Frequently Asked Questions

Q. What is the difference between the market value and assessed value of my property?

A. The market value of your property is generally defined as what your property would sell for under normal conditions. For residential properties, your assessor generally determines market values by comparing a property with similar properties that have sold in similar neighborhoods, giving consideration to other factors possibly affecting market value. In many communities, where assessments are maintained at a uniform percentage of 100, your assessment is market value. In other words, your assessed value would equal market value. If your community is assessing at a fractional percentage of market value, your assessment should be based upon the percentage being used throughout the community. For instance, if the market value of your home is $100,000, and your community is assessing at 30 percent of market value, your assessment should be $30,000.

Q. Won’t my taxes increase if my assessment is adjusted?

A. Your assessor does not increase your taxes. Assessors are trained to be appraisal professionals; it is their job to make sure that the assessments are accurate and equitable, which provides the basis for fair distribution of taxes among the property owners within the assessing unit. Keeping assessments up to date each year is necessary for fair tax distribution.

Next, keeping values up to date each year does not necessarily mean that your assessment will increase. Market values of properties may stay the same or go down, which means that some properties should see a decrease in assessed values. If your assessment does increase, it doesn’t mean that your taxes will automatically increase. In some cases, a municipality will go from a fractional level of assessment to 100 percent. If the original level of assessment was 10 percent, and the current level of assessment is 100 percent, your assessed value could go from $9,000 to $90,000, and you might not see any increase in taxes.

In addition, if your assessment increases, but the assessments of most other properties increase more, your share of the taxes could decrease. For instance, if your assessment increased by 3 percent, but most other property owners saw increases of 5 percent, you’ll likely see a decrease in taxes (assuming your school and municipal budgets remain stable and the tax levy does not increase).

Q. How does the assessor decide which assessments to change and by how much?

A. In order to maintain a uniform Level of Assessment (LOA), each year your assessor will need to analyze all of the properties in the municipality to determine which assessments need to be changed. If assessments have been kept up to date each year, or if the real estate market has been fairly stable, it is possible that few assessments will need to be adjusted.

Where assessments do need to be changed, in some cases, your assessor will be able to increase or decrease the assessments of a neighborhood or group of properties by applying real estate market trends to those properties. This is possible only when assessments are at a uniform level. In other cases, the assessor will need to conduct physical reinspections for reappraisals of properties. Every assessing unit should be keeping assessments at a fair and uniform level every year.

Q. My assessment was adjusted last year, and it’s been adjusted again this year. Why?

A. Each year, State Law requires your assessor to sign an oath that the assessments in your community represent a uniform percentage of market value. The best way to ensure that assessments are consistently fair and uniform is to keep assessments up to date annually. To encourage compliance with State Law, New York State provides State Aid of $5 per eligible parcel to municipalities that keep assessments at 100 percent of market value each year.

Q. Why does State Aid require 100 percent of market value?

A. It's much easier for taxpayers to understand assessments and determine whether they’re overassessed when assessments are kept at market value. While State law does authorize municipalities to assess at market value or some uniform percentage thereof, the State Aid program requires towns and cities to keep their assessments at market value. Think of it this way, if you estimate your home to be worth $100,000 but the assessed value is $90,000, you might think your property is underassessed. However, if the level of assessment is less than 100 percent of market value, you might be overassessed. If, indeed, your home's market value is $100,000, but your municipality is assessing at 80% of market value, your assessed value should be $80,000. ($100,000 x .80 = $80,000.) In this case, your property is overassessed by $10,000.

Q. If my home is physically reinspected, do I have to let the assessor in?

A. While you are not required to let the assessor or data collector in your home, your cooperation, along with that of all other property owners in your community, helps assure that your assessment will be fair and based on complete and accurate information. Without such cooperation, data collectors are forced to estimate how many bedrooms, bathrooms, etc., there are in your home. Later, if you disagree with the assessment for your property and ask that it be lowered, assessment officials will need precisely the information you refused to provide in order to rule on your request for a lower assessment. If it is really inconvenient to allow an inspection at that time, tell the data collector that and try to make an appointment for some other date. However, if you can spare the ten minutes or so that will usually be required, we urge that you allow it to proceed so that the information necessary for equitable assessment can be gathered.

Property owners are cautioned not to allow anyone into their homes without proper identification, preferably I.D. cards with photographs signed by an authorized town or city official. "No identification, no entry!"

Q. How do I know that the assessor has the correct information about my property?

A. Because the information about your property will be used to determine your assessment, it is in your best interest to make sure that your assessor’s data is correct for your property. You can check with your assessor’s office to receive a listing of the information pertaining to your property.

Q. When will I know my new assessment?

A. Based upon the available information about your property, your assessor will estimate the market value of your property. A notice then will be sent informing you of your new assessment. If you have any questions or disagree with the new assessment, you should arrange for an informal conference at your assessor's office to review the information on which the value is based. If the assessment official(s) feel that a mistake was made (or there is any other reason to question the accuracy of the assessment), the assessment will be amended.

Only when your assessor is convinced that all the property assessments are as accurate as possible will they be placed on the tentative assessment roll.

Q. What information is on the tentative assessment roll?

A. You will not find the physical inventory of your property on the tentative assessment roll, but you will find your assessment, your assessor’s estimate of the market value of your property, and the exemptions you will be receiving. In most communities, tentative rolls are published on May 1, but you should check with your assessor for the details in your community.

Q. What if I disagree with the assessment on the tentative roll?

A. While the roll is tentative, you still have the ability to meet informally with your assessor about your assessment. If at the end of such a conversation, you still feel you are over-assessed based upon the market value of your home, you have the right to file for formal review of your assessment. More information about the assessment review process, including application deadlines and instructions, can be found in "How to File for a Review of Your Assessment – A Guide For Property Owners" or by calling 518-486-5446.

Q. Where can I learn more?

A. Your best source for information about assessment practices in your community is your assessor. The county director of real property tax services is another good source of information. Contact information for local and county officials, as well as additional information about assessments, property taxes and exemptions, is available online.

Q. What are the benefits to keeping assessments up to date each year?

A. More than 250 municipalities across New York are now enjoying the benefits of consistent market value assessments. Aside from State Aid now totaling more than $4.8 million each year, the benefits include:

Assessment Equity for Taxpayers – The longer it has been since a municipality has updated assessments, the more likely it is that some taxpayers are paying more than their fair share in taxes. Up-to-date assessments eliminate unfair assessments and the “sticker shock” that taxpayers experience when assessments are adjusted after years of neglect.
Local Control over the Equalization Rate – By maintaining assessments at market value each year, municipalities can consistently receive an equalization rate of 100. This eliminates shifts in school and county tax apportionment due to fluctuating equalization rates.
Improved Bond Ratings – In addition to State Aid, many municipalities are receiving improved bond ratings as a result of their efforts to keep assessments current. These municipalities are saving tens of thousand of dollars each year (and, in some cases, much more than that).
Fewer Court Challenges to Assessments – By keeping assessments up to date, municipalities are likely to have fewer tax certiorari cases.
Increased State Land Assessments – Because State land assessments are frozen at the year of the last municipal-wide reassessment, annual assessments allow municipalities to make changes in market value that they could not otherwise capture.

New York State’s statute and standards for assessment administration are guided by the standards for assessment administration published by the International Association of Assessing Officers (IAAO) and are supported by the Real Property Tax Administration System Alliance. The following statement is from the IAAO's Standard on Property Tax Policy [Paragraph 4.2.2.] (1997):

Current market value implies annual assessment of all properties. This does not necessarily mean that every property must be appraised each year. In annual assessment, the assessing officer should consciously re-evaluate the factors that affect value, express the interactions of those factors mathematically, and use mass appraisal techniques to estimate property values. Thus, it is necessary to observe and evaluate, but not always to change, the assessment of each property each year to achieve current market value.

A significant aspect of keeping assessments fair and current is the systematic analysis undertaken by assessors. In order for all taxpayers to be treated fairly and in accordance with the law, a systematic review should be undertaken by the assessor each year. Systematic analysis can be accomplished by:

The physical review and appraisal of each property in a municipal-wide reappraisal;
An analysis of all the properties in the municipality, and adjustment of assessments, when necessary, using market trend factors (also known as "trending"); or
Some combination of reappraisal and trending.

As part of the systematic analysis performed each year, the assessor determines which properties are to be reappraised in a given year, which properties can be adjusted by market trends, and which properties require no change because they have remained at the same level of assessment. In addition, the IAAO recommends, and the Annual Aid Program requires, that all parcels are physically inspected and reappraised at least once every six years.

Source: New York State Office of Real Property Services at www.ORPS.state.ny.us