Property Tax Administration - 2009 Tax Year
The Division of Property Valuation and Review (PVR) is required to annually determine the equalized education property value and coefficient of dispersion. An equalization study is done to make those determinations. This year’s equalization study was based on the assessed value of property as determined from municipalities’ grand lists as of April 1, 2009. The determination of equalized property values comes from a comparison of grand list values to actual market sales or appraisals of property. Based on the difference between the listed values and sales or appraisals, ratios are computed and used to derive an estimate of fair market value (or use/stabilized value, where appropriate) for each municipality.
The study’s estimates of value are called equalized education property values (EEPV). The EEPVs determined as part of the 2009 equalization study are a measure of the property wealth of a school district and become an important data element in the setting of education tax rates for all Vermont school districts.
The increase in listed value statewide has slowed. Two factors generally affect the listed values—new construction and reappraisals. In 2009 there were reappraisals in 38 towns. In the three years previous there were, 44, 47 and 54. The continued cooling of the real estate market will likely mean fewer and less frequent reappraisals will be necessary in the ensuing years.
The state total equalized education property value followed suit rising only 2.17% over last year.
For 2009 the state total equalized municipal property value is $83.8 billion compared to $82.1 billion in 2008 and $77.0 billion in 2007. That’s an increase of 6.6% and 2.1%, respectively.
The total taxable personal property (machinery/equipment and inventory) value this year is $852.2 million. That’s a slight decrease from last year’s $852.8. This property is taxed for municipal services but not for education costs.