I recently read two letters sent to Readsboro officials from the Vermont Department of Taxes, Property Valuation and Review (PVR). The first, dated December 17, 2009, was sent to the listers. The letter identified a statistical evaluation of the recent reappraissal and cited two inequities. First, the differential treatment of unsold versus sold properties where the new listed value of unsold properties increased on average by nearly 12% more than the values of sold properties. Second, the differential treatment of homestead and non residential properties where homestead properties appear to be at a level of appraisal about 27% higher than nonresidential properties. PVR director William Johnson goes on and comments about the type of transactions submitted and used in the calculations and makes a final comment that “the issue of whether the equalization study samples contain a large number of questionable sales is disturbing. If you continue to believe that is true, I would urge the Town to appeal the forthcoming results of this year’s equalization results.”
The second letter, dated December 18, 2009, from PVR director William Johnson to the Readsboro Town Clerk, is an annual letter defining the equalized education property value and the calculated coefficient of dispersion (COD). The 2010 CLA drops to 121.42% and the COD after the recent reappraisal is 38.82%.
Taken directly from the letter “The coefficient of dispersion (COD) is a measure of uniformity of appraisal for all properties in the grand list. It measures the average deviation from market value of sold properties from the average townwide level of appraisal. A COD of 0.00% is perfect as it indicates absolute fairness insofar as every taxpayer is appraised at exactly the same percentage of fair market value. Such perfection is impossible to achieve and CODs close to zero usually indicate sales chasing. A COD of 10% or lower is considered to reflect a relatively high level of equity across taxpayers’ assessments.”
A town will be red-flagged and the state will request a reappraisal when its COD is above 20% and, after the recent revaluation, we are at 38.82%. Are we red-flagged again? Basically, the state department of property valuation and review has notified the town that, by definition, the new appraisal does not reflect a high level of equity across taxpayers’ assessments!
I was able to read, and share with the appellant’s permission, the findings of the state appraiser concerning the decision on his appeal.
It stated under decisions:
“The board of civil authority report made no mention of any reasons for the board’s determination of value. The wording is vague and is a disservice to the residents of the community who are looking to the Board for fair and factual reasons for their property value.”
The state appraiser then proceeds to say, “I find the current sales are a more reliable measure of property values than the replacement cost method used by the town and the appellants are justified in testifying their properties based on sales as a measure of fair market value is overassessed”
To me, it is clear that the state assessor has legitimate concerns with both the actions of the board of civil authority and the firm that did the revaluation.
The BCA - what can one say? Collectively, that board had no clue as to what their roles and responsibilities were in regard to hearing reappraisal grievances. What do they know about standards for evaluating parcels and homes? To me this is proven in the appraiser’s report that the BCA “did a disservice to the residents of the community.”
The cost so far of this revaluation is rapidly approaching $100,000.
The Readsboro Selectboard was “cc’d” on the letters from the department of taxes, property value and review, and the residents of Readsboro should be interested in the board’s involvement and subsequent action, if any.
Larry Hopkins
Readsboro
Comparing the appraised value with the selling price is the only means of determining accuracy.
That is called and assessment to sales ratio indicating the percentage above or below the fair market value of real estate.
In the 2006 annual report to the legislature the property valuation Division provides shows statewide data of the assessment to sales ratios with a range of around 12% of fair market value to around 180%. You are supposed to be appraised at 100% fair market value. The 2006 report is sent to each town.
The reason why listers have problems appraising and the division is sending huge sums for training listers and professional appraisers is because the original property tax of 1797 required people to submit a list of their polls, real estate including the home or shop where you lived, personal property and gains from selling that in total was your property wealth; todays property tax is nothing like that it taxes only real estate, homes, camps, mobil homes, industrial property, farms etc.
the 1797 tax was a single tax that applied across the entire state as each member of society contributing their proportion according to wealth. Obviously if everyone is taxed across the entire state according to wealth only one tax is necessary and the acts and laws of 1797 complied with the Constitution of Vermont Article 9, that had just been revised in 1793
Point is that the government of this state over a perid of time have violated their legislative powers by introducing other taxes and fees that are not agreeable with chaptert 1 article 9 including the personal and corporate income taxes,and the wide array of sales taxes even running a lottery and charging fees for drivers licences and hunting and fishing licences are illegal acts by the government. Legislatures have added taxes that do not conform to Chapter 1 Article 9, and their powers say they cannot "add to, alter, abolish or infringe on any part of this Constitution"
So government is running a fraud, have violated their oaths of office, perjury, taken money from us for illegal programs and services, and used the republican and democrat majority as nothing more that a racketeering operation making their own personal policy wihtout consideration of the limts of their legislative powers.
Why have the 1797 acts and laws been phased out?
The property tax also found it necessary to include entries onto lists of all debt that had been contracted, debt was subtracted from the inventory of wealth.
Our modern society approaches living in perpetual debt with mortgages, car loans, education costs, credit cards, etc. all to be subtracted from wages that cannot pay off this debt.
Proportional taxation according to wealth would rightly fall on the Warren Buffets of the world while the workforce held in peonage would pay next to nothing.
The 1787 home was put into the list at 2% when valued below $1000 and 3% when valued above deemphasizing the home as a major contributor of wealth and the effect of also being listed along with personal property and gains from selling also all but eliminated appraisal error.
The Income tax is restricted to use by Congress
read the 16th amendment, congress shall have power to lay and collect taxes.
Besides we already have direction in our Cosntitution on how we are to be taxes chapter 1 article 9!
Sales taxes are illegal in vermont because article 9 requires proportional taxation according to property wealth. A wealth person and poor person buying the same object pay the same amount--no porportional taxation.
Thanks for letting me vent but remember we are being scamed by our own government here in Vermont.
The republican and democratic political system forever with majority power RULES us from president and congress to governors and legislators as an autocrat unchecked by constiutional restrictions or limitations pushing their own personal policy.
The reason why listers and others cannot accurate perform thier duty
thank you,
Debi Kelly