Property Appraiser Tracy Drake tells VAB buyers are often blindsided by tax increases, urges better disclosure

Tracy Drake, Clay County's property appraiser, told the Value Adjustment Board on July 29 that the bulk of petitions come from recent purchasers and that many homeowners are surprised by higher tax bills tied to reassessment after a sale.

"Those are the 18 people that we see," Drake said of the homeowners who appeal after purchasing a property, and he noted a broader pattern: professionals representing large portfolios file high volumes of appeals while local buyers often file because they are newly subject to a full market assessment. Drake told the board the county processed about 1,907 petitions last year and estimated the Save Our Homes differential in Clay County at about $7,000,000,000, which he used to illustrate the scale of nontaxed value carried by long-term homestead owners.

Drake said the result is many buyers are "blindsided" when their mortgage escrow reflects the tax increase. He described prior legislative efforts to add disclosure requirements for listings and online property postings, saying, "The Board of Realtors has killed that bill 3 years in a row," and argued that buyer disclosure would be a practical way to reduce surprise and downstream appeals. Drake said some disclosure proposals would create civil liability if sellers or listers fail to provide tax estimates, but those bills have not cleared the legislature.

Drake recommended scheduling hearings in January to allow time for internal review and to handle the large volume of petitions, and he explained why magistrates often see many commercial and corporate filings from professional tax representatives. He also noted magistrates can use tools to limit repetitive testimony and manage hearing time if necessary.

Board members asked about remedies and who should bear disclosure responsibility; Drake said lenders and title processes commonly raise practical limits and that statutory disclosure requirements would likely be necessary. The board asked Attorney Thawitzer to consult with magistrates about whether a formal maximum presentation time should be recommended or whether magistrates should retain discretion; Thawitzer said magistrates have tools to limit redundant or repetitive presentation.

The board did not adopt legislative policy during the meeting; members asked staff and counsel to follow up with magistrates and to report back on any recommended time limits or procedural clarifications. Drake said he would also present to a House select committee working on property tax reform.