Lancaster 2020 property reassessment

[Lee Chowaniec]

In a featured Lancaster Sun article this week, Lancaster Town Assessor Rebecca Baker was quoted as saying, “I can confidently say assessments have been increased. The first thing people think is as your assessment goes up, your taxes are going up to.”

Baker, as well as Supervisor Ronald Ruffino and Town Clerk Diane Terranova explained that taxes will increase for about 1/3 of property owners, 1/3 will see no increase, and 1/3 will realize a small decrease.

The reassessment process is to level the playing field where all property owners are paying their fair share in taxes and where the intent is also to bring the equalization rate (level of assessment) back to 100% market value to accomplish that goal – and to also receive appropriate STAR and other exemptions.

Comment(s)

As a advocate for the reassessment process, I found the report informational and credible with the exception of two segments:

1. In the report Councilman Robert Leary (and others as well) voice that ‘it is a shame that the reassessment took too long to take place’ (10 years) and that it should take place every two-to-three years at minimum, and with yearly partial assessments.

In 2017, the equalization rate (of full market value) was still at 92%. Assessor Baker appeared at a town board work session in 2018 to advise the board that the equalization rate had dropped to 88% and that it was time to consider performing a property reassessment process. Despite acknowledging how the public dislikes the process, the town board decided it was time to act and the process to conduct a reassessment began. The process is a lengthy one and costly as well. The town did not act imprudently – especially considering the recent significant increase in property sale values (IMHO).

2. In the report Assessor Baker is quoted as saying:

This means that based on the assessments that were in place - most of which were a result from the last reassessment in 2010 – and the current value of homes are selling for, Lancaster properties were selling at 77% of market value across the board in 2019, Baker said.

In other words, if a person has a $100,000 home in Lancaster with a 77% equalization rate and in another town with a 100% equalization rate, then the home would be worth $77,000 in Lancaster and $100,000 in the other town, Baker said. “That’s the reason you do a re-evaluation,” said Baker.

That analogy is confusing to me. Clarification is needed as I don’t understand what a property’s value, or the sale price of a home has to do with property assessment or taxes paid in today’s market where prospective buyers are interested in value and often overbid the asking sale price. Individuals I know looking to purchase homes base their wants on municipal services provided, safety and school evaluations. Property assessment and taxes enter into an equation only if the sale appears overvalued.

Lastly, I find it interesting that no one asks what happens if this ‘hot’ house market deflates and how that will impact equalization rates and taxes. Or, asking how much this reassessment process costs the town – especially those clamoring for reassessments performed on a two-to-three year basis, and with a stable equalization rate?

[yaksplat]

As far as I'm concerned, equalization rate is nothing more than saying, "we're too lazy to keep up with assessments, so we're going to blanket apply increases without actually increasing your assessment."

[gorja]

Here's the Assessor's statement that Councilman Leary provided at tonight's meeting.

[gorja]

As far as I'm concerned, equalization rate is nothing more than saying, "we're too lazy to keep up with assessments, so we're going to blanket apply increases without actually increasing your assessment."

Also, as a resident of Newstead, the new assessment won't affect the assessor herself.

[yaksplat]

The amount of tax collected should not increase by one cent after a reassessment if done correctly.

[yaksplat]

Interestingly enough, banks tend to use zillow to figure out the value of a home as this is more reliable then a town assessment.

[Lee Chowaniec]

The Assessor’s statement that Councilman Leary provided at Monday nights town board meeting was also accompanied with a spreadsheet indicating the percentage of assessment increase certain town administrators should expect to see.

The average assessment increase was 33%. It ranged from 19-44%. There was no estimate provided where the cutoff percentage is regarding where one would expect to see a tax increase, based on last year’s tax roll - or what to expect in 2021 tax status as the tax rate should change after the budget is finalized.
Property owners will have a better idea when receiving their assessment estimates in the mail this week.

I have yet to hear the cost of doing the reassessment, or whether the town gets compensation from the state to offset the cost in getting municipalities back to 100% market value assessments.

Nor has the Assessor (or town) provided any information as to why town ‘partial reassessing updating’ is not feasible. If the Assessor is not going to hold a public informational meeting – as held by previous assessors – information should be posted on the town website.