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 Connecticut to appraise all real estate by current fair market value as of a certain date. The date of appraisal for revaluation in the Town of Orange is October 1, 2006.

 

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 Orange revaluation for the year 2006, all sales were analyzed and verified from January 1, 2005 to October 1, 2006. The company and the Assessor will then monitor sales from October 1, 2006 to January 1, 2007 as an after market sampling.

 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:

 

Total Value  = 

[{total liv area + full bsmt + partial bsmt + full baths + half baths + additional fixtures +

 

 

 

 

 fireplaces + recreation room area + finished basement area + open porch + enclosed porch +

 

 

 

 

attached garage + attached greenhouse + attached carport + patio/stoop) * liv units * style *

 

 

 

 

central air * grade * condition} + (land value)} * traffic adjustment] + outbuildings

 

 

 

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 Connecticut requires each municipality to perform statistical testing on the values produced by a revaluation to ensure that the level and uniformity of new assessments conform to State standards and to ensure that unsold properties were treated the same as sold properties in the revaluation process. Sales Ratio Studies; Sold versus Unsold Ratio Tests, and Delta Studies are constantly updated during the project and the final results will be open to public inspection at the conclusion of the informal hearing phase of the project.

 

 

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


Tax Shift Articles