By F. Cindy Baire, Member, GAR Associates
If your municipality is conducting a reassessment project, your property assessment (current market value) may increase however your taxes may see no change or possibly a decrease. Some properties will experience an increase in property taxes depending on the significant increase in the property value may be. For Example:
This is one of the reasons that it is important for municipalities to conduct reassessments on a frequent basis. The longer between reassessments, the more likely taxpayers will experience dramatic tax shifts. In some cases, during a reassessment, a municipality will go from a fractional level of assessment to 100%. As the municipalities’ total taxable value of all properties increase, and the budgets/levies remain constant, the tax rate falls.
Before Reassessment Project:
(Total Tax Levy/Total Taxable Assessed Value) x $1000 = Rate
($2,000,000/$50,000,000 x $1,000 = $40
$40 per $1,000 of Taxable Assessed Value
Total Taxable Value = $200,000
Total Taxes = $200 x $40 = $8,000
After Reassessment Project:Â
Total Tax Levy/Total Taxable Assessed Value) x $1000 = Rate
($2,000,000/$75,000,000 x $1,000 = $27
$27 per $1,000 of Taxable Assessed Value
Total Taxable Value = $215,000
Total Taxes = $215 x $27 = $5,805
