Now that the West Hartford budget has been amended and the mill rate has been set at 38.63, many are wondering how they will calculate their property taxes. One thing to keep in mind is that they will be based on a 5 year phase in if your assessment from 2005 to 2006 increased by more than 25%. Let’s do a quick example and hopefully this will help…
Let’s say your 2005 property assessment was $100,000 and your 2006 property assessment was $200,000, so a 100% increase. Your taxes for this year will be based on 1.25 times your 2005 assessment. So,
$100,000 x 1.25 = $125,000
then multiply this by the mill rate to get your taxes
$125,000 x .03863 = $4,828.75 = your tax bill for this year
But what happens in the next 4 years? Well, the difference between your 2006 assessment and the 1.25 amount you’re using this year will be dispersed over the next 4 years. So,
$200,000 – $125,000 = $75,000 / 4 = $18,750
In this example, your taxes for 2007 will be based on the assessment amount of
$125,000 + $18,750 = $143,750
Your taxes for 2008 will be based on the assessment amount of
$143,750 + $18,750 = $162,500
Your taxes for 2009 will be based on the assessment amount of
$162,500 + $18,750 = $181,250 and finally
Your taxes for 2010 will be based on the assessment amount of
$181,250 + $18,750 = $200,000
Presumably the mill rate will go DOWN over the next 4 years, so that as your assessment value rises, your taxes don’t go through the roof. Because no one wants to see a mass exodus out of West Hartford.
If you have questions on any of this, please call or email me, I’d be happy to help explain it more thoroughly, (860) 655-2125 or bergquista@raveisre.com.