How is my property tax computed?

Every year, municipalities assess every parcel of real estate a valuation which is used to derive the actual property tax. This assessment is based on the market value of the property as of a particular date, the assessment date. The tax is computed by multiplying the assessment times the tax rate. For example, if the assessment is $340,000 and the tax rate is $10.50 per thousand then the taxes would be $3,570.00 (340000 / 1000 x 10.5 = 3570).

How is the assessment amount determined?

The assessment amount is determined through a revaluation. Every property in the municipality is appraised as to what its market value would be if it was sold on the assessment date.

Are there different kinds of revaluations?

There are currently two types of revaluations: the full revaluation and the statistical update. In a full revaluation, every property is visited and inspected and an interior inspection is performed. In a statistical update, the data from the last full revaluation is reused, except that properties that sold within a recent time frame, or that have materially changed will be reinspected. Generally, full revaluations are done every nine or ten years, while statistical updates are done at three year intervals between the revaluations.

Why do we need to perform periodic revaluations?

Since taxes are assessed according to the value of the property, and real estate property values sometimes fluctuate greatly, revaluations are needed to equalize the values so that taxpayers are paying a fair amount of tax in relation to each other. The time intervals required for revaluation are determined by State Laws.

Does this mean that my new assessed value will be higher?

This depends entirely on the real estate market values. When real estate values soar, then assessed values will be higher. When the market cools, then valuations will be lower. A higher valuation doesn't necessarily mean higher taxes, however.

What do I have to be aware of about this revaluation? Will someone come to my home?

Depending on the type of revaluation or whether your home has recently sold or changed, you may be visited by a representative of the revaluation firm. This representative will carry a photo ID and his identity and car registration will be known to the local Police Department. If you have any doubts about the identity of the person, please call the Assessors Office to verify.

How long will this inspection take?

The total interior inspection only takes about ten minutes. The representative will ask to see every room in the house, and the basement. When the interior inspection is complete, the representative will do an exterior inspection and measure the property.

Do I have to let the person in?

Your cooperation is requested in order to have the most accurate data in which to compute your assessment. If there are any conditions that make the condition a hardship, such as an elderly person who needs someone else to help with the inspection, please notify the inspector at the time and he/she will take the appropriate steps. Our goal is to personally inspect every house. Those houses that, for whatever reason, we are unable to inspect, we will attempt an estimate of the interior amenities.

How will I be notified of my new value? Suppose I disagree with it?

At the end of the project, all taxpayers will be notified by first class mail of the new valuation. If you disagree with this value, you will have the opportunity to have a personal hearing with a representative of the revaluation company in which you can make your views known, and who can speak to you about your valuation.

What will I need to bring with me to the hearing?

You should bring any documentation which supports your position, including recent real estate appraisals, documentation of land defects (unbuildable, wetlands, septic, etc.)

My value has gone up (down), does this mean my taxes will be higher (lower)?

Not necessarily. The tax rate will be adjusted to reflect the new values created by the revaluation. The Town can only collect taxes according to the amount of money they've appropriated in the budget. The total of the new values divided into the tax levy will determine the new tax rates. Whether individual taxes go up or down depends on if the property value improves greater or less than other property values in the municipality.