Tax Revaluation Recommended by Scarsdale Forum
- Monday, 29 November 2010 09:24
- Last Updated: Wednesday, 01 December 2010 17:52
- Published: Monday, 29 November 2010 09:24
- Hits: 9265
Fair assessments for property taxpayers was the main theme discussed as the current New York State system is both hard to understand and properties are not treated uniformly, with some paying too much and others too little. Since property tax is based upon property value, and the last revaluation in Scarsdale was done 41 years ago in 1969, there is no current standardized and accurate assessment for all 5900+ parcels in the Village of Scarsdale.
Speaker John Wolham, Regional Director of the New York State Office of Real Property Tax Services, cited current tax inequities measured in recent Scarsdale residential home sales which have similar sale prices but vastly different tax assessments. He explained how reassessment is a comprehensive review of all properties in a community in which all assessments are set back to market value with the primary goal of fair share tax payment. Undeniably Scarsdale property owners pay among the highest property taxes in the nation and similar neighboring community’s have also commissioned studies on tax revaluation and its impact. Bronxville Mayor, Mary Marvin, spoke about the level of uncertainty for homeowners and residents’ need to understand exactly what revaluation entails. Bronxville successfully completed a revaluation in 2007 which required local government transparency and an educational and collaborative process with open communication. She said “an under-assessed home will stay that way in perpetuity unless you do revaluation. Furthermore, people don’t want to pay more than what the assessor has valued the house at.” Mamaroneck Town Administrator, Steve Altieri, reported the Mamaroneck Town Board resolved in March 2010 to go forward with a town and village-wide revaluation after a ten year discussion and the precipitous increase to over 1,000 tax certiorari challenges this year costing the town $500,000 in the last two years with a related impact on the school budget. Mamaroneck has 8,500 property parcels and projects the completed revaluation assessment roll to begin in June 2013.
Scarsdale’s Village Manager, Al Gatta has a unique perspective on the issue, as he has conducted three revaluation processes in his career in other municipalities. Currently, as Chair of Westchester County Assessment Commission, he believes the County should pass a law to require reassessment every four years. A detailed report from the committee to the Board of Legislators is expected shortly and will be available to the public. He further explained how the decline in home market values in the past three years has led the county to defend tax appeals and challenges costing $55 million and that the goal of full County revaluation is a proportionate and fair share payable by each municipality to the County. At both the county and village level, a related long term goal is that reassessment will level the playing field thereby limiting tax challenges.
Tax revaluation is a complex issue carrying misperceptions about a very technical subject. Reassessment does not raise taxes - it redistributes taxes away from those paying too much, toward those paying too little. Reassessing a property does not, by itself, increase its tax. It lowers the tax on over-assessed properties and raises the tax on those that were under-assessed. If everyone’s assessment doubles, no one’s tax goes up. Your tax goes up only if your assessment goes up more than the community average. Reassessment does not help or hurt any one group. It will help homes and neighborhoods that have not appreciated as fast as the rest of the community.
Questions arising about possible revaluation and its impact:
- Just how inequitable is the property assessment situation in Scarsdale today? No one really knows because it has been 41 years since the last town-wide reassessment.
- Are older homes on large properties in Scarsdale generally under-assessed and will they have to pay more after revaluation? Current real estate listings provide evidence that significant inequities exist.
- What happens with over-assessed properties? Reductions in assessed values translate to a corresponding reduction in property taxes payable.
- Will there be a transition phase-in or deferral allowed for homeowners who are subject to increased taxes after revaluation? Will basic or enhanced STAR (School Tax Relief) and other exemptions offset increases?
- What is the cost of performing a town-wide revaluation? Request for Proposals would be sent to revaluation companies to determine cost estimates.
To find out more about how the proposed tax revaluation may affect you consult a knowledgeable professional such as your local tax assessor, locally licensed real estate agent or broker, a certified real estate appraiser or tax grievance representative. You can view the discussion on the Forum website here and find additional information about tax revaluation on the following websites:
Angela Manson is a licensed real estate salesperson with Prudential Centennial, Scarsdale who has studied local tax revaluation proposals on behalf of her clients and the community. She welcomes and assists buyers and sellers in Scarsdale and neighboring communities. She may be reached at 914-420-9878 or amanson@prucentennial.com
