By state statute 2017 is a reassessment year for real property taxes. New values will be assigned based upon sales comparables during the period from June 30, 2014 –Jul 1, 2016. Your new Notice of Valuation (NOV) will be sent out by May 1, 2017. You will have until June 1, (postmarked) to protest the value the assessor has assigned. Don’t waste your time saying you just think it is too high. You must include supporting comparables and examples demonstrating it is higher than the market comps indicate. You will need to follow the instructions on the NOV form.
According to early conversations with Summit Assessor, Beverly Breakstone, the average increase from the last period is looking like a 15% to 20% increase in residential values and a 10% to 15% increase in commercial values. Before you panic and think your taxes are going up 20% consider the following factors:
1. The reason for revaluations is to keep equality of tax burden, between tax payers, based on property values. The budgets approved in December by each taxing entity (towns etc.) is what drives the amount of money to be collected.
2. There is another factor at play and that is known as the Gallagher Amendment. It says that 45% of all the property taxes in the state must come from residential improved property which leaves 55% from all other property including vacant land. As vacant land has been built upon in the state there is less of the commercial category to cover the 55%. This is adjusted by the assessment rate which has been 29% of real value for the commercial sector and 7.97% for residential sector. This year commercial will stay the same at 29% and it appears that the residential rate (multiplier) will drop to 6.96% offsetting much of the increase in valuations.
*More on the Gallagher and Tabor amendments here: Preliminary Residential Rate Study for 2017-2018