Borough’s grand list drops following revaluation

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NaugyTownHall2NAUGATUCK — The impact of the recent revaluation in Naugatuck has been felt in the borough’s 2012 grand list.

The borough’s grand list for Oct. 1, 2012 was $1,566,236,889, a decrease of $468,752,727 or approximately 23 percent from the 2011 grand list.

A town’s grand list is a tabulation of the value of assessed real estate, personal property and motor vehicles.

Mayor Robert Mezzo explained on his blog this is the first grand list after the revaluation, which saw real estate values drop by approximately 26 percent.

“The largest factor in this decrease is the impact that the recession had on property values relative to real property,” Mezzo wrote.

The grand list reflected that change, as the value of real estate dropped 26.36 percent from the 2011 grand list.

The total value of motor vehicles was $171,496,829 a 2.4 percent decrease from the 2011 grand list.

The total vehicle value could have dropped in part because about 200 fewer cars were registered in the borough, Tax Assessor George Hlavacek said.

The only portion of the grand list that saw any increase was personal property, which rose 9.6 percent over the 2011 grand list to $109,859,710.

“What that means is companies are starting to invest again in machinery. Companies are starting to invest again in equipment. We’re seeing that growth in a section that often gets ignored, but is vital. It creates new jobs,” Mezzo said during the Naugatuck Chamber of Commerce’s Mayoral Luncheon last Friday.

Businesses in the borough invested in more taxable property last year with the money they kept from the state Manufacturing Machinery and Equipment exemption, Hlavacek added.

“They’ve seen increases in revenues and they turn around and purchase other equipment, such as furniture, fixtures, computers, phone systems,” Hlavacek said.

Due to the decrease in the grand list, the borough’s mill rate will have to be adjusted. Using the current mill rate of 33.55, the decrease in the grand list represents a lose of $15.7 million in tax revenue.

“The impact of the reduction in the grand list relative to the mill rate and taxes will not be known until the borough’s 2013-14 budget is finalized,” Mezzo wrote. “While most real property values have been reduced, the mill rate will increase to compensate for the loss in local revenue. How that impacts local taxpayers will depend on the actual mill rate adopted, the new value of their real property, and the value of motor vehicles and/or personal property owned.”

The borough board will vote on a tax rate in May, after working with the Board of Finance to craft a budget for the fiscal year that begins in July.

Residents paying a higher rate on property that is worth much less could break even, but taxes on things that did not drop as precipitously, such as cars and commercial properties, could go up, according to an analysis that revaluation company Tyler Technologies presented in December to the borough board.

Tyler Technologies adjusted some property values after informal hearings, but residents can still contest their new assessments, Hlavacek said. Applications are available on the borough’s website, www.naugatuck-ct.gov, and in the assessor’s office in Town Hall, 229 Church St. They must be submitted by March 20.

The Republican American contributed to this article.

Top ten taxpayers

Connecticut Water Company, $15,670,950

Connecticut Light and Power, $14,710,650

Yankee Gas, $13,196,830

Garden Homes of Naugatuck\Horizon Homes, $9,215,220

Wal-mart Real Estate\Wal-mart Stores East, $8,599,780

Mancinone, John & Mancinone, John Trust, $7,989,310

Bridge Shopping Center, $7,393,470

Ansonia Acquisitions 1 LLC\Parkview Apartments, $6,563,620

Southwood gardens LLC, $5,365,990

Genesis Health Ventures, $4,692,040

The figures represent the total assessment for real estate and personal property. List provided by the Naugatuck Assessor’s Office.