Radiofree West Hartford - What You Need to Know about West Hartford's Budget, Re-Valuation and the new Mill Rate by Judy Aron

What You Need to Know about West Hartford's

Budget, Re-Valuation and the new Mill Rate

By Judy Aron

March 10, 2007

The budget cycle season is upon us here in West Hartford. The question that is on everyone's mind is how is re-valuation going to impact my tax bill? First of all, we know our property values have risen here in West Hartford. That's a really good thing! We should rejoice that we live in a town that appreciates over time. Ideally we want to live in a town that has high property values and assessments but also has low mill rates. The mill rate in conjunction with your property assessment determines how much of your money the town will get when you pay taxes.

So how is it determined? It is very simple. Your property has a property value. That property value for purposes of determining you tax bill is determined by many factors, but basically is the market value of your home/property as of October 2006. Incidentally, the market was much higher in Oct 2006 than it is currently, so we are already overpaying a tax based on an unrealized capital gain. The assessed value of your property is arrived at by taking the market value and multiplying it by 70%. Letters were sent out in October 2006 which stated what your new assessment would be and it listed your property's market value as well as its assessed value. You then had the chance to appeal that assessment, and many West Hartford residents did just that.

Now that we have our assessed value of our property we can determine a few things, but before we do, let's get some terms straight. A mill is equal to $1.00 of tax for each $1,000 of assessment. To calculate the property tax, you have to multiply the assessment of the property by the mill rate and divide by 1,000. For example, a property with an assessed value of $200,000 located in a municipality with a mill rate of 20 mills would have a property tax bill of $4,000 per year. One mill in this example represents $200. In your own case just divide your assessed value by 1,000 and you'll get how much every mill will cost you on your tax bill. Our current mill rate is 46.19 mills, and that was applied to your old property assessment and determined your tax bill last year before revaluation occurred. We will be waiting to see what our new mill rate will be based on the proposed budget that is due out on March 13, 2007.

What I want you to figure out, and understand, for yourself is how the new mill rate will affect what you will have to pay in tax in 2007. Jim Francis, Town Manager, was quoted in the West Hartford news (Revaluation Sparks 71% Grand List Growth, 3/1/2007), "that the current mill rate of 46.19 will drop down to the 30 range. " Now you may say to yourself, that's great, the mill rate is much lower! But in fact the reality is a mill rate in the 30's will be a significant tax increase for all of us!

Get your calculator if you must, but if you take the amount that you paid in taxes last year, and you divide it by your new property assessment, then multiply by 1,000 that should give you the mill rate that you would need to keep your tax payment the same as last year. When I do that calculation I find that in order for my taxes to remain the same (with no increase) the mill rate would have to be 24.69, so clearly a mill rate of even 30 mills would be a huge tax increase for me. In fact a mill rate of 30 applied to my new assessment would be a 25% tax increase for me! So even though a mill rate of 30 is down from the current 46.19 mills, it is still exorbitant. Remember- every mill above 25 (approximately) will represent an increase in your tax bill equal to your assessed value divided by 1,000. If your house is assessed at 200,000, then every mill point above 25 (approximately) will cost you an extra 200 in tax per year.

Try it yourself. Multiply a mill rate of 30 to your new assessment value that was on the letter that you received in October 2006, and divide by 1,000, and see how much more total tax you would be paying than what you paid last year. If you are shocked by the increase, then you need to speak up.

Our Board of Education has already announced significant increases, and our Town Council is crafting the new budget. The budget process is well underway and you need to contact your town representatives now to tell them that you want to see some responsible spending and maintain a low mill rate. Contact the West Hartford Taxpayer's Association, at president@whta.org or 860-570-1203 or visit our website at www.whta.org.