Municipal Law

Municipal-wide property tax reassessment and revaluation:

The municipal-wide periodic revaluation of all real property within a jurisdiction is one of the most challenging and costly undertakings any town, city or village in New York State may embark upon.  The Property Tax Practice at Huff Wilkes, LLP provides legal counsel to municipalities considering revaluation, as well as legal support at each step in the process of conducting an impact study and revaluation. 

The goal of a revaluation is to achieve the highest degree of property tax equity among property owners possible throughout the taxing jurisdiction as well as providing the municipality with an up to date record of all property "inventory".  Generally, the reassessment process involves the following approach:

• Obtain current data on properties and the local market;
• Assemble the data and the information about the local market in a meaningful manner;
• Using recognized techniques for analysis:
  
  • Ascertain the factors that are most relevant in determining market value;
  • Change assessments where required based on the results of the market analysis;
• Perform a validation component that confirms whether the assessment changes were appropriate.

To maintain assessment equity, these steps would be periodically and regularly performed.

The capacity to annually reassess requires adequate funding, management, and the use of mass appraisal techniques.  Working with experts in the field of assessment administration and statistical analysis, the Property Tax Practice at Huff Wilkes, LLP, can guide a client municipality through the revaluation/reassessment process from initial consideration, commissioning and reviewing an impact study, the preparation of a Request for Proposals (RFP) for a reassessment contractor that is properly tailored to the unique needs of the client so as to avoid wasted taxpayer dollars, and the many steps involved in conducting the revaluation that lead to the production of a new assessment roll.

Quite a number of options must also be considered, including, significantly, the decision to adopt the "Homestead" tax option, which permits a split tax rate between residential and other owners.  The aim of this option is to avoid significant tax burden shifts to residential properties, but implementation of this option also requires significant analysis and policy considerations, as it may not be appropriate for every situation and can result in unexpected consequences.  The Property Tax Practice at Huff Wilkes, LLP advises clients on the various considerations that must be analyzed in connection with a revaluation.

In addition, an effective Public Information Campaign must be utilized to ensure that the community is well-informed and the process is as transparent as possible.  The Property Tax Practice at Huff Wilkes, LLP is a part of this process, and works with the revaluation contractor to promote public understanding, awareness, and cooperation throughout the project. 

Topics typically addressed in a public information campaign include:

• significance of real property tax;
• necessity of project;
• purpose and methods of project;
• role of municipality and assessor;
• role of project contractor;
• role of ORPS;
• necessity of data collection;
• caliber and training of data collectors;
• cooperation of parcel owners is key to success;
• assessment disclosure aspect throughout the project; and
• ongoing nature of system

Reassessment projects involve many terms and phrases that are unfamiliar to the layperson and sometimes to municipal officials as well.  For a Glossary of Terms used in the revaluation process, click here.

In addition to the expertise of all the members of the Property Tax Group at Huff Wilkes, LLP, partner David C. Wilkes is a recognized specialist in international property tax reform for developing and transitional nations around the world.  A member of the International Property Tax Institute and a Legal Committee Member of the International Association of Assessing Officers, he has worked on a variety of assignments on behalf of major donor organizations.  He has assisted countries in the decentralization of government and promotion of local fiscal autonomy through property taxation, the improvement of valuation standards for taxation, and the determination of revenue raising practices and goals in accordance with international standards.

The property tax practice at Huff Wilkes, LLP is well equipped to provide effective and efficient representation and legal counseling in the municipal-wide reassessment of real property for tax assessment.