$1 billion of property value lost in decade-long rout
Half the town is in for a surprising tax hike in the New Year
Critical moment for staying competitive with neighboring towns
What happens when a town’s revenue base declines for a decade while the government goes on a spending spree?
We’re about to find out.
Home Value Rout
For revenue, New Canaan’s government relies on taxing property. That property is getting reassessed much lower—with a proposed assessment decline of more than $500 million representing a fair market value loss of almost $750 million. On average, more expensive homes have declined the most, with the assessment of homes previously assessed at between $2 million and $5 million declining by 10 percent. At the same tax rate, those property owners will pay for a smaller percentage of government spending as a result of that decline. A majority of New Canaan homes were previously assessed at under $1 million. Their new assessment shows an average 2 percent decline.