(3/12/2010) Q: Please explain clearly and precisely how the 8.8% (avg) increase fits in with the property tax increase phase-in that accompanied the assessment of real estate which occurred just before the property value bubble burst. It would be helpful if you can provide a year-by-year example for someone whose home was assessed at $80K before the reval and $130K after the reval.
A: The last real property revaluation was completed for October 1, 2006. These values are the GL values that are legally applicable for GL 06, GL 07, GL 08, GL 09 and GL 10. In 2007 the Board of Aldermen voted to phase in the difference over the 5 year period of the revaluation so that 20% of the difference is applied each year. In 2009, the Board voted to freeze the revaluations so that the 2008 GL again equaled 40% of the difference. As the changes in values of every home were different, the increase in each year for each property is also different.
The 2009 GL will reflect 60% of the difference between the GL 05 and GL 06 values (Phase in 3). At the same time the mill rate will be reduced from 42.21 to 41.21. As such, the increase that each property will experience is entirely due to the application of the increase in the assessed value from 40% of the difference to 60% of the difference, on average for residential units this would be 8.8% - however, it is important to note that some homes will see smaller increases while others will see larger increases.