Burrillville Assessing Department

How Real Estate Is Assessed

PROPERTY TAX ON REAL ESTATE

The major source of revenue for the 39 cities and towns in Rhode Island is the property tax. In Burrillville, a major portion of the revenue needed to run the government and schools is derived from the property tax.

The property tax is an "ad-valorem" (based on value) tax. The tax is apportioned to individual properties based on the value of the property. In Rhode Island, estimates of value are known as assessments. The assessed value (or assessment) is the value of property to be used for local taxation. The assessment of a large number of parcels for property tax purposes constitutes a highly specialized field of appraisal. It is termed mass appraisal, and requires significant statistical analysis in order to develop accurate values.

In Rhode Island, the property tax is assessed to the person who is the owner of record on December 31st. Any ownership subsequent to that date may not be reflected on the tax bill. The Assessing department does make every effort to send the bill “care of” the subsequent owners and that is the reason both names may appear on the bill. If you are a new owner you should start looking for your bill in July and if you do not receive one you should call the assessing department or the tax collector.

In Rhode Island, the legal status and physical condition of real property on December 31st is the determining factor when establishing value for the fiscal year. It is, therefore, important that any new construction be inspected as close to that date as possible in order to determine the level of completion as of the assessment date.

ASSESSORS

Assessors are required by Rhode Island law to value all taxable property within their community. They value every property, from single-family residences to the largest of commercial and industrial enterprises. They may perform this work with their own staff or they may hire a professional appraisal firm. Increasingly, Assessors use computer software as a tool to maintain values and assist with the multitude of calculations required in their work. The assessing department must discover and list all taxable property, maintaining accurate ownership and property information. As such, records indicating changes in ownership, deed transfers, and property improvements are sought from a variety of sources including Land Evidence and the Town's Building Department.

Assessed values in Rhode Island are by statute based on “full and fair market value, or a uniform percentage thereof.” Assessors are required to update property values at least every three years. In the years between updates, Assessors must also maintain the values. For example, they annually review building permits and zoning board decisions for changes that may affect the value of individual properties.

Assessors do not raise or lower taxes. They do not make the laws which affect property owners. The Assessing Department has no involvement with the collection process. The Assessor’s responsibility is to identify and determine the market value of taxable property, so that it can be assessed and committed to the Collector for billing.

REVALUATION

Rhode Island is now on a three year revaluation schedule. The law requires for “full” revaluation every 9 years with updates every three years. Burrillville was last revalued in fiscal year 2004. The project was a full revaluation. The only difference between a full revaluation and an update is that a full revaluation includes a complete re-collection of property data. Therefore it is a much more visible project. Studies throughout the United States have demonstrated that fair and accurate values can only be achieved by re-collection of property data and revaluation on a regular schedule.

The Assessing department developed revaluation specifications with rigorous performance standards and worked closely with the revaluation contractor. In order for the new values to be approved by the assessing department, a multitude of standards had to be met by the contractor. For example, it is not permissible to assess one class of property at 100 percent of market value and another class at only 90 percent. We hired a consultant to review key segments of the project to ensure that the standards were met and applied uniformly. The consultant is a certified appraiser, and has several years of full time experience reviewing revaluation projects performed by municipalities and revaluation contractors.

Will all property values change in a revaluation year? Most likely, yes. However, not all property values will change at the same rate. Market value will have increased more for some neighborhoods and property types than for others. Some neighborhoods and property types may have increased in value at a slower rate or remained relatively stable. A primary reason for revaluation is to ensure that the assessed values reflect the changes that have occurred in property values. The rationale for full value assessments is so that it can be more easily determined if property is being assessed fairly and uniformly. More information on revaluation can be found here.