Spring Storms On
June 9, 2015
Summer is Simmering
July 12, 2015
Given the numerous inquiries I have had about sales prices vs. assessments, here are the answers to a few of the most frequently asked questions.
> Does an assessment go up based on sales price?
No, assessments change as a result of an appeal, permitted improvements to a house, or a town-wide reassessment.
> If I paid more than the assessment, do I face a big tax increase when the town reassesses?
That depends. Based on our sample, the “market” is 27.6% above assessed value. If your purchase differential is above that number, chances are you will face an increase. If it is below, then your taxes will likely decrease. If your assessment increases, so will the whole town’s tax base, so your tax multiplier will decrease depending on the town budget.
> When should I appeal?
You might be able to appeal based on your sale, arguing that your market value (provided it wasn’t a short sale) is below your assessed value. You can’t appeal based on comparable tax numbers, just comparable sales prices. In the above sample, only the sale for $405,000 would have a case for an appeal.
