The significance of these new figures lies in their use. Local governments use Clark's valuations as a basis for computing property tax bills. Higher appraisals could signal higher tax bills although that outcome will not be decided until tax rates are set this spring. First, the tax rate must be reduced to produce the same amount of revenue as before the reappraisal. Government bodies then are free to immediately raise the rate, so it is too early to calculate the financial impact of Clark's update.
State law requires property taxes be based on the fair market value of real estate.
As a result, assessors are required to periodically reappraise to reflect ever-changing property values. Size alone makes this a considerable undertaking in Shelby County, where there are 320,000 pieces of residential, farm, commercial and industrial real estate. Complicating the task are broad variations typical in urban counties. 1-bath home in Millington. Shelby County began relying on computers in 1980 to churn out reappraisal figures based on sales records and data about the size and condition of each property.