The main driver for this tax increase on residential taxpayers IS the revaluation. There is no additional spending in this budget. The appraisals are based on values on 10-1-2025, which is a month before the Mayor was elected, so this is a challenge he inherits. It also can’t be blamed on the last administration, as the values are what they are. The impact of the tax increase this revaluation causes to residential homeowners is significant, and it’s real.
In full disclosure, on our house, a 28.27 mill rate would take our property taxes from $7,968 to $10,278, a $2,310 increase, which is a 29% increase. Assuming similar increases across residential properties, this is causing the legitimate concern that we are seeing expressed on social media. The folks who are articulating this concern should be seen and heard, in my opinion. We are at a challenging time when gas prices, diesel, home heating oil, and natural gas are skyrocketing. These increases will cause significant impact to family budgets, and most impact those who are trying to make ends meet and can least afford them.
I was happy to see Dr. Chess’ post on his Facebook Mayor page additional information about his proposed budget. I hope he will go into additional detail to explain the shift in tax burden the revaluation causes from commercial to residential, and why the vast majority of any tax increases are caused by the reval itself, not additional spending. Here are my calculations regarding the proposed mill rate. I am not an expert on this. If I am calculating this incorrectly, I invite correction. My ego is not more important than getting this information right.
Mayor Chess has recommended a budget of $278 million and a mill rate of 28.27 mills. When I divide $278,000,000 by 28.27 mills, I get that each mill is worth about $9,834,000. The first step when a revaluation occurs is to determine what the mill rate would be to fund the current budget (Mayor Hoydick’s last budget) of $266 million. When we divide $266 million by $9,834,000, we find that the mill rate would need to be 27.05 to fund the current budget. Then, we add the spending increase for next year. When we divide $12,000,000 million in new spending by $9,834,000, we get 1.22 mills. 27.05 mills to fund the current budget plus 1.22 mills in new spending would be 28.27 mills. To put this into context, in the example I gave above about our house, the proposed tax increase of $2,310 would be $1,867 due to the reval, and $443 due to proposed additional spending. Please note that 28.27 would reduce car taxes by 4.19 mills, and the budget calls for a reduction of $44 for WPCA fees.
I know this is a lot and it’s a bunch of math and not particularly interesting. My thinking is that the new administration is not responsible in any way for 81% of the tax increase. Revaluations have caused these issues all over Connecticut. Rather than casting stones, I hope to see a full discussion of whatever options the elected leaders have to mitigate the impact on residential taxpayers. This whole process is governed by state law, so the options are limited. I would like to see a full discussion on the topic of phasing-in the revaluation. There are pro’s and con’s to a phase-in, but the biggest pro is that it softens the one year impact of a huge tax increase, and gradually brings it in over a number of years. I am genuinely worried about the impact to family budgets of this increase in one year, even if there are some cons. According to what I have been able to find, the following towns in Connecticut are phasing-in their property revaluation right now. I expect more to be added to this list this year:
Bloomfield (beginning 2025)
Canton (beginning 2024)
Hamden (beginning 2025)
Naugatuck (beginning 2023)
Norwalk (beginning 2024)
Orange (beginning 2024)
Torrington (beginning 2025)
Waterbury (beginning 2023)
Wethersfield (beginning 2025)
Windsor (beginning 2024)
Windsor Locks (beginning 2025)
I will conclude by saying again I hope that this topic is discussed seriously and respectfully. I have seen some awful comments based on inaccurate information and it’s not constructive. This is a very difficult challenge to solve and I would rather be encouraging to the Mayor and Town Council rather than negative. The Town Council is comprised of community volunteers. They receive no compensation. They will be doing their level best to make the best decisions for the town.
