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03/01/2023 09:28 AMIn accordance with state statute, the town of Madison is conducting a town-wide revaluation of all real property.
Statute dictates that all property be revalued every five years to ensure uniformity in real property valuations. Data collectors from contracted Vision Government Solutions began visiting Madison properties on Jan. 17. Town officials are reminding property owners that an increase in property value may not necessarily translate to an increase in property taxes.
Several other shoreline towns, including Guilford, recently conducted revals, and many homeowners became troubled by the significant increases to their home’s value, fearing a corresponding dollar-for-dollar increase in their property taxes.
First Selectwoman Peggy Lyons said property owners should understand that an increase in their property’s value does not necessarily mean a mirrored increase in property taxes. According to officials, property taxes will increase for many owners after this revaluation, however, that increase is tied into the Grand List, and the mil rate and does not translate into that feared dollar-for-dollar increase in one’s property tax.
“The reval will be ongoing for several months and would not be sending the letters to the public with any changes of assessment until the fall,” Lyons said. “Residents would not even be alerted to any changes until the fall when these notifications go out, and then there will then be an opportunity to go through the appeals process.”
An increase in the Grand List is tempered by a decrease or hold on the mil rate, meaning that if a property’s value increases by 50%, property taxes do not necessarily increase by the corresponding amount. Lyons cautioned residents to take the time to understand the nuances of what a “revaluation” means.
“Everybody will probably see an increase in their assessed value, but the mil rate is trying to match up the budget with the tax base, so, the higher your tax base is, essentially...it means that your mil rate is not going to go up at the same rate. The budget is budget,” Lyons said. “People may be shocked in terms of how much their values go up, but understand that everyone else will have that same impact, and so...if the tax base grows a lot, the mil rate doesn’t have to be so big to equal the budget.”
“The mil rate will be based on what the new tax base is and what the new budget is,” Lyons added. “The mil rate is the result of what our budget is, so I don’t think people should get so hooked on their assessment unless they were under-assessed. It is one of those varying things, but a reval is independent of what the mil rate potentially could be. If the whole Grand List grows a lot, then the mil rate simply doesn’t have to be as much. There are also other revenue sources coming in that affect the mil rate as well.”
Madison Assessor Orietta Nucolo said a revaluation can seem dense, but it boils down to accurate value assessments, so that individual tax bills are imposed as fairly as possible.
“A revaluation is the process of performing all of the necessary market analysis and valuation steps to determine accurate and equitable values for all properties within a municipality. The equalization of the values within a city or town creates a fair distribution of the tax burden. The purpose of a Revaluation is not to raise taxes. The purpose is to create an equitable distribution of the tax load,” said Nucolo.
The valuation process can be complex, but according to Nucolo and Lyons, an expanding tax base is a positive sign for a municipality, and taxpayers also have the power of the budget referendum vote.
“During the town budget process, the financial needs of the town are examined. The Board of Selectmen and the Board of Finance arrive at a final budget [which is funded primarily by property taxes]. This budget must then be approved by referendum. The Board of Finance then sets the mil rate, which is the dollar amount of tax due per $1,000 for assessed property in town which includes real estate, personal property, and motor vehicles,” Nucolo said.
There is also a mechanism in place that allows property owners to appeal any valuation of their property. That information can be found on the town website at madisonct.org/revaluation.