How can my taxable value go up when my assessed value goes down?
Over the years, the majority of property values in the City of Jackson have increased in value greater than the Consumer Price Index (CPI). However, many neighborhoods are now experiencing a decline in the market value. The 1994 constitutional amendment known as “Proposal A” requires that the taxable value increase by the CPI, however, it cannot exceed the assessed value.

Some property owners have a significant difference in the amount of their assessed values and taxable values. Assessed value represents 50% of the estimated property value. Taxable value is a mathematical formula that is based on the preceding year's taxable value increased by the CPI. The CPI is determined for the entire state and applied by each municipality. Taxable value may also increase for physical additions and decrease for physical losses.

The year after you purchase your home or lot, the taxable value is "uncapped" and becomes the same amount as the assessed value for that year only. Each year thereafter, the taxable value is adjusted by the IRM in the same manner as described above.

Proposal A mandates that the taxable value must be adjusted each year by the CPI. The assessed value is adjusted each year based on sales studies. Sales studies are based primarily on bona fide sales of similar homes in similar areas. The sales analysis may indicate that the market value should increase, decrease, or stay the same.

The taxable value cannot exceed the assessed value. For more information and additional details access Understanding Proposal A in a Declining Market (PDF) document (PDF).

Show All Answers

1. Why does my assessment change every year?
2. What is taxable value?
3. How can my taxable value go up when my assessed value goes down?
4. How do I find out about delinquent taxes?
5. How do I learn more about the Tax Foreclosure Auction?
6. Understanding Your Assessment Notice