REVALUATION

The Dictionary of Real Estate Appraisal, Third Edition (1993 as published by the Appraisal Institute)
defines Revaluation as....."a mass appraisal of all property within an assessment jurisdiction to equalize assessed values...."

Purpose

The primary purpose of revaluation is to eliminate any inequities that may have developed since the implementation of a previous revaluation

Accomplished

This is accomplished by updating the assessments of real property to reflect their fair market value as of the date of a revaluation. "Fair Market Value" can be defined as the price paid for a property as negotiated between a willing buyer and a willing seller in a reasonable amount of time.  Upon the implementation of a revaluation, there is a balancing of the town's real property among taxpayers.

The problems with a tax burden shift are exacerbated by the length of time between the implementation of revaluations.  Over a ten year period the assessment ratio of 70% cannot be met as the property values increase .

Results

The results, in most mid sized to large towns, is traditionally a shift in the property tax burden from the commercial to the residential sector.  One reason for this is that the fair market value of residential and commercial real property increases at different rates.

In many small to mid-size towns, there is virtually no shift from commercial to residential because of the small volume of commercial properties.  Instead the shift usually encompasses properties within the same class.  This is due to the fair market values of residential properties in some neighborhoods increasing at a higher accelerated rate than the fair market values of residences in others.

Periodic revaluations are an integral part of a sound assessment system.  A balancing of a town's real property burden among its taxpayers cannot be accomplished unless revaluations of property are conducted on a regular basis. 

When completed closer together the impact on the taxpayer is less due to the fact that the properties have less time to show large discrepancies in the rise and fall of values.

State Laws Affecting Revaluation

State Statute 12-62 requires that towns in Connecticut implement decennial revaluations of real property.

Public Act 95-283 requires towns to statistically update assessed values in the fourth and eighth years between the years in which a revaluation, incorporating the physical observation of property, is implemented.

Nothing in State Statute 12-62(b) prohibits a town from effecting more frequent revaluations.  A town could choose to implement a revaluation in any or all of the years between those in which a revaluation must be implemented as required by law.