AN ACT CONCERNING A MUNICIPAL OPTION TO DELAY REVALUATIONS.

This bill allows municipalities that, under current law, revalued or must revalue real property in the 2008, 2009, or 2010 assessment year to delay revaluation to the 2011 assessment year (see BACKGROUND). It also allows towns phasing in assessment increases from earlier revaluations and scheduled to implement a phase-in step for the 2008 assessment year to suspend the phase-ins for up to two years until 2011.

Before a town may implement either type of delay, it must be approved by the municipality's legislative body. The existing statutory five-year revaluation or phase-in schedule for any town that adopts a two-year delay must resume after the delay at the point where the delay started.

EFFECTIVE DATE: July 1, 2009 and applicable to assessment years starting on or after October 1, 2008.

The bill requires the assessor or board of assessors in a municipality that delays a revaluation or suspends a phase-in for the 2008 assessment year to prepare a revised grand list for 2008 that reflect the assessments for the 2007 assessment year, subject only to changes in ownership, new construction, and demolitions. The assessor must send to the affected person's last-known address, notice of (1) any increase in the valuation of real estate over its 2007 valuation or (2) for new real estate, of the valuation that will appear on the 2008 grand list. The person can appeal the increase during the next regular session of the board of assessment appeals at which appeals may be heard.

The bill allows the person or entity authorized by law to prepare rate bills in a municipality that has delayed a revaluation or a revaluation phase-in under the bill to prepare new rate bills, notwithstanding any law or municipal charter to the contrary.

The law requires municipalities to tax property based on its fair market value as of October 1 annually. Municipalities begin taxing property based on those values during the fiscal year starting the following July 1. Thus, towns that revalued their property in the 2008 assessment year must implement the revaluation starting July 1, 2009.

SB 388 (File 412), reported favorably by the Planning and Development Committee, allows municipalities to delay revaluation completed on October 1, 2008 or a phase-in of an earlier revaluation for one year, with the approval of their legislative bodies or, in town meeting towns, the board of selectmen. The requirements for implementing the delays are similar to those in this bill.

Yea

Nay

(03/24/2009)