Q: IF NORWALK WANTED TO PASS AN OPERATING BUDGET THAT WOULD INCREASE SPENDING BY 3 PERCENT (%), WHY COULDN'T THE CITY DROP THE MILL RATE TO A LEVEL THAT WOULD MAKE RESIDENTIAL PROPERTY TAXES INCREASE BY ONLY 3 PERCENT (%)?

A: IN GENERAL, THIS GOES BACK TO UNDERSTANDING THE PREMISE OF THE PROPERTY TAX. WHEN THE VALUE OF YOUR PROPERTY CHANGES, YOUR TAX BILL MAY CHANGE AFTER REVALUATION IF OTHER PROPERTY VALUES ARE NOT CHANGING AT THE SAME RATE AS YOURS.

BECAUSE PROPERTY TAXES ARE BASED ON THE VALUE OF YOUR PROPERTY, AS AN INDIVIDUAL PROPERTY VALUE CHANGES, ITS RELATIONSHIP TO THE TOTAL PROPERTY VALUE IN NORWALK CHANGES. IN THE FICTITIOUS EXAMPLE BELOW, ASSUME NORWALK CONSISTS OF TWO PROPERTIES. IN 1983 PROPERTY #1 IS VALUED AT $62,860 AND PROPERTY #2 IS VALUED AT $80,000. THESE VALUES REMAIN THE SAME UNTIL 1998. IN 1999 A REVALUATION IS PERFORMED AND PROPERTY # 1 IS VALUED AT 157,000 AND PROPERTY #2 IS VALUED AT $128,000. IF THE TOTAL TAX LEVY, THE AMOUNT OF MONEY TO BE RAISED FOR PROPERTY TAXES IS $4,000 IN 1998 AND $4,120 IN 1999 (A 3% INCREASE). THE PROPERTY TAX SHIFT WOULD LOOK LIKE THE FOLLOWING CHART.

* THE TAX RATE IS THE TOTAL TAX LEVY DIVIDED BY THE TOTAL ASSESSMENT, E.G., FOR THE 1998 GRAND LIST, $2,000/$100,000 (44,000 + 56,000) = .02000

AS YOU CAN SEE, ALTHOUGH THE TOTAL TAX LEVY INCREASED BY ONLY 3% (2,000 TO 2060). PROPERTY #1 INCREASED AT A GREATER RATE THAN PROPERTY #2 AND AS A RESULT ITS TAX BURDEN CHANGED FROM 44.0% ON THE 1998 GRAND LIST TO 55.1% ON THE 1999 GRAND LIST