OK, this is NOT an exciting subject, but one that we are asked about quite a bit. Both buyers and sellers ask us about property taxes and how the Town of Newtown determines the amount due for each property.
Basically, the tax amount for a property is determined by multiplying the Assessed Value by the Mill Rate - but what does that mean?
- Assessed Value: Every 10 years, the Town of Newtown performs a re-evaluation of property values in town. The town hires an outside appraisal company who actually goes to every property in town. This company gives a current market value to the property. 70% of this value becomes the Assessed Value for the property.
- Mill Rate: The Mill Rate, is the dollar amount charged per thousand dollars of assessed value. The Mill Rate for the 2008/2009 is $23.20. The projected Mill Rate for the 2009/2010 tax year is $23.43.
So, to determine your property tax amount, multiply the Assessed Value of your property by the current Mill Rate and that is your property tax amount. Here's an example:
|2008/2009 Mill Rate||.02320|
|Property Tax Amount||$9,857.61|
Every year, the residents of Newtown vote on the Town Budget. The Town Budget sets aside funds to pay for the different Town programs, departments, etc and the new mill rate is put into effect once the new Town Budget is passed by the town residents. One of the ways the Town Budget is funded is through property taxes. In advance of voting on the Town Budget, it is printed in the Newtown Bee and the projected mill rate is also printed.
If you have any questions about this blog post, please feel free to either email us or call us at the number below.
Bob & Richelle Ward, Realtors, ABR
Prudential Connecticut Realty
Cell - (203) 470-9818