Revaluation |
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| Revaluation |
| The term "Revaluation" is a process
of determining how accurate and uniform the values used to establish
property taxes are. It is actually a "Mass Appraisal"
of all properties.
A very simple explanation of the process is that it is done through
a detailed statistical analysis of "arms length" sales
that have occurred within the year prior to the assessment date,
which is January 1st of each year. These sales prices are compared
to the current assessed values in order to determine the "assessment
level". The premise being that sales are the most accurate
measure of "full and fair market value". |
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| Triennial Revaluation |
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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 members of the
Board of Assessors are state - certified individuals whose duties
are to discover, list, and value 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.
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Why is a revaluation necessary?
State law requires that all property in the town be assessed within
ten percent of market value and the Department of Revenue certifies
the assessments every three years. This is referred to as the DOR’s
certification cycle. The next “certification of values”
is for Fiscal Year 2007. A revaluation is the most equitable way to
accomplish this.
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Will all property values change?
Most likely, yes. However, not all property values will change at
the same rate. Market value may 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.
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Who will do the revaluation?
Members of the assessor's staff will do the revaluation. They have
many years of experience in property assessment 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 the
office for data entry or computer analysis.
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When will the revaluation start?
Shrewsbury began in Fiscal Year 2003 to conduct what the Department
of Revenue calls “Interim Adjustments”. Essentially that
means that we do an analysis of sales every year and make the necessary
adjustments in our assessed values required to meet the DOR’s
statistical requirements each year. What this all boils down to is
that we do a “revaluation” each year. We are constantly
studying the market and making adjustments to our values. It does
require more time and effort on the part of this office but the result
is a more uniform base of values and fairer and more current values.
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Is it necessary that you view the
inside of my property?
To make a proper assessment on a building, it is necessary that an
assessor have accurate information about the inside as well as the
outside of the property. We continuously perform data quality control
studies of our existing information by conducting inspections of all
properties on a regular basis over a nine-year period. If we are unable
to enter your property, we will still review your assessment based
on the existing records and sales of properties similar to yours.
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What if I refuse to let assessment
personnel in my property?
All assessing staff will have an identification card with their picture
on it. Our phone number is 841-8501 if you need verification. To ensure
accurate assessment, it is to your advantage to allow the assessor
inside your property when an inspection is required. You are not required
by law to allow an inspection, but you should be aware that by denying
an inspection, you might lose some statutory rights if you feel the
need to appeal your assessment.
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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 buyer and seller must be willing (but under no pressure) to buy
or sell, 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.
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What if there hasn't 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. Analysis
of such sales is the basis of our valuation process.
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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 income properties, the income and expenses will
be considered.
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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.
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What will happen to my assessment
if I improve my property?
Generally speaking, 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
* Fireplaces
* Extensive remodeling
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Will my assessment go up if I
repair my property?
Normal maintenance will help retain the market value of your property,
but generally will not affect your assessment. Significant repairs
of serious structural deficiencies may have an affect on the value.
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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.
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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 value 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 of construction,
and the number of baths, basement finish, garages, and many others.
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Will the person who inspects my
property be able to tell me my new assessment?
No. If an inspection is necessary on your property, we have to analyze
all of the information we gathered before placing a value on it. We
will then further review this information to ensure that your assessment
corresponds fairly to the assessments of other properties.
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Will I be notified if there is
a change in my assessment?
The Department of Revenue reviews the new values only during the Tri-ennial
“certification cycle”, during this “certification
there is a public review period. The dates and times that these values
are available will be advertised in the newspaper and on cable.
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What if I don't agree with my
assessment?
Talk with an assessor. During the informal 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.
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What if, after the bill goes out,
I still disagree with the assessment?
You have the right to file an abatement application with the Assessing
Department by the due date of the third quarter 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.
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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. You should establish in your mind what
you think your property is worth.
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 in similarity
and proximity, the better the evidence. Another type of evidence
that could be considered would be a recent appraisal of your property.
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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 budgetary needs of
the town. The services that will be provided in the coming year
and how much money will be needed to provide these services decide
this. Once this decision is made, a tax rate is adopted that will
generate the needed dollars. Your property taxes are then determined
by multiplying the tax rate by your assessment. The tax rate is
expressed as dollars per thousand dollars of value.
$9.24 x $200,000 divided by 1,000 = $1,848.00
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