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Property owners typically dread a revaluation of property for tax purposes because they fear that property taxes will increase. Change always includes a degree of unknown consequences. However if the tax assessor and local officials do an adequate job of community relations they can explain that if assessed values rise the tax rate can be lowered to offset a portion or all of the anticipated tax increase. Real and personal property taxes are the result of multiplying the assessed value by the local tax rate per $100 or per $1,000 of assessed value. As such if property values increase, the rate of taxation can be decreased. On the other hand, if assessed values declined, as they have in the last few years, the tax rate may need to increased to pay for essential services like police and fire protection and schools. Concerned citizens should follow the budget process for the community to stay informed about property tax issues.

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Q: Why do property owners normally dread a new tax valuation?
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