Quote:
Originally Posted by Just Sold
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.  |
Not sharpshooting you here, but there's more to the final tax rate than the town's rate. A tax rate is set by the county, state, town, and school rate. Each municipality has a budget and funds have to be raised in advance for a town, county, state, and school to operate. In other words, a tax rate change may be a result of increases/decreases from any of these budgets that are included in setting a tax rate.