Assessor Michael Blay reported that
- The Sales Analysis was completed, submitted to Department of Revenue and approved.
- Valuations established for categories of properties – e.g. private, business, and utilities
- New growth estimated at $11,000,000 which would (hypothetically) result in $81,000 is new tax income
- What follows that work is establishing the tax rate
- The Tax Classification Meeting (TCM) date was suggested as October 29th The TCM is a meeting open to public with time for comments. By law, all tax classifications are discussed and voted on including small commercial, private property, and all exemptions.
- In the Overlay account there is $200,000 and the BOA must determine if more is needed.
Editor’s note: the Overlay Account is a key component of municipal finance that is designed to fund abatements and exemptions of committed real and personal property taxes for any fiscal year. Abatements arise due to requests to lower property tax assessments, while exemptions are tax reductions for certain eligible individuals, such as veterans or seniors. The overlay funding amount is determined by the board of assessors and may be raised in the tax rate without appropriation. Understanding how the overlay works can help local governments maintain fiscal responsibility and accountability.
As part of the annual budget process, the assessors should be analyzing the overlay’s fund balance to determine whether it is adequate—this can be calculated by taking into consideration account balance, the average of abatements and exemptions granted in the previous five fiscal years and any liability associated with cases pending before the Appellate Tax Board (ATB). If the account balance is not adequate, the assessors can raise additional funds required through the tax rate setting process without appropriation. The entire finance team should be part of this process, as it has direct impact on the ensuing fiscal year’s budget.
