Assessment Increases -- Important Information October 1, 2023, Revaluation
2023 Assessment Increases Does Not Necessarily Mean Your Taxes Are Going Up!
The results of the 2023 Revaluation from Vision Government Solutions, Inc have been issued, most of those may have expected this and others may have received a surprise, in the significant increase in property assessments. More importantly, the increase in assessments does not necessarily correspond to a large tax increase in property taxes for the 2024-2025 fiscal year, which is billed to taxpayers July 1, 2024. While the average assessment increase is roughly around 33% in New Hartford, the average tax bill will not increase this much. Please remember your tax bill will not increase the same percentage as your assessment. The October 1, 2023 assessments are based on market values in our area, meaning the sales of comparable properties within the Town of New Hartford. The last revaluation that was conducted in the Town of New Hartford was in 2018, the next revaluation will be in 5 years with full inspections of each residence. The Board of Finance is not able to set a mill rate at this current time (November 2023) because the final Grand List and town budget are not yet available. For property owners who are not satisfied with their revaluation assessments are encouraged to complete an informal hearing process with Vision Government Solutions, Inc directly to discuss any issues or discrepancies. To schedule an appointment please CLICK HERE and follow the instructions. You will need the Parcel ID number (PID#) at the top of your notice to book your appointment. Please book an appointment within 5 days.
To view your property information CLICK HERE to access your latest property information.
How is a mill rate determined?
The primary source of income for a town is taxes, other sources may be Federal and State Grants or miscellaneous revenue such as permits fees, dog licensing etc. There are key factors needed in order for the Board of Finance to determine a mill rate, this includes a Grand List and Budget. Grand Lists are complete by January 31st and the budget process continues through March and April. The Town votes on the budget at referendum in May.
The new budget each year includes expenses such as salaries, schools, equipment and other needs of the town. The Board of Selectman, Board of Education and Board of Finance will have several meetings for the public to attend in relation to the Town of New Hartford 2024/2025 budget.
In a towns budget once all other sources of revenue are deducted, this then leaves the amount of money that the Town needs in taxes. Once the Grand List and Town Budget are determined the Board of Finance can determine a mill rate, without this information they cannot accurately set a mill rate. The Board of Finance will set a mill rate in the Spring of 2024. The mill rate for the 2022 Grand List was set by the Board of Finance at a Special Meeting held on May 9, 2023.
See below for an example:
Total Town Budget (Expense of the Government or $ Needed) = $20,000,000
Additional Sources of Income (Grants, Permits etc.) = $2,000,000
Dollar Amount Needed from Taxes = $18,000,000
In this example, if the Net Grand List (after exemptions) is = 600,000,000 below is how a mill rate would be calculated.
Given the above information, how would you determine what the mill rate would be?
Answer: $18,000,000 / 600,000,000 = .0300 X 1,000 = 30.00 MILLS (a mill rate of 30.00 meaning $30.00 for every 1,000 in assessed value).
An individuals assessed value is multiplied by the mill rate to obtain an individual tax amount.
If the assessed values increase and the town budget remains constant the mill rate or "tax rate" will decrease.
If the assessed values decrease and the town budget remains constant the mill rate or "tax rate" will increase.
If the town budget and expenses increase and the net Grand list remains the same, the mill rate would go up.
Important Reminder: If the Grand List increases the most probable outcome will be that the mill rate or tax rate will decrease because there is more revenue within the town.
In turn, if the Grand list decreases the most probable outcome would be that the mill rate or tax rate will increase because there is less revenue within the town.
Once a revaluation is complete, the assessed value of real property may increase or decrease, depending on the market. If assessed values increase, this DOES NOT MEAN you will be paying higher taxes. The taxes you pay will be based on a new mill rate. If the assessed values in town increase the Grand List rises, meaning your mill rate will likely go down. This means your taxes may generally stay the same even though the assessed value of real property has increased.
Key term and definitions to keep in mind:
Grand List: a true and accurate reporting of all taxable and exempt property in the town. The term “Grand List” is the number used to generate revenue needed to run the town. This is what the overall mill rate (tax rate) is based on. The mill rate is the rate when multiplied by the assessed value of all taxable property, will produce the revenue needed to balance the budget.
CGS 12-62a = Uniform Assessment Date is October 1st.
Revaluation: Required by State of CT Statue to be conducted every 5 years. Revaluation is the process of determining fair market value for all properties in the town. “Value”, real estate is valued every five years through a revaluation, and an interior inspection must be done within every ten years. The main purpose of a revaluation is to bring assessment level current and maintain equity. In addition, we modernize assessment procedures and confirm to state statues. Revaluation is mass appraisal, the process of valuing a large number of properties as of a given date, conducted in a uniform order, using standard methodology, common reference data and statistical testing. We use mass appraisal to develop values town wide in revaluation in an effort to bring all property classes back to equitable so that everyone is paying their fair share of the tax burden.
Market Value or “Fair Market Value”: is the most probable price estimated in terms of money.
Assessed Value: a dollar amount assigned to taxable property, which is determined by the value of the property. The assessed value is 70% of the fair market value, this is the value you will be taxed on.
Mill Rate or "Tax Rate": “tax rate” in Connecticut. For example: a mill rate or tax rate of 30.00 mills means you pay $30.00 in taxes for every 1,000 of assessed value. You would multiply your assessed value by the mill rate. If a home has an assessed value of 100,000 (70%), you will multiply 100,000 X 30.00 (0.030) = $3,000 (tax amount owed). A mill is the 1/1,000 part of $1.00.
CT house prices rose 10% in a year. Will they ever drop? Click to read the article in the Hartford Business Journal from November 29, 2023. You will be redirected, please wait as an ad will appear for about 10 seconds. You will then be brought to the article on www.hartfordbusiness.com
Connecticut saw the fourth-highest rate of house price increases in the country since the third quarter of last year, a lasting impact from dwindling inventory that real estate agents say is unlikely to change in the near future.