. Specific properties might have bigger or smaller changes in\ value. This also assumes no change in tax rates - $1.25 per $100 assessed value\ in Roanoke and $1.13 in the county.\ \ ROANOKE ROANOKE COUNTY\ $50,000 house\ Current taxes: $625 $565\ New value: $51,000 $51,265\ New taxes: $637.50 $579.29\ Tax increase: $12.50 $14.29\ \ $70,000 house\ Current taxes: $875 $791\ New value: $71,400 $71,771\ New taxes $892.50 $811.01\ Tax increase: $17.50 $20.01\ \ $100,000 house\ Current taxes: $1,250 $1,130\ New value: $102,000 $102,530\ New taxes: $1,275 $1,158.58\ Tax increase: $25 $28.58