Four out of five Sedgwick County homeowners will see tax appraisals increase again

Four out of five Sedgwick County homeowners will see higher tax appraisals when notices are mailed out March 1.

“In a very hot market, demand exceeded supply for homes, and prices, they went up,” County Appraiser Mark Clark told the County Commission on Wednesday.

Tax appraisal increases are driven by sales of new and existing homes.

The median sale price for a home in Sedgwick County increased to $225,000 from $203,000 in 2021, which was the first time the median price point had topped $200,000.

As a result, tax appraisals will increase for 80% of homeowners, Clark said. The average median increase is 10%. Only 1% of the county’s 182,000 residential parcels declined in value.

Climbing valuations could lead to higher property taxes unless the County Commission lowers the mill levy, but property owners will have a chance to appeal appraisals.

Rising property values across the board have become the norm in Sedgwick County in recent years. Last year, 88% of residential property owners saw their tax valuations increase and 79% of property values rose in 2021.

Clark said Sedgwick County is in desperate need of more residential units to meet the demand of would-be home-buyers.

“It is said that in order to begin to impact that imbalance, we’d need 25,000 new homes and to really make a dent in it, it would take close to 50,000,” Clark said.

Home sales decreased by 13.7% in 2022, largely due to high inflation and rising interest rates.

Under state law, appraisers must inspect each county property every six years and reassess property value annually in a uniform and equal manner.

If property owners don’t think the appraiser’s estimate reflects market value, they can appeal by filling out the back of their value notices and returning them to the Sedgwick County Appraiser’s Office within 30 days.

Appeal meetings will be conducted over the phone beginning on March 16, but Clark said property owners could request an in-person meeting if they would prefer it.

Residential property accounts for about 60% of the total assessed value in Sedgwick County.

Commercial property accounts for another 29% with agricultural property making up less than 1% due to deeply discounted farmland tax rates.

Clark reported that commercial property sales decreased by 2.9% in 2022 but commercial sale prices remained high.

“There was not a sizable increase in commercial building permit activity because developers and business owners are being cautious during this economic time of high inflation, rising interest rates and continued supply chain issues,” Clark said.

Fifty-two percent of commercial property owners saw their tax valuation increase while 42% saw no change. By contrast, 59% of agricultural properties saw a decline in value.

Later this year, the county will set a budget based on the cost of providing government services and that determines the property tax rate, also called the mill levy. Property taxes can be calculated by multiplying the assessed value of a property by the mill levy.

Sedgwick County currently has the third-lowest mill levy in the state.