CT PROPERTY TAX MINUTE: October 2011
The Market as of the 2011 Revaluations
October 1st is the statewide assessment date in Connecticut and many communities, large and small, are undergoing revaluations in 2011. Reports indicate the Connecticut commercial real estate markets, like several markets around the country, continue to crawl along.
The markets for commercial properties in Fairfield County are more robust than the markets in Hartford and New Haven counties, but leasing and sales activity in all counties is far from the peaks we saw in 2007.
Leasing activity for office, industrial and retail properties has been more favorable than it was in 2009 and 2010, but job growth continues to be modest. A few large employers in the Hartford markets, including The Hartford Financial Services and General Reinsurance, have consolidated or downsized their operations in 2011.
As the 2011 revaluations for most municipalities are the first they have had since 2006, commercial property owners are likely to see decreases in their properties’ fair market values and assessments.
While values and assessments may decrease as of October 1, 2011, the tax bills issued in July 2012 may not be lower as municipalities may have to increase their mill rates to meet their financial obligations.
For more information, please contact Laura A. Bellotti at 860-424-4309 or firstname.lastname@example.org.
The Significance of October 1
October 1 is a key date in the Connecticut assessment community. This is the day on which values and assessments are determined for both real estate and commercial personal property and preliminary Grand Lists are established. Key to the process is listing the owners of record for each parcel of real estate and determining property tax exemptions. Commercial owners must declare by November 1 all personal property located in a particular municipality as of October 1.
There is no particular reason why October 1 was chosen as the lien date in Connecticut, but it likely has something to do with the timing of the assessors’ other duties so that tax bills may be issued at the start of the municipal fiscal year on July 1. Between October 1 and July 1, assessors must complete several functions so that tax bills may be mailed in a timely fashion.
Initially, the assessors must list, value and assess all real and commercial personal property before determining exemptions. Once values, assessments and exemptions are determined, the assessors must finalize and sign their Grand Lists by January 31. After that, the local boards of assessments appeals address taxpayers’ appeals from February to April and annual budgets are determined. Mill rates then are set based on the total taxable value on the Grand List divided into the revenue required to meet annual budgets, exclusive of state and federal aid. Finally, tax bills are generated in June/July.
All of this is accomplished with October 1 being the operative date.
Did you know?
2011 personal property declarations are due November 1.
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