Thanks to Diantha for pointing this article out. She writes,
“Chester Vt will soon be singing Vt’s hit song “I got the reappraisal blues”
(So much for affordable housing)”
I’m not sure how I feel about this. For one, as a homeowner, I along with everyone else, want to pay as little taxes as possible. Seriously, who doesn’t? However, taxes or not the rate of increase on just purchasing a home is astronomical. I don’t know what the mean price of a house is in Chester, though it shouldn’t take too much work to find out. I can’t imagine it being under $180,000 though – and even that figure boggles my mind. The first house my wife and I bought was bigger than the one we are in and came in at a whopping $22,000! (OK, it was many many years ago.)
Here is where I have mixed feelings. I do think that a fair tax should be levied on the fair value of the home. Anyone who has owned a home for any length of time knows that unless a reappraisal was recently done, your not going to pay taxes anywhere near the amount that the home is actually worth. We all know it. It’s part of the game. And if you can buy your home for $80,000, pay taxes on $50,000, and sell it 10 years later for $200,000 still paying taxes on 50, well then we feel like we won. We not only got a huge capital gain, but feel a little like we “screwed the man.”
Getting hit with a reappraisal during that time, and suddenly it’s not so fun anymore. Now your paying taxes on “approximately” what your home is worth, and that’s not cool. No one wants to do it! Sure, everyone always tells the city every time they upgrade their property, right? “Um, why yes Mr. Appraiser, that is correct! Still a cold damp unfinished basement! No family room down there, nope nope nope!”
The problem boils down to whether you think that the appraisal is a fair value or not. It’s definitely not when your living there, yet when it comes to buying and selling, it’s a lot easier to go with what the city said and not what it actually sells for! Unfortunately, if you want to live in the same household forever, well that’s when it hurts. Sometimes it hurts so bad that you wind up selling whether you wanted to or not, and that’s not cool.
So what’s the solution? There is only one.
Get involved in how it’s spent.
What you pay for taxes is going to go up whether you want it too or not. That’s just life. Everyone needs more money to live on these days, as do the workers for the city, the schools, etc. Everyone also wants the services, just doesn’t want to pay for them. (Just look at what it takes to pass a school budget!) However if you go to the town meetings, (something I’m guilty of not doing,) and making sure you vote on election day, (every time I’m proud to say,) than you won’t feel so bad when signing that check every year. It’s tough to swallow that it is the choice of a few hundred people that affect the thousands that live here, yet it happens time and time again at the polls. So few actually vote. It’s sad.
So that’s my editorial piece. I’m not going to like the appraisal and my taxes going up. I will like the fact that those that don’t spend the majority of their time here will pay a fair share, though. But it will put more money in the town coffers, and hopefully that will be put to good use benefitting us all.
And that is up to us!
This is taken from the following article.
Residents brace for reappraisal
Many properties could double in market value
By Dan Bustard, Staff Reporter
Eagle Times, March 27,2008
http://eagletimes.com/main.asp?SectionID=1&SubSectionID=4&ArticleID=6638
CHESTER - A hefty increase in values awaits many property owners once Chester completes its reappraisal this spring. But don’t blame higher tax bills on the higher values.
Home visits have been completed by listers and Automated Property Assessment Services, the firm hired to help the town with its first reappraisal in 17 years.
Reviewing the data is the next step and should take four to six weeks. Then new values and a new grand list will be set in May, somewhere around twice the approximate $20 million grand list the town has now.
“You are going to see a lot of properties double,” board of listers chairwoman Wanda Purdy said.
The town is reappraising roughly 1,820 parcels.
With many residents and second home owners worried about their tax bills, Purdy said it is important to point out the amount of spending approved during town meeting will play a bigger role than higher property values this year.
“I think (any tax increase) will be based more on town meeting,” she said.
In recent years many southern Vermont towns have performed reappraisals due to the drop in their common level of appraisals, a comparison between recent property sales and assessments on their grand lists.
Chester’s common level of appraisal was below 80 percent in 2004 and sits at 56.28 percent for 2008.
The slump in real estate experienced across the country is a trend being followed closely in relation to the reappraisal. Listers have continued to post a sales board in town hall, showing property sales in the past few years, along with asking prices in local newspaper advertisements.
Sales made since the start of the year have not shown a drop in price, only more time needed to make the sales, Purdy said. Information shows New England has not seen a large drop in property values, she said, and with spring slowly starting people are beginning to look around.
“We are seeing a lot of properties changing hands again,” Purdy said.
The reappraisal is expected to hit large landowners for a simple reason.
“Land values have increased dramatically in the last three or four years,” Purdy said.
Generalizing beyond that is difficult at this point, based on the type of property and the part of town where it is, she said.
Dan Bustard can be reached at (802) 885-1707, or by e-mail at dbustard@eagletimes.com.