jdemaris said: (quoted from post at 10:09:07 10/18/14) NY also has separate multi-tier assessed values versus taxable value. It's done for several reasons. Also - the towns establish their own percentages of what an assessment represents. In the town of Worcester NY where I am selling off right now - all property is assessed at 60% of actual value.
When I was running for office it came as kind of shock to me to learn the ins and outs of the tax levy and the valuation thing. It's always sounded sooooo good when some town decide to use a 60% valuation for real estate taxes, 25% sounds even better! It makes it sound like the people are only paying on 60% or 25% of the assessed value of their property. The idea always sells like hot cakes. Thing is, it's nothing more than smoke and mirrors and a lie. In NY the State makes the determination on what the real property is valued at in general terms and sends down the State levy, the County decides on what the property is valued at using State rules and decides on it's levy. The Town Board and Assessor are basically handed the "bill", the levy, and told to meet the required amount of $$$. The "equalization rate" is what is used to take that 60% or 25% valuation and to get the full amount of money the levy calls for. IOW, it makes absolutely no difference if you have a 100% valuation rate or 10%, you are going to pay the same amount of money. I'm putting it in laymans terms because I don't know the specific and ultimately correct wording, but what it comes down to is you are going top pay the full bill tot he County and State one way or the other. The Town, Village or City then add in their own needs to the final bill. I know in our little Town the Towns portion of the tax levy is pretty freakin' small and we have less than $10K of wiggle room between the budget and hitting the 2% tax cap. We've managed to keep the levy static for 2 or 3 years now but next year looks pretty iffy.
Anyway, don't be fooled by the 60% valuation and think you're saving anything. You aren't. You are still paying 100% of your property taxes. The only time that rate really matters, so I'm told, is when the tax rates in surrounding Towns in the same school district go up. From what I understand that can be affected by the valuation rate...though I'm still confused on the mechanism that makes it matter.
This post was edited by Bret4207 at 11:26:53 10/18/14.
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