Assessing Info -- August 22, 2024

In New Jersey, tiny farms 'gaming the system' can earn big tax breaks for wealthy estates
   A six-decade-old tax break intended to help struggling farmers has long been a target of critics who say it's been co-opted by wealthy suburban landowners.
   Now, there's a push to tighten its loopholes.
   New Jersey lawmakers approved the Farmland Assessment Act of 1964 to help farms that were being squeezed out of business as demand for suburban housing drove up land values — and the taxes that went with them.
   Today, about 35,000 landowners enroll some part of their properties in the program, which can discount a real estate tax bill by up to 98%. Complaints about alleged abuses have been around almost as long as the program itself. Read more

Towns struggle to recruit building officials, tax assessors, and engineers
   Connecticut towns are struggling to fulfill particular job titles, including building inspectors, engineers, and assessors, according to a draft report by the Connecticut Conference of Municipalities.
   According to the report, CCM received responses from 39 municipalities of varying sizes who indicated which positions they face the most difficulty filling.
   Part of the problem is a basic lack of applicants, with nearly 89% of responders saying there is little interest in these jobs, according to the survey. Read more

A look at property taxes and ‘doom loop’ risks

in the U.S. and Canada
Falling downtown office values can cause property tax revenue shortfalls, leading to declining maintenance and services, which will exacerbate outmigration, loss in value, and urban decay – better known as an “urban doom loop.”

Many jurisdictions have flexible tax policies that adjust rates when values drop, meaning there is no net loss of revenue – but there is a shift in tax burden between properties.

The greater the reliance on property tax, and the greater portion of that tax that comes from office and retail properties, the greater the risk of a doom loop. Read more

IAAO NEWS

International Research Symposium to focus on assessment innovation, collaboration, and AI
   Assessment innovation and collaboration with a focus on artificial intelligence (AI) will be the subject of the International Research Symposium, Dec. 4-5 in Amsterdam at the Kimpton DeWitt Amsterdam. Registration for the event, hosted by IAAO and the International Property Tax Institute (IPTI) is now open.
   The IRS plans to showcase the latest research and developments that have tangible impacts on property tax appraisal accuracy and efficiency. Speakers will be from around the world, representing Canada, the Netherlands, Poland, Serbia, the United Kingdom, and the United States.
   Full details on programs are in the schedule. The registration fee for IAAO or IPTI members is €480 and €590 for nonmembers. A special hotel single rate of €204 plus tax per night, including breakfast, is available at the Kimpton DeWitt Amsterdam.

Annual Conference starts Sunday; 1,700

expected in Denver

The IAAO Annual Conference starts on Sunday in Denver and to help the expected 1,700 participants, IAAO is offering a mobile app which is available to download.

Use the conference mobile app (Cvent Events) for the latest schedule information, conference updates, and to connect with other attendees.
Attendees received an email with a link to download the app, or you can download the Cvent Events app from the Apple App Store or the Google Play Store. After you download the Cvent Events app, search for “2024 IAAO Annual Conference.”

Take part in a wellness challenge during conference
Join the IAAO Wellness Challenge at the 2024 Annual Conference in Denver and enjoy some healthy fun with your peers as you work your way up the leaderboard and earn chances to win prizes.
To participate in the Wellness Challenge, download the free "Heka Well" Challenge app and select "IAAO Wellness." The Challenge starts at 12:01 a.m. on Sunday, Aug. and ends at 11:59 p.m. Wednesday, Aug. 28.

IAAO offices closed on Friday, Aug. 30
About 1,700 attendees, exhibitors, and IAAO staff will be in Denver for the IAAO Annual Conference Aug. 25-29.
Most IAAO staff will be onsite during the conference, however, the office will still be open during the week. In recognition of the hard work of the staff before and during the conference, the office will be closed on Aug. 30. We look forward to returning to serve you on Tuesday, Sept. 3.

September webinar on small jurisdictions’ answer to ratio studies
   You don’t always need a large budget to perform a ratio study.
In the September IAAO webinar, "Small Jurisdiction's Answer to Ratio Studies," you will learn the ins and outs of using Excel to perform a ratio study.
   The webinar, set for noon Central on Wednesday, Sept. 4, will be presented by Alan Dornfest, AAS, FIAAO, and is eligible for 1.5 CEU hours. The cost is $55 for IAAO members and $77 for nonmembers. Register here.

Register now for Legal Seminar in Chicago
   Registration is open for the IAAO Legal Seminar, set for Dec. 12-13 at the Swissotel in downtown Chicago. The theme for the seminar is "Navigating Change," and attendees will hear from industry experts on legal topics of interest to members of the assessment and property tax industry.
   Full session descriptions and a brochure will be available in September. Attendees will receive IAAO continuing education credits and IAAO will file for Continuing Legal Education credits for attendees requesting CLEs by Oct. 1.

MEMBER CONNECT CORNER

Hot topic: utility trailers

IAAO Connect members are talking about finding guidance and information on the valuation of utility trailers. Read more

AROUND THE INDUSTRY

Tax discussion highlights tension between residential and agricultural property owners
   Testimony to a South Dakota legislative committee last week highlighted a growing divide between the property tax payments of residential and agricultural property owners.
   Lawmakers on the state’s Study Committee on Property Tax Assessment Methodology heard from county directors of equalization and lobbying groups.
   People who own the house they live in are described as the “owner-occupied” class of property taxpayers. Matt Krogman, lobbyist for the South Dakota Association of Realtors, said those homeowners are bearing the brunt of tax increases. Read more

Offshore ownership of American real estate is a black box. The Treasury has the power to open it.

American real estate is likely to be a popular destination for dirty money from abroad.

Because billions of dollars worth of property is held through opaque corporate structures, policymakers and civil society have little sense of how much foreign investment there is in real estate. Read more

Homeowners told they won't get property tax refunds because the money has already been spent

   KANSAS CITY, Mo. – Thousands of residents in Jackson County, Missouri are frustrated as county leaders say there will be no refunds after homeowners filed appeals in the 2023 property tax assessment.
   County leaders said the money has already been spent.
   Jackson County is in the westernmost part of Missouri, bordering Kansas. As of the 2020 census, the population was 717,204.
   An unprecedented 54,000 property owners appealed their property evaluations last year, and more than 10,000 of those appeals are still unresolved. Read more

Punjab introduces new property tax formula

India's Punjab Excise, Taxation and Narcotics Control Department (PETSCD) has approved the implementation of "tax amount" for property tax based on the official price fixed by the Deputy Commissioners (DCs) for the purchase and sale of all types of property across the province under the new tax formula. Read more

Where is the property tax relief from Nebraska casinos?

After voting to legalize casinos in 2020, many Nebraskans are wondering why they haven’t seen property tax relief yet.
The Nebraska Legislature expected that in fiscal year 2022-23, casinos would bring in about $34 million for property tax relief. But in reality, the casinos fell far short, only generating $8 million. Read more