Following confusion from readers concerning the tax implications of the recent real estate revaluation, a review of how revaluation works, and what some of the numbers presented in the previous article mean, is in order.

Many Newtown homeowners may have found the tax assessments on their homes have gone up a large amount — the average residential assessment increased 43 percent. Commercial, Industrial, and Public Utility assessments increased 9.1 percent across the three categories, and apartments increased 78.6 percent. The combined increase across all real estate categories is 39 percent.

This comes a year after residents saw a large increase in vehicle taxes.

However, with home values increasing so much, and the subsequent increase in the value of the town’s Grand List, which is the total values of taxable property across the entire town, the estimated mill rate will go down to compensate. With the mill rate going down, this will mean a decrease in taxes paid on vehicles, as vehicles are paid off the same mill rate as real estate.

A mill equates to one dollar in taxation for every $1,000 in taxable property.

While nothing is set in stone, Finance Director Bob Tait is estimating that the mill rate will decrease from the current 34.67 mill rate to 25.86 mills.

NOTE: this new mill rate is only an estimate, based on the budget staying flat from this year.

So if the Legislative Council this spring approves a 0 percent spending increase and barring no other changes, 25.86 mills would be the mill rate for the 2023-24 fiscal year. However, the town is beginning its review of the budget, with officials formulating their budget requests to go to the First Selectman now, and then most go to the Board of Selectmen, the Board of Finance, the Legislative Council, and finally, the voters in April, before the actual new mill rate will be known.

This means that 25.86 is the base line from which any budget increases will be calculated, rather than the old 34.67.

Using the estimated mill rate, Tait noted that an average residential home that paid $8,570.42 in taxes in 2022-23, as well as with two vehicles where they paid $811.50 on one and $486.90 on the other, would this year pay $9,003.93 on their home, a $433.51 or 5.1 percent increase; $646.50 on the first car, a $165 or 20.3 percent decrease; and $387.90 on the second car, a $99 or 20.3 percent decrease, for an overall difference of $169.51 in total taxes, a 1.7 percent increase.

Individual taxpayers may see larger or smaller increases, depending upon their individual situations, Tait said.

Tait presented how to calculate an estimated tax bill: For real estate, divide the amount in your revaluation notice and divide by 1,000, then times by 25.86. For motor vehicle taxes, take the prior tax amount and times it by .75 (ie, it should be 20 percent less than the prior year).

The new assessments are an update based on sales of property in the area, and not based on full inspections of each home. The town’s next full revaluation with full inspections of each residence is in 2026.

The town is required by state statute to do a revaluation every five years, switching between a statistical revaluation (where appraisals are calculated based on recent sales, but homes are not individually inspected), and a full revaluation (which includes individual inspections of properties across town).

To view the latest data on your property, go to vgsi.com to access your latest property information.

While the informal hearing process for those who disagree with their assessments ended on December 14, for those who wish to appeal the assessments after the informal hearing process is complete, they must file a written appeal to the Newtown Board of Assessment Appeals on the prescribed appeal application, which can be found on the Town of Newtown website at: newtown-ct.gov/board-assessment-appeals.

Those wishing to appeal may also obtain the prescribed appeal application at the Assessor’s Office since the informal hearing process is complete. Appeals cannot be accepted until the 2022 Grand List has been filed, usually around January 31.

Appeals applications must be received in the Assessor’s Office by 4:30 pm on February 20.

Associate Editor Jim Taylor can be reached at jim@thebee.com.