The Town of New Canaan has completed our latest property revaluations. New assessments have been mailed out to property owners. Mandated every 10 years, this most recent revaluation saw an estimated 25% surge in the total value of properties in New Canaan, known as the Grand List, from $8 billion to $10 billion. This level of increase is unprecedented.
Property taxes are calculated through the use of a mill rate. As many of you are aware, the mill rate is applied to each $1,000 of the assessed value of the property. To avoid being over-valued in a down market, the assessed value represents 70% of the presumed market value of the property. The current mill rate is 18.94. For example, the property taxes on an assessed value of $1.5M today would be 18.94 times 1,500 or $28,410. You can multiply this current mill rate times your current assessed value to confirm your current property taxes.
With the Grand list going up, the corresponding mill rate will decline. The new mill rate will be set by the Board of Finance in May 2024. All things equal, the mill rate will decline approximately the same percentage amount as the Grand list value increased. Don’t multiply your new assessed value times the current mill rate! That will overstate your projected property taxes.
Using the example above, if the new assessed value increased from $1.5M to $2M, up 33%, and the mill rate declines to 14.50 (an example only), the new property tax will be 14.50 times 2,000 or $29,000; a 2% increase from the current $28,410. The expected lower mill rate next year should have a positive impact on automobile taxes. Assessment questions should be directed to Sebastian Calderella (Town Assessor). His email is firstname.lastname@example.org.
As always, the Board of Finance, working with the Board of Selectman, the Town Council, and all of the town departments, will work hard to keep our expenses in check while delivering the excellent schools and services we all would like. The new mill rate with the new assessments will take effect July 1st 2024.
Chairman, Board of Finance