Assessor’s Office

Citywide Reappraisal

On July 9, 2018, the Vermont Tax Department provided notice to the City of Burlington of an order to reappraise all properties in Burlington. Burlington property values are no longer meeting equitable valuation standards set by the Vermont department of Tax and the International Association of Assessing Officers organization (IAAO).

In response, the Assessor’s Office has contracted Tyler Technologies Inc. to conduct the general reappraisal project. Tyler and the City of Burlington have concurrent goals for this project:

Goal

Reset property valuations to current fair market levels to comply with Vermont property tax laws, which will equitably reset the tax burden.     

Objective

Provide the city with the highest quality citywide reappraisal.

The Assessor’s schedule for the reappraisal has a valuation date of April 1, 2021, which is the Tax Department’s mandated completion date.  The new values will be effective for the tax year 2022 (tax year beginning July 1, 2021).

Timeline

8/2019

Install Patriot Properties AP5 software & conversion of data

7/2019 – 9/2019

Baseline Statistical Testing & setting Assessment Districts

8/2019

Public relations plan

9/2019

Data Mailer letters to property owners

9/2019

Hire two full-time temporary staff in Assessor’s office

9/2019 – 12/2020

Property data collection and valuation table calibrations

1/2021

Posting new values and notification letters to property owners

2/2021

Informal property valuation hearings

4/2021

Formal hearings begin

7/2021

Tax Bills with new values issued

Residential Property Owners

The Assessor’s Office staff and the Tyler Technologies Inc. reappraisal team will be mailing “data mailer” letters to all residential property owners. We ask that all property owners review their property data and to notify us if there is a correction needed with the property data we have. Your input is important for us to render a fair property valuation of your property. We greatly appreciate your cooperation with this revaluation project.

On-site property data collection will be conducted by Tyler Technology appraisers. These appraisers will also use other property data resources such as: high resolution imaging, property data obtained online, permit history review; geospatial tools to analyze valuation, on-site building changes and land sizes.

Commercial Property Owners

Commercial Property owners will receive an Income and Expense form to be filled out and returned to the Burlington Assessor’s office. Directions can be found below or here. I & E information is important for the determination of the property value. We are asking for the rental and leasing information for your property. We are not interested in the income and expenses of your business.  Commercial properties will be analyzed and valued based on appraisal methods via the Income Approach to value. If you have any questions you may contact John Valente, Commercial Reappraisal Contractor, at (413) 387-3428. Thank you for your cooperation with our request for information.

How will the Reappraisal impact individual property tax bills?

The goal of the reappraisal project is to value all properties at 100% of fair market value. This means that all property values are likely to increase in Burlington because the market demand for properties has increased since 2005. Market analysis tells us that the change in the real estate market has not been uniform. Market change has been different for different types of property and different locations. Overall, the market value of properties has increased. Therefore, the total grand list will be higher at the conclusion of the reappraisal. To balance real estate taxes the tax rate will be adjusted downward proportionately to raise a similar amount of taxes. City government is not allowed to significantly increase taxes as a result of a reappraisal with much higher values. The city charter has a “revenue neutral” provision that makes a portion of the tax rate adjust equivalently downward when property valuations are reassessed upward as a result of a city-wide reappraisal. Individual property valuations may change at different rates. Some will have a greater change than others and some will have less of a change than others. The prior value is not applicable to the new value. Some property owners will see property taxes increase and others owners will have a decrease in property taxes.  

Example of the municipal tax rate change

 

Total grand List Value /100 of value

Municipal Tax Rate

Tax revenues

Pre Reappraisal

$38,000,000

.8800

$33,440,000

Post Reappraisal

$48,000,000

.6967

$33,440,000

Post Reappraisal

Grand List increases

Tax Rate adjusted downward

Same amount of revenue.*

*There are a few tax rates which make up the total municipal tax rate which are “fixed in charter”. These rates neither go up or down as a result of the reappraisal. They are fixed rates per the City Charter. These rates are; parks, penny for parks, highway/streets, and library.  

The tax revenues have to relate to the annually approved budget.

Reappraisal Company for the General Reappraisal:

Tyler Technologies Inc. will conduct the general reappraisal project. Derek Arnold, Regional Manager; Blane Bowlin, Project Supervisor, and Gynt Grube, Associate Project Supervisor. Blane Bowlin, Project Supervisor worked on the prior Burlington reappraisal project. Tyler’s Proposal meets all the criteria we requested in the RFP. Tyler’s team has collaborated on previous reappraisal projects with John Valente, Commercial Reappraisal Contractor, of SOA Inc.

Reappraisal Company for the Commercial Reappraisal:

SOA Inc. will conduct the valuations of all the commercial properties. This type of property is more difficult to appraise and takes a higher level of real estate market knowledge and mass appraisal expertise. Mr. Valente is a leader in mass commercial appraisal methods. Recently, he has conducted appraisals on properties such as the Bradley International Airport, City of Hartford commercial properties, nursing homes and cell towers. He has litigation experience with many complex real estate valuations.