Town of West HartfordSuspension ofRevaluation Phase-In

Robert SiskJune 9, 2009

Revaluation Suspension

•Periodic revaluations are performed to ensure that property owners are taxedbased on the fair market value of their property as required under CGS §12-63•“The purpose of the revaluation is to eliminate inequities that have developedsince the last revaluation, conducted in 1999, due to a shift inmarket valueswithin neighborhoods and/or property types.”Letter from Town Manager, 2006Normal Revaluation Cycle•CGS §12-62 allows for a gradual increase in assessed values (phase-in) overa period not to exceed 5 years. This provision was adopted by the TOWH in2007 leading to the current 5 year phase-in of the 2006 revaluation•Under S.B. 997, signed into law on May 15, 2009, TOWH can suspend the 5-year phase-in of the 2006 revaluation after the second year and freeze thephase-in at the 2007 Grand List level until the next revaluation (for the 2011Grand List).RevaluationRevaluationGrandListDeviation

5 YearsRevaluation5 Years

What does it mean?

•The 2006 revaluation indicated that significant shifts had takenplace inthe relative values of properties in TOWH since the 1999 revaluation:

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Value of personal property and motor vehicles had grown relatively little

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Value of commercial properties had not grown as much as residential

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Within the residential segment, some properties had grown in valuesignificantly more than others

•The magnitude of these shifts was due, in large part, to the 7-yearhiatus since the previous revaluation –due to a similar deferralenacted by the State of CT in 2003.•The 2007 decisions to 1) uniformly increase the assessed value of allreal estate by 25% and 2) phase in the revaluation over 4 additionalyears prolongs the inequities identified by the 2006 revaluation– extending the period in which property owners pay more -or less -thanthe amount they should under CT statutes.•WH property values have dropped marginally since the 2006revaluation but the decrease has been evident in both the residentialand commercial segments -meaning the 2006 Grand List is still themost accurate reflection of property values available.