Commercial Assessment Averaging Program

flow chart of planned timeline

Example 1 – Property Increases more than 7.6% in 2021

Market Value 2020 Market Value 2021 Market Value 2022 Market Value 2023
$1,000,000 $1,300,000 $1,300,000 $1,300,000
Taxable Value 2021 Taxable Value 2022 Taxable Value 2023
Averaging $1,100,000 $1,200,000 $1,300,000

Example 2 – Property increases more than the threshold for three consecutive years

Market Value 2020 Market Value 2021 Market Value 2022 Market Value 2023 Market Value 2024 Market Value 2025
$1,000,000 $1,300,000 $1,675,000 $2,125,000 $2,125,000 $2,125,000
Value added from Year 1 $100,000 $100,000 $100,000
Value added from Year 2 $125,000 $125,000 $125,000
Value added from Year 3 $150,000 $150,000 $150,000
Taxable Value 2021 Taxable Value 2022 Taxable Value 2023 Taxable Value 2024 Taxable Value 2025
Averaging $1,100,000 $1,325,000 $1,700,000 $1,975,000 $2,125,000

Example 3 – Property increases less than the threshold

Market Value 2020 Market Value 2021 Market Value 2022 Market Value 2023
$1,000,000 $1,050,000 $1,100,000 $1,150,000
Taxable Value 2021 Taxable Value 2022 Taxable Value 2023
No Averaging $1,050,000 $1,100,000 $1,150,000