Does the sale of a property change its taxable value?
For all properties sold during a year, the Taxable Value is “uncapped” and changed to the SEV of the property. There is no limit to amount of change in Taxable Value in the year after a property transfers. However, the next year the cap goes back on the Taxable Value. A property that has sold numerous times over the years will have a higher Taxable Value than a similar property that has remained with one owner, due to the repeated uncapping.
For all properties sold during a year, the Taxable Value is uncapped and becomes equal to the SEV of the property. There is no limit to the amount of change in Taxable Value in the year after a property transfers, however, the next year the cap goes back on the Taxable Value. A property that has sold more recently will likely have a higher Taxable Value, and therefore pay more in property taxes, than a similar property that has not transferred ownership.
