2% of homeowners contest valuations

By John Howell
Posted 4/21/16

So you were one of the 750 residential property owners who thought your home was overvalued in the recently completed citywide full revaluation and made an appointment to review the numbers.

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2% of homeowners contest valuations

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So you were one of the 750 residential property owners who thought your home was overvalued in the recently completed citywide full revaluation and made an appointment to review the numbers.

About 600 of you kept that 15-minute appointment with appraisers from Tyler Technologies Inc., which performed the residential revaluation. Now you are waiting to see whether your arguments had an impact.

City Tax Assessor Christopher Celeste said data provided during those one-on-one hearings is being reviewed and letters with the outcome of appeals should be in the mail within a couple of weeks.

But overall, based on prior citywide revaluations and numbers of complaints, this revaluation ranks among the quieter ones, which could be taken to mean that generally homeowners are in agreement with the values. Less than 2 percent of the city’s 35,573 residential property owners contested their valuations. In prior full revaluations where appraisers visit every property, although they may not gain access, the number was close to 4 percent, if not higher.

But then two factors seem to be at play, which could account for the general agreement with increased property values. Home prices are up, and while many might not see it in their paychecks, economists are saying the country and even Rhode Island is recovering from the Great Recession. Further, the overall increase in residential values from $5.7 billion to $6.1 billon represents a 7 percent increase, which is not off the charts. The total value for commercial properties went from $2.19 billion to $2.27 billion, an increase of 3.8 percent.

Celeste said his next step would be to sign off on whatever changes in valuation Tyler recommends. He’ll also be looking beyond individual complaints to see whether issues raised by one homeowner might apply to a neighborhood or similar properties. He observed that valuations take into consideration sales made during 2015 as well as types of houses and neighborhoods. His point is that a flaw detected in the data used in evaluating a given property may also apply to other homeowners, resulting in an adjustment. Adjustments aren’t limited to those who requested a hearing.

Celeste is on a tight time schedule to finalize the revaluation. The administration is in the process of preparing the 2016-17 fiscal budget, and tax rolls need to be certified before bills are issued. In addition to residential and commercial valuations, the assessor is also faced with certifying tangible and motor vehicle values. The city taxes about 115,000 motor vehicles. He expects the process of certifying the tax rolls will be completed by mid-May.

As for those who failed to make an appointment to review their property valuation, or for that matter don’t agree with the outcome of their hearings, they can still question the assessed valuation. They should wait until they receive their tax bill in June to contest the value. Celeste said he would review those appeals, and if not satisfied with his ruling taxpayers can appeal to the board of tax review. The process doesn’t end there if taxpayers aren’t satisfied. The next step is an appeal to Superior Court.

Even if appealing, taxpayers are required to pay their tax bill in full. In the event values are reduced because of the appeal process, an abatement in taxes would be granted the taxpayer. In instances where the property owner has sold the property, the city would issue a check to reflect the amount of the overpayment.

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