Property tax assessment on foreclosures
Hi all, I bought a small 2/1 SFR foreclosure for $12,900 in KY in 2009 that I renovated and is now a rental. The past several years the tax assessment has stayed at my purchase price as this area has not appreciated as other parts of the nation. Then this year they jumped my property value from $12,900 to $40,000.
I'm having an agent I know run some comps of current sales, but on it's own that is representative of almost a 30% per year appreciation rate or a 300+% single year increase in a market that is not appreciating. To be fair, it is would be worth more now that the renovations are done, however I'm told they do these evals as a "drive-by appraisal" so basically would not know what I have done anyway.
Is an unrealistic rate of appreciation a fair argument against the jump in property tax increases on a foreclosure? Or, is it typical that they just disregard a purchase price on a foreclosure after a while and set their own property values, as they appear to have done here.
Thanks!