ORANGE 2006 REVALUATION
FAQ
This section is devoted to the
most frequently asked questions concerning the Orange 2006 revaluation.
Q. What is revaluation and why is it performed?
A. Revaluation is a legally mandated process which requires
each municipality within
Q. What is a computer-assisted mass appraisal
system?
A. A computer-assisted mass appraisal system is a system of
appraising real property that incorporates statistical analysis to assist the
Assessor in estimating value on a mass basis by use of a computer. The mass appraisal process is the systematic
valuation of groups of properties as of a certain date by standard procedures
and statistical testing.
Q. What are the differences between single
appraisal and mass appraisal?
A. Both single property appraisal and mass appraisal employ
the same appraisal methods, techniques and judgments. The differences between single property
appraisal and mass appraisal are:
·
quality control: value
accuracy and consistency measured statistically
·
valuation by computer
models: expressed by tables, equations, schedules
·
mass market analysis:
a review of all sales within a specific time period
Q.
What is current
market value and who will determine my property value?
A. Current market value is the value of real
estate as reflected by sales activity as of a certain date. Current market
value is the price for property that would be agreed upon between a willing and
informed buyer and a willing and informed seller under usual and ordinary
circumstances; it is the price a property would bring if it were exposed for
sale on the open market for a reasonable period of time.
As part of the
The Assessor, with the assistance of the
revaluation company, analyzed each sale and detailed property characteristics
such as location, size, style, quality of construction, land size, topography
and other conditions which effect the terms of sale.
From known sales, the value of
unsold properties can be reasonably estimated.
The revaluation company produced
estimates of current market value via the computer model. The Assessor and the
company reviewed all values for reasonableness and uniformity.
Q. Did the residential real estate
market change from the last revaluation?
Yes. Residential real estate values have increased significantly since
the 2000 revaluation. There are two reports posted on this Web site which
demonstrates the degree on upon which residential real estate prices have risen
since the last revaluation. The first is entitled Rate of Change 2005-2006 Sales versus 2000 Appraised Values. This
report compares the recorded sales price of property from 2005 thru 2006 to its
respective 2000 appraised value (before multiplying by seventy percent).The
2000 appraised values are the basis on upon which assessments were formulated
for tax purposes over the last five year. The second report is entitled Residential Sales from
2004 to 2006. This report lists all residential sales in street
order.
Q. But each property is different, how will you account for the
differences between my house, my neighbors and sold properties?
A. The Assessor, through the assistance of the revaluation
company, has inspected each parcel, inspected and recorded work done through
permits within Town and updated pertinent property characteristics which effect
value. Each owner of real property has
received the results of this field inspection by mail in the form of a “data
mailer”. Owners were given an
opportunity to contact the Assessor’s Office in the case that items listed on
the data mailer are incorrect. Any
necessary corrections from the responses to data mailers have been made to data
base.
After all listings are determined
to be accurate, the company specified and calibrated computer models from current
sales. The computer model contains
variables that adjust for differences. The
hybrid model used to determine the value for single residential use properties is
as follows:
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Total Value = |
[{total liv area
+ full bsmt + partial bsmt + full baths + half baths + additional fixtures + |
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fireplaces + recreation room area + finished
basement area + open porch + enclosed porch + |
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attached garage
+ attached greenhouse + attached carport + patio/stoop) * liv units * style *
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central air *
grade * condition} + (land value)} * traffic adjustment] + outbuildings |
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This Web site also provides a table
which explains interior condition ratings used in conjunction with this
revaluation. It is entitled Residential
Condition Classification Codes. Please refer to the report entitled Residential Land Sales and Tear Downs
to view a five history of land sales.
Preliminary new property values were
field reviewed and further adjustments were made if necessary. The new assessment notices will be mailed to
each owner of real estate from November through December 2006. These notices will reflect the new assessment
and the old assessment for your property.
Q. What are the statistical tests you used to measure value
accuracy and uniformity? Does the public get to view them?
The State of
Q. Do
the new assessment notices contain exemptions that I am entitled to?
A. No. State law requires that the new
assessment notices reflect the gross assessment. (before deducting veterans,
blind, total disability or elderly exemptions).
This is to ensure that you are properly notified of the new value
estimate. (@ seventy percent of market value) Rest assured that all state and
local exemptions that you may be entitled to will be applied prior to the completion
of the 10/1/06 grand list and well before the July 1, 2007 tax billing period.
Q. How
will I know if my new assessment is fair and equitable?
A. There are a few ways to check to see if your assessment is
reasonable and equitable.
Comparing your property to similar
properties which have recently sold is the best way. To aid you with this task, the Assessor’s
Office has a listing of current sales that you could review. . At your discretion, you may compare your
property with others that are similar in Town.
When comparing your property to other properties, please remember that
very few properties are exactly alike. The Assessor’s office has provided a
listing of current sales prices on the Town’s web site. Please refer to the
report entitled Residential Sales
2004 to 2006. In addition, a hard
copy of all residential sales together with a listing of all residential property
assessments is available at the Assessor’s Office. Please consult the report
entitled 2006 Final Total Gross Taxable Values.
If you have a recent appraisal of
your home, performed by a licensed real estate appraiser, compare the value as
stated by the appraisal with the value as contained in your notice. Remember
assessments are seventy percent of the estimated current market value.
Q. What recourse do
I have if I disagree with my new assessment?
A. After the new assessment notices are sent to everyone, the
revaluation company will be available to answer any questions you may
have. If you have concerns, you may make
an appointment with a company representative to review your assessment. Instructions
on how to arrange an informal meeting will be on the increase notice. These informal hearings will commence no later
than November 30, 2006. All attendees will receive the results of their meeting
in writing.
Q.
What if I disagree with my assessment after the informal hearing, what
are my options?
A. If you still feel that your assessment is excessive, you
may make application to the Orange Board of Assessment Appeals. This quasi-judicial board will make a
determination as to the disposition of your case and notify you of the results
in writing.
In order to appear before the Orange
Board of Assessment Appeals, a prescribed written application must be filed
with the Secretary of the Board of Assessment Appeals on or prior to March 20,
2007.
Q. What if I disagree with the findings of the Board of
Assessment Appeals?
A. If you are further aggrieved,
you may file with the Superior Court.
Q. How will the revaluation affect my taxes?
Many Connecticut towns that have
undergone revaluation since 2002 have experienced tax increases as a result of
revaluation. While the post revaluation mill rate decreased as a result of the
revalued grand list, residential taxes increased. In municipalities or cities, where
an appreciable commercial and /or industrial tax base exists, the increases in
residential taxes were caused by a shift in burden from commercial properties
to residential properties. Residential properties appreciated at a much greater
rate than non residential use properties since the date of the last revaluation.
A report entitled Report Regarding Revaluation Policies and Procedures, written by Marc S. Ryan, former Secretary, Office of Policy and Management, State of Connecticut, dated December 27, 2004, and other articles published by the Office of Legislative Research, State of Connecticut, illustrated this occurrence as reoccurring phenomena. Therefore, this shift in local tax burden may negatively affect your taxes. Please refer to the link entitled Tax Shift Articles.
The Town Budget or the collective
spending of a municipality may also negatively affect your taxes if an increase
in spending is approved.
Your residential assessment will
increase due to revaluation but the ultimate effect it will have on your taxes
will not be known until:
·
the severity of the
tax burden shift is ascertained
·
the Town Budget is finalized
·
the issue of phasing in the new assessments is decided
upon
The Board of Selectman will exam
implementing a phase-in of the 2006 revaluation. They should reach a decision
shortly after the passage of the Town Budget.
Last updated 11-8-06