If the proposed budget passes on May 8, will my taxes go up 9.34%? *
Yes, they will go up but most Redding homeowners won’t be paying 9.34% more than they paid this current fiscal year. Why not? Because chances are the value of your home went down.
According to this chart prepared by Board of Finance Member Jamie Barickman, 20% of Redding’s homes have gone down in value by -8.2% (60% have gone down between 1.2% and 4.7%.) These are the homes valued at over $485,000. The bottom 20% of homes have actually increased in value by 1.8%
What does that mean to you?
If you’re like me, all of these numbers start to run together and it begins to sound like blah blah blah. It took a village to help me understand this, so hopefully I can break it down to where the average Redding homeowner can understand it too. (Thanks to Kim Yonkers, Charlie Landau, Jenifer Wyss and Michael Thompson for the explanations and help. Also, thanks to my friends on Facebook who tried to teach me math!)
First thing to understand is the “mill rate.” A mill is equal to $1.00 of tax for each $1,000 of assessment. To calculate the property tax, multiply the assessment of the property by the mill rate and divide by 1,000. For example, a property with an assessed value of $50,000 located in a municipality with a mill rate of 20 mills would have a property tax bill of $1,000 per year.
The mill goes up or down depending on the voter approved budget. The mill rate in Redding has not had a huge change since 2013-14.
In our case, the mill rate is probably going up but your assessed property value most likely went down. Even those whose property stayed flat or increased will still pay more.
A home that was 500,000 was paying $14,810 according to the old mill rate of 29.62. If the mill rate did not go up and that house went down 8.2%, it would now be valued at 459,000 and their tax would be 13,595.58 which would be a tax savings of $1214.42
If this budget is approved and our taxes go up 9.34% to the new mill rate of 32.385, then they would be paying $14864.72. Although they are only paying less than $55 more than the year before, its because their house is now valued at $41,000 less than this year.
If their home wasn’t reevaluated, their tax bill would be $16,192.50
On the other end of the scale, a home that was worth $250,000 is paying $7405 at the current mill of 29.62
The house re evaluated at +1.8%, which would make the home value $254,500 and with a flat mill rate, the tax would be $7538 which is a difference of $133 more than this year.
If the house was not reassessed, the amount they pay with the new mill rate would be 8098.25. which is $693.25 more than this year.
The new mill rate and the new assessment would bring the payment to 8241.98, which is an increase of $836.98
So, what does that all mean?
With most of the reassessments going down, the dollar amount you are paying may not seem to be that much different but take into account the new reduced value of your home.
You can find your property information here.
Or, you can go to townofreddingct.org and click on Government and then Finance and Taxes and then Assessor. Scroll down to other links for Assessor Field Cards and click (search by name, address, Acct #)
Find your property: Search by name, address or acct.
At the very top you will see your 2017 appraisal and assessed value (70 of appraisal) Do the math: assessed value multiplied by the proposed new rate of 32.385 and divide by 1000. That’s your estimated tax for this year. (The same mill rate will be applied to vehicles and taxable business/personal property.)
Also, read through the proposed budget that will soon be available on townofreddingct.org. Make a decision on your support and then go vote on May 8. Every vote counts!
* Even if the budget passes as presented, the Board of Finance will have to set the mill rate. They have other options to lessen a 9.34% increase like depleting our town’s fund balance but that won’t be decided until after the referendum. This article makes assumptions based on a new mill rate calculated on the passed budget.