WHAT A PROPERTY ASSESSMENT REALLY MEANS

An assessment is similar to an appraisal in most cases. All property assessments, by law, must be based on the market value of a property at the start of each year. That is the amount you could reasonably expect to sell it for. This figure is multiplied by the municipal and school tax rates of that year which determines the taxes to be applied to your property. The assessor first estimates the value of the property. If this opinion appears to be too high he property owner can challenge this opinion in several ways.

Key Dates
Assessment Valuation Date Each Year: January 1st
Tentative Roll Of Property Assessments Filed: Sunday May 1st
Grievance Day ( File Your Grievance Form On or Before ) Tuesday May 24th

Assessment Review Process

Full Value Assessment
Each year every assessment must be based on Market Value (also described as Full Tax Value) as of January 1st.
Determine what the assessorís opinion of full tax value of your property is.
If you believe the property can not be sold for that figure then you must set out to prove what the property would most likely sell for and request the assessment be corrected. If you are not satisfied with the assessorís willingness to make the correction, other legal actions can then be taken.

Potential Value Assessment
Some assessors deliberately assess at a portion of full market value. This is legal but quiet deceiving to most property owners. That percentage, called an Equalization Rate, must be determined so you can see what the assessor says the full market of the property is. An example of this practice is found in the City of Kingston. The assessments are reported at 32.5% of Full Market Value for the year 2005. So, if a property owner has a property worth $200,000 and sees it is assessed at $100,000 he may not realize he is over assessed. But if he divides the $100,000 assessment by (.325) he will find that the assessor is basing the assessment on a full market value of $307,692, better than a one third over assessment.

WEBB APPRAISAL WEBB APPRAISAL ASSOCIATES

JMJ

P.O. Box 3224, Kingston New York 12402

Associates

Phone / Fax (845) 338-8334

E-Mail gwebb@hvc.rr.com



LIST OF TENTATIVE 2005 EQUALIZATION RATES
Supplied By Ulster County Real Property Services

                                                                         Tentative                              Tentative

                                                                       Equalization                         Equalization

                                                                        % Of Full Value                   Rate  

Municipal Name                             

 

City of Kingston                      32.5     %                              .325

Town of Denning                   24.0     %                                 .24

Town of Esopus                     85.0     %                                  85

Town of Gardner                    100.0     %                             1.00

                        Town of Hardenburgh          79.03   %                             .7903

                        Town of Hurley                       111.82   %                         1.1182

                      *Town of Kingston                   100.0     %                             1.00

                        Town of Lloyd                            95.0     %                              .95

                      *Town of Marbletown              100.0     %                            1.00

                      *Town of Marlborough            100.0     %                            1.00

                        Town of New Paltz                 100.0     %                            1.00

                        Town of Olive                                0.77  %                         0.0077

                      *Town of Plattekil                     100.0     %                              1.00

                        Town of Rochester                   60.0     %                             0.60

                      *Town of Rosendale                100.0     %                              1.00

                      *Town of Saugerties                100.0     %                              1.00

                        Town of Shandaken                   31.0     %                            0.31

                        Town of Shawangunk            22.0     %                               0.22

                        Town of Ulster                              90.0     %                            0.90

                        Town of Wawarsing                      2.6      %                          0.026

 

ē * Towns that have been revalued. The new assessments will be filed May 1st.
ē To determine the assessors opinion of the full tax ( market ) value of your property. Divide the equalization rate into the assessment. These figures may change slightly on May 1st. Check with your Assessor.


 

Get Copies Of Your Assessment File:
You need to know the facts about your property the assessor has relied upon in order to value your property. The records are available to everyone at the assessorís office. Go to the office and ask the assessors assistant to pull the files for your review. Then ask for the file to be copied so you can go home and study the data. The cost, established by state law, is twenty five cents a copy. If you find errors in size or any other items that over assesses your property, the assessor can adjust the assessment for.

Comparable Sales:
 Most assessors maintain a comparable sales book you can look at. Pick out the sales most similar to your property. Write down the data or ask the assessorís assistant to copy this data for you to take home. Sit around the kitchen table or your office and review the differences. Then drive by these properties to enhance your understanding of the differences between your property and the comparable sales. Write down the evidence where these sales indicate your property is over assessed. This is the procedure a professional appraiser initially follows in order to understand the market and the value of the property under study.

Real Estate Agents:
Professional real estate agents are g good source of market data. Some may be willing to prepare a report and represent you if there is a supportable claim for an assessment reduction.

Present Use Value: The New York State Board of Real Property Services reports that in establishing assessments, the assessor must value property in accordance with itís current use, rather than itís highest and best use. The one exception is for vacant land that is used for no purpose; this value may be based on highest and best use.

The Appraisal Of Present UseWith Income Producing Properties:
The primary purpose of specialty property, such as funeral homes, health spas, bowling alleys, is to earn income. The most accurate method in appraising these type properties, for assessment purposes, is the Income Approach. To determine the wealth specialty real property brings to the enterprise the appraisal should determine the actual gross annual income then subtract out the all expenses and reasonable profit incurred by the good will, business, and facility portions of the enterprise. The income remaining will be the net income (NI) available to the real property. This income can then be capitalized at the current market over all investment rate (OAR) to determine the reliable Present Use Value attributable to the real property. The procedure is to divide the (NI) by the (OAR) which will indicate the appropriate value the assessment should be based on.