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Consultant explains 'indexing' to Bradley County commission as alternative to shorter reappraisal cycles
Summary
A property-assessment consultant told Bradley County commissioners that newly authorized indexing — a statistical midcycle adjustment of assessed values — can reduce disruptive equalization ratios and smooth tax changes, but will require assessor resources and triggers a certified tax rate. No decision was taken; the assessor will decide whether to pursue indexing.
Gabe Looney, a property assessment consultant with CATAZ, briefed the Bradley County Commission on a new option called indexing that allows midcycle, statistical adjustments to assessed property values intended to keep assessments closer to market.
Looney told commissioners that Tennessee counties historically use four-, five- or six-year reappraisal cycles and that Bradley County has been on a four-year cycle. He said ratio studies — the state’s measure comparing assessed values with market prices — have shown Bradley’s ratios in recent cycles in the low 70s, meaning assessments lagged market value by roughly 25–30 percent and that gap can translate into millions of dollars of shifted revenue. “Indexing is nothing more than a midcycle updating of value,” Looney said, explaining it uses market-area multipliers rather than a full reappraisal.
Why it matters: Looney said indexing can eliminate the equalization ratio that reduces personal property and public-utility assessments in ratio years and improve revenue forecasting for the county. He warned, however, that indexing triggers a certified tax rate just like a full reappraisal, and individual taxpayers can face higher or lower bills depending on how their property’s change compares with the county average. He emphasized the revenue-neutral intent at the levy level but noted distributional effects at the individual level.
Stanley Thompson, the county assessor, described preparatory work his office has begun: delineating market neighborhoods, reassigning staff and running preliminary statistics. “If indexing were allowed that we possibly want to go to index,” Thompson said, referring to a line he had included in a previously filed reappraisal plan. He added that indexing could be implemented or rescinded by the assessor and that the new statute gives assessors added flexibility to update values more frequently.
Commissioners pressed staff about likely costs to the assessor’s office, how indexing would affect homeowners in hot-market neighborhoods, and whether it would be perceived as a tax increase. Looney said indexing reduces the size of single-year jumps by making incremental adjustments and that some counties in the region are already moving from five-year cycles to four-year cycles with indexing in order to eliminate the midcycle ratio. He recommended a four-year with indexing model as a pragmatic option given staffing and technical requirements.
No formal vote was taken. Multiple commissioners said they support the idea in principle and that the assessor — not the commission — is the official who would bring a formal indexing plan forward for consideration. The commission asked staff to continue coordination with the assessor and noted they would expect public outreach if a plan is proposed.
Next steps: The assessor’s office will continue technical preparations and may present a formal indexing plan and timeline if it decides to pursue the option. The commission did not adopt any immediate ordinance or change to the county’s reappraisal schedule.
