 |
 |
 |
CITY OF NORWALK
2003 REVALUATION
CITY OF NORWALK 2003 REVALUATION
What is the impact of the change in my final property value for this revaluation on the amount of taxes I will pay in July 2004?
There are three components that determine the amount of taxes you will pay:
· the Grand List, which is the total assessed value of all real estate, motor vehicles and personal property in the city
· the tax levy, which is the total budget required for municipal services and schools for the next fiscal year less anticipated revenue from all non-property tax sources
· your own assessed value which is 70% of the 2003 market value of your property
Now that the Grand List for the 2003 revaluation has been finalized, taxpayers are most interested in what effect the new revaluation values will have on the July 2004 tax bills. The amount of taxes you will owe on your real estate will be calculated by multiplying your new district mill rate times your net assessed value. The net assessed value is determined by multiplying the 100% market value by 70%, then subtracting all property-related and personal exemptions. (Note: As a result of the 2003 revaluation the veterans exemptions have been increased by 100%.) A very basic formula for determining the mill rate is: the tax levy divided by the Grand List or:
The total tax levy___
The total 2003 Grand List = Mill Rate for 2004 tax bills
Of course, in Norwalk the mill rates vary depending in which district the property is located and what city services are provided. The amount of the tax levy will be set at the end of the budget process in March. Mill rates are set on the first Monday in April. The total Grand List includes the sum of residential, commercial and industrial properties, all taxable motor vehicles in the City, and all business personal property such as furniture, fixtures and equipment. The real estate portion of the Grand List comprises about 91.5% of the total, with the motor vehicle and personal property values comprising the remaining 8.5%. Motor vehicle and business personal property accounts are revalued every year; real estate accounts are revalued only every four years.
The final numbers show that the total overall increase in the Grand List is about 54%, which includes an increase in real estate of 63% and slight decreases for the motor vehicle and personal property portions of the Grand List. The average increase in residential property is 67%.
Therefore if the Grand List increased 54%, then the current mill rates would be reduced accordingly. In Norwalk we have a range of mill rates based on services provided. These mill rates range from 27.10 in Rowayton to 28.97 in Central, South, and East Norwalk to 29.08 in the rest of Norwalk. Those residents who do not receive trash collection have a .75 mill reduction in their rate, except Rowayton which already includes the reduced rate.
To summarize, an increase in your assessment does not mean your taxes will increase by the same amount of the increase in your assessment. In fact, the revaluation alone will cause an increase in your taxes only if your net assessment increases more than the final total Grand List for 2003, which is an increase of 54%. If your assessment increases less than about 54%, then the revaluation alone will reduce your taxes.
To estimate the new tax effect based on the 2003 revaluation, again assuming the same tax levy as the current fiscal year, the Assessor has taken the current mill rates and divided by the estimated increase in the Grand List of 1.54.
A simple formula for calculating the effect of the revaluation only in various districts in the City is as follows:
Multiply the 10/1/2003 GROSS ASSESSMENT on your final REAL ESTATE ASSESSMENT CHANGE NOTICE by the appropriate district percentage below. Bear in mind that if you receive veterans or other exemptions your net assessment will be used to calculate your final tax bill.
| District |
District Description |
Effective |
No Trash |
| Tax Rate |
Tax Rate |
||
| 1 |
Central Norwalk |
1.881% |
1.832% |
| 2 |
South Norwalk |
1.881% |
1.832% |
| 3 |
East Norwalk |
1.881% |
1.832% |
| 4,5 |
Main Area |
1.888% |
1.840% |
| 6,7 |
Rowayton |
1.760% |
1.760% |
Example A: A residence in Rowayton (a current 2002 mill rate of 27.10) with a $1,000,000 market value and a $700,000 assessed value would pay $12,320 in FY 2004-05 based on the revaluation numbers. ($1,000,000 X 70% X 1.760% = $12,320, or $700,000 X .0176 = $12,320)
Example B: A property in the 4th District of Norwalk with no trash collection (a current 2002 mill rate of 28.33) valued at $500,000 with a $350,000 assessed value would pay $6,440. ($500,000 X 70% X 1.840% = $6,440, or $350,000 X .0184 = $6,440)
Just key in the 10/1/2003 Gross Assessment and the District value
stated on your Final Real Estate Assessment Change Notice.
 |
 |