The Town of Bethlehem has begun a property reassessment project that could very well impact every homeowner in town.
The undertaking is set to be completed within the year, in time to issue next year’s tax bills. The assessments will then be used for 2015 town and 2014-2015 school tax bills.
Officials said the full reassessment will target all residential, commercial and utility properties within the town to make sure all sites are assessed fairly and at full market value.“This is not meant to bring in more money for the town, but to make sure everyone is paying taxes at the same level,” said Town Assessor Patricia McVee. “This should actually lower the tax rate for most residents.”
McVee said the last reassessment was done in 2006. She said her analysis has shown some commercial properties in town are assessed far below market value, and added it is illegal to reassess individual properties.
This project wouldn’t necessarily bring the town more revenue, but will likely shift some of what residents are paying onto commercial property owners.
McVee said from the research she’s done, most homeowners should expect the value of their home to remain the same. Although the values of residential properties nationwide have fallen, prices in Bethlehem have stayed competitive. Homes purchased above $800,000 could see a slight difference. There are also exceptions to the rule, like if homeowners have done major improvements since their last assessment.
“The end result is going to be residential owners will be pleasantly surprised,” she said.
The major concern is with commercial properties, some of which are only valued at 50 percent of their market value. McVee gave the example of an apartment complex in town, which sold for $25 million but is only assessed for $13.
“It should be assessed for $25 million,” she said. “We have a lot of new apartments going up in town, and last year was the first year they were on the assessment rolls. I calculated their full market value and when they received their change of assessment notices, they all came knocking at my door. They never went to grievance because we settled with them with the understanding we were doing this reassessment project.”
McVee said most commercial property owners already know if their site is assessed for less than it is worth, and understand it was only a matter of time before it would be reassessed.
The town is contracting with GAR Associates to handle the commercial portion of the project, with the residential and utility portion handled in house to save the town nearly $300,000. The Assessor’s Office will take on an additional part-time employee who will most likely come from another town department.
The $300,000 cost of the project was planned for in the budget. Supervisor John Clarkson said the funds were allocated from the $1 million the town saved last year through employee attrition. The rest went into the town’s reserve pension fund. The town also expects to receive some state aid for the project.
“We felt this was a good time to reassess and the town will be much better served by an accurately valued tax base,” Clarkson said.
McVee said the project will be completed in phases. Residential property description reports have already been sent to all residents. The reports help the town take inventory on the homes of residents. They ask how many bedrooms and bathrooms are in the homes and if any improvements have been made. Most will be able to simply fill out the report and mail it back.
McVee said about 1,300 forms have already been returned with corrections on them. Once all the data is entered into the town’s system, residents with significant changes may need to set up a time for a physical inspection to take place. Those should take place over the summer.
“Homeowners think they are going to be paying more, but really not,” McVee said. “We want to make sure everyone is paying their fair share of taxes. It’s conceivable people could be looking at a decrease.”