1 Reassessment City of Olean Public Information June, 2007 John Brearley, JDBrearley Consultants Joseph Emminger, Emminger, Hyatt, Newton & Pigeon Nancy Champlin, Commissioner of Assessment Dennis Fisher, ORPS Customer Relationship Manager

2 Reassessment Does Not Raise Tax Levies *** Reassessment provides an equitable redistribution of the property tax. *** Now we will show you how.

3 New York State Assessment Standard What the Law Requires!!! The "Assessment Standard" (RPTL 305): "all real property in each assessing unit shall be assessed at a uniform percentage of value“. The assessor signs an oath to this effect when signing the tentative assessment roll every year! "value" is defined as "market value" - the most probable sale price, in a competitive and open market, between a willing and knowledgeable buyer and seller, made without duress to either party tax bills must display the municipality's uniform percentage and the parcel's market value

4 Important Facts About Property Reassessment Increased assessments do not cause increased taxes. Your tax bill results from the budgets created by the School, City and County. Your assessment has (probably) not changed since 1961, yet your property tax has increased- this is due to increased budgets.

5 Important facts about property reassessment Increased assessments will cause the TAX RATE to decrease in direct proportion to the increase in assessed value. Example: if all assessments were doubled, the tax rate would be half as much. Sample Property : Current Assessed Value $5,000 Combined Sch, Cty, City Tax Rate - $500/thousand assessed value Tax Bill (5 x $500 = $2,500) New Assessed Value $10,000 Combined Sch, Cty, City Tax Rate - $250/thousand assessed value Tax Bill (10 x $250 = $2,500)

6 Effect of Equalization Rate on Property Tax Exemptions The equalization rate is a factor developed by the NYS Office of Real Property Services. This number describes the relationship of the community’s assessments to market value. The City equalization rate for 2006 is 8.5% and will be 8.0% for In fact, the equalization rate has declined every year since the last Citywide reassessment. Let’s look at what happens to your STAR exemption because of this.

7 Effect of Equalization Rate on Property Tax Exemptions A) Max. Enhanced STAR exemption $60,117 X 8.5% equalization rate = $5,110 amount of exemption. Result- avg residential assessment = $5,500 minus 5,110 = 390 taxable school ; 390 assessed X $ tax rate = $90.59 tax bill B) Max. Enhanced STAR exemption $60,625 X 8.0% equalization rate = $4,850 amount of exemption. Result- avg residential assessment = $5,500 minus 4,544= 650 taxable school ; 650 assessed X $ tax rate = $ tax bill This example demonstrates that your exemption loses value every time the Equalization Rate decreases. Combine this with increased School taxes from budget increases and your School taxes increase from two causes, even though your assessment did not change. City Assessor does not determine Equalization Rate.

8 Goal of the Project The goal of the reassessment project, as you may know, is to establish uniform and equitable assessments at 100% of value. This means that the equalization rate will also be 100%. This means that you will receive the full benefit of this and all exemptions. The City intends to maintain assessments at 100% every year in the future.

9 Advantages of a Stable Property Tax Base Through Reassessment Property owners receive the full benefit of property tax exemptions by local control of the equalization rate. Equitable distribution of County Sales Tax revenues. Improved Bond Rating – Bonding companies such as Moody’s and Standard & Poor recognize the fiscal advantage of a stable property tax base in rate policy. Equity – property owners receive fair and equal treatment when all properties are assessed at a uniform level.

10 $$$ State Aid $$$  Annual Aid  Up to $5 per parcel annually. City recovers cost over time  Requirements:  Annual maintenance of assessments at 100% by the City Assessment staff.  Municipal plan to reinspect and reappraise every parcel at least once every six years

11 City of Olean Reassessment Project Timeline May 2007 – December 2007 Field activities: Data verification and collection, photos Data entered on City database, quality control May 2008 – December 2008 Valuation Activities: Sales verification and analysis Valuation testing Field review of predicted values Finalize tentative assessments February 2009 Public Informational Meetings- Assessment Appeal process

12 City of Olean Reassessment Project Timeline March 1, 2009 Mail Assessment Full Disclosure Notice April 2009 Informal Assessment hearings May 1, 2009 File Tentative Assessment Roll 4th Tues in May 2009 Board of Assessment Review (Grievance Day) New Full Value Assessments will be used: September 2009 School Tax Bills January 2010 County Tax Bills May 2010 City Tax Bills

13 Reassessment Does Not Raise Tax Levies The property tax rates are reduced proportional to the increase in assessments *** Reassessment provides an equitable redistribution of the property tax. *** QUESTIONS??