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
1
Reassessment
Does Not
Raise Tax Levies
Reassessment provides
an equitable redistribution
of the property tax. ***
***
Now we will show you how.
2
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
3
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.
4
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)
5
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 2007. 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.
6
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 $0.23229 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 $0.23229 tax rate = $150.99
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.
7
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.
8
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.
9
$$$ State Aid $$$
 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
10
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 MeetingsAssessment Appeal process
11
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
12
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??
13