After a long winter in our region, most folks are eager for nicer weather. Take advantage of the nicer weather by taking a trip to your local Town or City Assessor’s Office. While mundane sounding, the effort could be well worth it when you get your property tax bill.
There isn’t a fixed percentage at which a property must be assessed at in New York State. Many communities rely on the state to provide something called an “Equalization Rate”. Each community determines its “Total Assessed Value” (AV) while the state determines the municipality’s “Total Market Value” (MV).
TOTAL AV ÷ TOTAL MV = EQUALIZATION RATE (ER)
An example would be a municipality that hasn’t reassessed in quite some time would tend to have a much lower ER. Let’s say that your property assessment is $135,500 in a town that has a 26.7% ER. $135,500 ÷ 26.7% = $507,491 or the Fair Market Value (FMV) of your property per the assessor when your property’s true market value may be significant less. Assessments of all parcels in your community are a matter of public record. This means you can visit your local assessor’s office to review the assessed values of similar properties to compare whether you’re being fairly assessed and taxed. Many communities have this information online.
Most every community in the Capital Region elects to use the 4thTuesday in May as their official Tax Grievance Day. Start early, as it can be a time consuming process. At NAI Platform we provide a wide variety of services to our clients that help them determine a current market value for their property and better understand the market with respect to their commercial property. Contact me if you would like more information on buying, selling, leasing or valuing commercial real estate.
Jay Verro, CCIM
14 Corporate Woods Blvd.
Albany, NY 12211
Direct: 518-465-1400 ext:214