What if there are no reasonably comparable sales?
What is a revaluation?
A revaluation is an update of all assessments in the town conducted under the direction of the Board of Assessors. The Assessors are state - certified individuals whose duties include discovering, listing and valuing all real and personal property in the town, in a uniform and equitable manner. The Board of Assessors is not involved in the collection of property taxes.
Why is a revaluation necessary?
State law requires that all property in the town be assessed within ten percent of market value every three years. A revaluation is the most equitable way to accomplish this.
Will all property values change?
Most likely, yes. However, not all property values will change at the same rate. Market value will have increased more for some neighborhoods and property types than for others. Some neighborhoods and property types may have decreased in value and others may have remained the same. One purpose of a revaluation is to make sure that the assessed values reflect the changes that have occurred in property values.
Who will do the revaluation?
The assessors will do the revaluation. They have many years of experience in property assessments and are familiar with the marketplace in the town. From time to time it may be necessary to hire some outside help. Primarily they would be utilized in commercial, industrial and personal property analysis.
When will the revaluation start?
The revaluation will began on January 1, 2006 and will be completed in November. The resulting values will be effective as of January 1, 2006. These assessments will be the basis for the tax bill that will be mailed in late December 2006.
What is market value?
State law requires that your property be assessed at market value. Market value is defined as the amount a typical, well-informed purchaser would be willing to pay for a property. For a sale to be a market value arm’s length sale, the seller and buyer must be unrelated, the seller must be willing (but not under pressure) to buy, the property must be on the market for a reasonable length of time, the payment must be in cash or its equivalent, and the financing must be typical for that type of property.
What if there has not been a recent arm’s - length sale of my property?
The next best evidence is the arm’s - length sales of reasonably comparable properties. These are properties similar to yours in location, age, style, condition, and other features that affect market value, such as the number of bedrooms and bathrooms and size of garage.
What if there are no reasonably comparable sales?
We will then consider all other factors that may affect the market value of your property. The cost to replace your building(s), less any depreciation, plus the value of the land could be used to estimate market value. For rental properties, the income and expenses could be considered.
I have recently built my home. Will the actual construction costs be considered?
Your construction cost is a historical figure that may or may not reflect the current market value of your property. It is only one element that will be considered.
What will happen to my assessment if I improve my property?
Improvements that increase the market value of a property will increase the assessment. The following examples are typical items that may increase the assessed value of your property:
• added rooms or garage
• substantial modernization of kitchen or baths
• central air-conditioning
• extensive remodeling
How can my assessment change when I haven’t done anything to my property?
General economic conditions such as interest rates, inflation rates, and changes in the tax laws will influence the value of real estate. As property values change in the marketplace, those changes must be reflected on the assessment roll.
Do all assessments change at the same rate?
There are differences between individual properties and between neighborhoods. In one area the sales may indicate a substantial increase in values in a given year. In another neighborhood, there may be no change or even a decrease in property values.
Different types of properties within the same neighborhood may also show different value changes. For example, one-story houses may be more in demand than two-story houses or vice versa. Older homes in the same area may be rising in value more slowly than newer homes.
Among the numerous factors to be considered that will cause values to differ are location, condition, size, quality, number of baths, basement finish, and garages.
Will the person who inspects my property be able to tell me my new assessment?
No. If an inspection is necessary of your property, we have to analyze all of the information we gathered before placing a value on your property. We will then further review this information to ensure that your assessment corresponds fairly to the assessments of other properties.
Will I be notified if there is a change in my assessment?
After the Department of Revenue reviews the new values, there will be a public review period. This time will be advertised in the newspaper.
What if I don’t agree with my assessment?
Talk with an assessor. During the formal public review period you can learn how your assessment was made, what factors were considered, and what type of records we have on your property.
What if, after the bill goes out, I still disagree with the assessment?
You will need to file an abatement application with the Assessing Department within thirty days of the issuance of the tax bill. The Board of Assessors has three months on which to act on your application. They will notify you on an approved Department of Revenue form of their decision within that time.
What evidence do I need to present to the Board of Assessors?
State law puts the burden of proof on the property owner to show that the assessment is incorrect. Stating that property taxes are too high is not relevant.
The best evidence that could be considered would be a recent sale price of your property. The next best evidence would be recent sales prices of properties that are similar to yours. The closer the sale is in similarity and proximity, the better the evidence. Another type of evidence that could be considered would be a recent appraisal of your property.
How will my taxes change as a result of the new assessment?
Although the value of your property affects your share of taxes, the actual amount you pay is determined by the budget needs of the town and school. These will decide what services will be provided in the coming year and how much they will need to provide these services. Once this decision is made, a tax rate is adopted that will generate the needed dollars. Your property taxes are determined by multiplying the tax rate by your assessment. Tax Rate x Assessed Value = Taxes.