Preliminary analysis on revaluation
Some early comments from the Town Manager to the Council regarding the revaluation assessments that we all just got:
As you know the company performing the Town wide property revaluation has sent out notices to property owners relative to the proposed change in property values from Oct. 1, 2003 to Oct. 1, 2008. Town Assessor Mario Panagrosso notified me this morning that the median increase in residential real estate values is 9.2 % while the median increase in commercial real estate is 21.8%. If you recall, when we had the last revaluation, residential real estate increased by about 48% while the commercial real estate increased by 21 %, which caused a tax shift from the commercial property owner to the residential property owner. Based on this recent data, such a shift has not occurred with this preliminary information.
Mario indicated that the median is a more reliable measure of the increase than the mean, and is the measure that is used by the State as well.
If these numbers hold true, then... if you assume spending does not increase... homeowners would see a tax cut, while commercial property owners would see a tax increase as the tax burden gets shifted from residential to commercial.
Separate from the revaluation shifting of the tax burden is the all-too-likely cut in state funding.
Without researching it, I'm fairly certain state funding (your tax dollars) given to the town is in the $12,000,000 - $14,000,000 range... out of a total operating budget of $95,000,000 or so.
Tim White
10 comments:
Are actual 2008 real estate values still up by 9-21% given the current real estate market ? How do the new valuations compare to actual current sale prices of residential and commercial properties?
I think this is a very bad time for any reeavaluation and it should be postponed. Other towns have been able to postpone their reevaluations, so why doesn't Cheshire.
We are coming off of a bubble and the experts have no idea of when prices will stop falling. The reevaluation company that Cheshire is using is only guessing, any data that they are using reflects higher prices of months ago which do not reflect the current conditions or where the values will end. We continue to see high prices in the current realestate listings, but they are meaningless as the prices reflect what sellers would like to get, not what they can get, and the houses are not selling, never mind at the prices they would like. Nobody is buying and people don't want to sell at a loss. Look in the Cheshire Herald for the reaestate transfers to see the market is dead. We have lots of vacant houses in Cheshire which the owners simply took off the market. And look at the stock market tha is worried about the continued downturn in housing.
It is wrong to proceed with this reevaluation as it significantly overstates the value of today's houses and the grand list. Having a high grand list makes Cheshire look like a rich town and as a result we get less from the state.
I think the Dems on the council are very interested in getting as high a grand list as possible so that they can claim they reduced the mill rate. I think that the Dems only care about retaining power and are not interested in working for the Cheshire taxpayers.
If the Dem majority approves these inflated revaluations (when actual values have fallen by 9-21-plus percent), I guarantee this will cost the Dems control of the boards next November.
The Republicans should try to stop this now, and prepare to make this the major issue in '09.
If they are unable to stop these phony, inflated revaluations, someone should SUE IN COURT to stop them. No way am I going to pay taxes on a $ 320 valuation when my next door neighbor just sold for $ 270.
Matt, Matt, Mike, and Mike, you better learn how to diet, exercise, and cut the fat soon. Don't press your luck on this or you'll be out on your a*s and hauled into court.
We'll just have to vote the Dems out next time.....
The reevaluation values are outrageous. These people are so far off the mark and the Town Assessor and the Dems know it.
Is the reevaluation company's fee based on the total grand list?
I think the Cheshire Dems are drinking the kool aid of irrational exubernance. I'd be lucky to get the same amount now for my house I could have gotten five years ago when the economy was rocking. The town says it's gone uop almost 10%. Sure. Flip your own damm house.
Looks like a lot of people got their "Thanksgiving Card" from the town. Happy Thanksgiving.
I azm in the midst of trying to sell my house and I can tell you that my home value has dropped nearly 10 percent since 2007...so where on earth are they coming up with the revaluation?
Based on conversations with the Tax office and firm that the revaluation today it would be wise for every citizen to request a hearing. One person admitted had had to answer all questions from a written script. If you ask for the specific homes your home was compared too that data is not available. It appears the entire deal was done with the method of mass valuation. This entire deal is rigged.
Hey, Cheshire Democrats, notice this?
Home Prices in Record Decline
http://realestate.yahoo.com/promo/home-prices-in-record-decline.html;_ylc=X3oDMTF0bHQ0NWgxBF9TAzI3MTYxNDkEX3MDOTc2MjA0NjUEc2VjA2ZwLXRvZGF5BHNsawNwcmljZXMtcmVjb3JkLWRlY2xpbmU
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