Sedgwick County home property values increase ahead of transparency bill decision

Most Wichita-area homes increased in tax value again this year during a push by state lawmakers to make property taxes more transparent.

About 81% of residential properties in Sedgwick County increased in value. The increases averaged 6% compared to last year, according to the county appraiser’s office. Those values, combined with local levy rates approved by local elected leaders, help determine what residents pay in property taxes.

Sedgwick County Appraiser Mark Clark said the reason for the increases is that homes are selling faster and for more money than in the past, citing “a very strong imbalance between supply and demand in the residential market.”

“It is definitely a seller’s market,” Clark said during a recent presentation to the Sedgwick County Commission.

Property appraisals are hitting mail boxes this week. For most people, the increase means they will pay more in property taxes even if elected officials brag that they aren’t raising taxes. For 81% of the county’s homeowners, city, county or school district officials would have to decrease tax rates for their property taxes to stay flat.

Rising home values have fueled a push by state lawmakers to force local governments to be more transparent about property taxes. In the past five years, statewide annual revenues from property taxes have risen almost 18% and have more than doubled in the past 20 years, to more than $5.1 billion.

Under state law, a county appraiser’s office can increase the tax value for a home or business, causing a property owner’s taxes to rise without raising the local mill levy.

The Kansas Senate voted unanimously last month to prohibit local governments from increasing the amount of property tax revenue they collect without a public vote. They would also be required to hold a public hearing where residents can air their views.

The bill has yet to be taken up by the House.

Homes between $100,000 and $175,000 were on the market for an average of less than two weeks during peak season last year, Clark said. When homes are in high demand, values increase — not just for the sellers but for everyone in the neighborhood. That’s good for homeowners who want to sell but can also raise taxes for longtime homeowners on fixed incomes.

Clark said beyond the market conditions, the state is coming down on his office for slightly undervaluing homes last year.

“The state visited with us multiple times over the last year and encouraged us to raise values,” Clark said. “They thought that it was important to do so.”

The median sale price in the county last year was $169,900, up from $160,000 the year before. Most value changes were because of similar homes selling for higher amounts, new construction or people fixing up their homes, Clark said.

The appraiser’s office also took into consideration the Boeing 737 Max crisis, which has led to layoffs in Wichita and leaves the metropolitan area exposed to negative economic consequences, Clark said.

“We did take the 737 Max and supply-chain issues into consideration during the valuation process and setting final values. In fact, we curbed some of the increases for some of the sectors of the commercial market which would have otherwise had increases,” he said.

About 53% of commercial property increased in value and 19% decreased, according to the appraiser’s office.

Notices went out this week to about 174,00 property owners in Sedgwick County.

Just over 40% of the property taxes Wichita homeowners pay goes to the Wichita Public Schools USD 259. The city and county get between 25% and 30% each and the state of Kansas takes just over 1%.

For taxing purposes, the county appraiser’s office is responsible for placing a fair market value on properties. That number is supposed to be what a property would fetch on the open market.

Appraisers stress that they make their valuations based on the market and not on the budget needs of local governments. Appraisers act as an independent arm of local governments that answer to the state and aren’t responsible for budgeting or setting tax rates.

About 16% of residential parcels did not change in value and 3% decreased in value, according to the appraiser’s office.

How to appeal

Taxpayers have a right to contest the appraised values on property. If you think the appraiser got it wrong, there are two ways to appeal.

The first deadline for appeal is 30 days after the date on your valuation notice.

To contest the valuation of your home, file an informal appeal using the instructions included in the valuation notice envelope. If you choose to appeal, you must sign the form that comes with your valuation notice and send it back to the address listed within 30 days of the date shown on the notice.

Then, an informal meeting with an appraiser will be scheduled. Failure to appear at that meeting will forfeit the right of protest for the year. The last date for an informal meeting is May 15.

At the informal meeting, the county must provide evidence to support the property’s valuation. It’s also the taxpayer’s opportunity to explain why the county’s value is wrong.

Here are some ways to prepare for an appeal, according to the Kansas Department of Revenue:

▪ Get the county’s information. It could be useful to have the county provide a comparable sales report that compares your home to up to five others it considers similar in value. Ask for any information the county used to value your property.

▪ Gather your own information. One way to contest your valuation is to drive by the homes the county listed as comparable and take photos of things about the homes you think make them different (without trespassing). Google Maps is also a powerful tool for comparing properties.

According to the Kansas Department of Revenue, those images can be used as evidence during your appeal or hearing.

▪ If you bought your home within the past two or three years, bring a sales contract for your property. Also bring repair estimates of the cost to repair any structural damage the county may not have fully considered.

The county will mail you written results of the informal hearing. If you still disagree, you may be able to file another appeal with the state.

The second opportunity to contest your home valuation is submitting payment under protest in December. Protest forms may be filled out at the county treasurer’s office, 525 N. Main.

The appraiser’s office asks anyone with question to call 316-660-9000.

This story was originally published March 3, 2020 at 5:12 PM.