What kind of property is assessed?
◊ All real property, commonly known as real estate, is assessed.
◊ Real property is defined as land and any permanent structures attached to it.
◊ Some examples of real property are: Houses, gas stations, office buildings, vacant land, motels, shopping centers, saleable natural resources (oil, gas, timber), farms, apartment buildings, factories, restaurants, and, in most instances, mobile homes.
What is a Property Assessment Complaint and How do I File?
◊ It is up to individual property owners to monitor their own assessments. Taxpayers who feel they are not being fairly assessed should meet with their assessor before the tentative assessment roll is established. In the Village of Bronxville the Tentative Assessment Roll is published on February 1st of each year. If you feel that your property is assessed too high you may file a complaint and ask for a review on your assessment.
How is Real Property Assessed?
◊ Before assessing any parcel of property, the Assessor estimates its Fair Market Value. Fair Market Value, in most cases, is the equivalent of the price paid for a given property. It must be advertised to all possible buyers, for a typical exposure period, the price paid is tantamount to cash, and the parties are unrelated in any manner.
◊ To estimate real estate values, the Assessor, as a function of law, is considered an expert with all aspects driving value in the real estate market.
◊ A property’s value is estimated by the Assessor after considering the applicability of three recognized approaches (Market Comparison, Cost Approach, and IncomeCapitalization Approach).
▫ First, (the Market Comparison Approach), property is compared to other similar recently sold and similarly situated property. This method is normally used to value homes, vacant land and farm property.
▫ The second (the Cost Approach) is to calculate the cost to replace the structure, using current labor and material prices and, if necessary, allowing for various forms of physical and economic depreciation. This method, while considered in the valuation of residential property, is most often used to value special purpose, utility property and unique residential homes.
▫ The third (Income Capitalization), the Assessor analyzes the income generated through the rental of the structure (not the operation within the structure) and the expenses associated with the operation of the structure. The net profit is then capitalized by applying the appropriate competing rate of return of similar investment tools (Cap Rate).
◊ Once the Assessor estimates the market value of a property, its assessment is calculated. New York State law provides that all property within a municipality be assessed at a uniform percent of market value. The level of assessment can be 5 percent, 20 percent, 50 percent, or any other fraction, up to 100 percent.
◊ Everyone pays his or her fair share of taxes as long as every property in a locality is assessed at the same percent of value.
◊ The Village of Bronxville* completed a full village-wide revaluation in the year 2007. The Village has maintained all of its property values at 100% of Fair Market Value each subsequent year.
* The Village is unique New York State-wide in that we are responsible to assess property value for both village taxes and school taxes (roughly 80% of all property taxes). The Town of Eastchester is responsible to assess property for the remainder of taxes, consisting of town, county, fire and special district taxes (roughtly 20% of all property taxes).
◊ Click HERE to link to the New York State for How Property Taxes Work.