Equalization Analysis 2017 for tax year 2018
Reassessment for Tax Equalization Purposes
Dear property owner,
Over the past ten years, the overall market value for real estate has changed, from the property values set for 2006, as a result of the last city wide reappraisal. Demand for Burlington property has resulted in most property values increasing since 2006. Similar to most real estate markets, market value change has not been uniform among all property types or locations. As a result, property taxation inequities have evolved over the past ten years since the completion of the city wide reappraisal. Each year the Assessor’s Office conducts statistical studies to determine the overall level of appraisal (LOA) of all properties and the LOA of each class of property in an effort to better understand the fairness of the property tax burden. Regarding Vermont law, the goal is to have fair property appraised values so that the tax burden is spread evenly among all taxable properties. The study can be downloaded by clicking the link at the bottom of this letter.
Part of the process of these statistical studies involves annual market sales reviews. Each year, the City Assessor’s office and the State Tax Department measure the level of appraisal (LOA) - the relationship of current market sales to the appraised values. As of this writing, the determined overall LOA in Burlington is 84%.
If every taxable property was within 5% of the 84% LOA, then the tax burden would be evenly distributed. Most properties are appraised within 10% of the LOA. This is an indication of a fair distribution of the tax burden.
The City Assessors office wants fair appraised values for all taxpayers. The equalization analysis study helps us understand the equities and inequities in assessments. The LOA’s for major category of property is compared to the overall LOA. If the category LOA is outside of 15% of the overall LOA, then that category is deemed to be inequitable and a plan for correction is needed.
The same analysis is conducted on the assessment districts of those categories. This will indicate areas of town for which a category has fair or unfair appraised valuations.
The most recent equalization analysis indicates that all categories are <15% of the overall LOA. However, when each category is reduced to the categories assessment district, we found inequities greater than 15%. This indicates unfair property appraised values.
Click the individual links below to obtain the Equalization Analysis for catagory and neighborhood: