How did property tax changes from 2021–2024 affect homeowners with fixed or long-term tax assessments?
Executive summary
Between 2021 and 2024 many jurisdictions left long‑running assessed values in place while others completed multi‑year revaluations that recalibrated taxable values to more recent market conditions, producing large assessment increases in places like Maryland (average residential increases of 25.6% across a triennial group) and smaller year‑over‑year roll lifts in California counties (e.g., Riverside +7.11%, Orange +5.41% in 2024) [1] [2]. Homeowners whose properties carried “fixed” or long‑dated base assessments were insulated from immediate tax jumps until a reassessment or change‑of‑ownership reset the base year, after which annual increases are generally limited by statutory caps (California: CPI or 2% cap) or phased in over multiple years (Maryland’s three‑year phase‑in) [2] [1].
1. How assessment timing created winners and losers
Assessment cycles determine whether recent market gains translate into bills immediately. Jurisdictions that delay or stagger revaluations—Maryland’s three‑year group system is a prominent example—softened the shock by phasing increases in over three years, but still produced large cumulative adjustments (residential values +25.6% for one group) when those cycles caught up [1]. By contrast, places that reassessed annually or set new base years at transactions updated taxable values sooner; California maintains a base‑year system that freezes a property’s assessed value until a change in ownership or new construction triggers a new base year [2].
2. Why “fixed” assessments were temporary protection, not permanent relief
Many homeowners with assessments fixed by earlier revaluations benefited during 2021–2024 if market prices rose faster than local assessed values. That protection ends when a property changes ownership or receives qualifying new construction: at that point assessors establish a new base‑year value equal to fair market value and thereafter apply statutory annual factored increases—often limited to CPI or 2% in California—until the next trigger [2]. Available sources do not mention a single nationwide rule; the mechanics vary by state and county [2] [1].
3. Interaction between assessment increases and actual tax bills
An increased assessment does not mechanically equal a higher tax bill. Local tax levies are set separately; assessors apportion a tax levy across properties based on assessed values. Municipalities’ budget decisions and exemptions (homestead credits, senior installment plans, etc.) determine whether homeowners actually pay more after reassessment. New Philadelphia rules, for instance, raised a Homestead Exemption from $80,000 to $100,000 to blunt bill increases following reassessment [3]. Local levy changes and exemptions therefore mediate assessment impacts [4] [3].
4. State and local design choices that shaped 2021–2024 outcomes
Policy choices mattered: frequency of reassessment, phase‑in rules, caps on annual increases, and exemption levels shaped outcomes. Maryland’s triennial review intentionally phases increases so only a subset of accounts face reassessment each year [1]. California’s Proposition‑style base year plus a 2% annual cap (or CPI if lower) slowed growth on owner‑occupied properties that did not change hands [2]. Local governments also used relief programs or installments to ease payments (Philadelphia’s expanded homestead and installment options) [3].
5. Practical implications for homeowners with long‑term assessments
Homeowners who held properties through 2021–2024 often enjoyed relatively low assessed values compared with current market prices—an advantage that persists until a reassessment trigger. But when their jurisdiction undertakes a revaluation, they face the possibility of a steep catch‑up unless local rules phase increases or provide exemptions. Where reassessments are phased, revenue shocks are spread but still material when fully phased in [1] [2].
6. Competing viewpoints and hidden agendas in reporting
Law firms and appraisal advisors emphasize appeal opportunities and legal mechanics—NYC advisories encouraged protests and highlighted median reductions from protests (12% median reduction noted by a firm) [5]. Local government communications stress process and relief measures to minimize political blowback (Philadelphia release on exemptions and appeal rights) [3]. Advocacy groups argue slower or infrequent assessments increase inequities by letting older assessments diverge from market values; research from MOST Policy Initiative warns that reduced frequency can increase disparities [6].
7. What reporting does not cover and limits of this analysis
Available sources describe state and city examples (California, Maryland, New York, Philadelphia, Nashville/Davidson County) and general principles; they do not provide a single, comprehensive accounting of tax bill changes for every homeowner nationwide between 2021–2024. Specific impacts depend on local levy changes, individual exemptions, assessor practices, and whether a property changed ownership—factors not uniformly reported in the materials reviewed [2] [4] [1].
Bottom line: fixed or long‑dated assessments bought many homeowners time during the 2021–2024 market run‑up, but reassessments, base‑year resets on ownership changes, and localized policy choices determined whether that protection disappeared as a sudden tax burden or was eased through phase‑ins and exemptions [2] [1] [3].