A towns budget is X and for sake of argument say it is $1,000,000. The value of the towns taxable property is 10,000,000.... so the towns taxable value changes with the next re-valuation and goes down to $8,000,000.... you do the math... but if the budget does not change the tax rate would go up to get the same $$ for the towns budget based on the new tax value of the town. That is how it is done.
The State requires a town to revalue (every 5 years I believe) so they keep the towns value close to what is going on the the real estate market but it is only a snap shot in time and not a tracking of events. The State looks at the town taxable property value and then assigns a reference called the equilization rate to show how far off from current market value the towns taxable value is. It is a reference number only and used for comparing towns in the state and has no real value.
Its Friday I do not want to do the math
Can't you tell I am in the middle of re-certification classes right now for my RE license renewal.
OK Class is over.
