The tax calculation is a complex formula; it is best described as a 3-legged stool. There is the Levy, The Assessments, and the Equalization Rate as determined by NYS. When towns do not have a recent assessment, they have a lower equalization rate, which impacts their taxes. For example, last year Farmington's equalization rate was 88%, which means NYS determined that Farmington was assessed at 88% of what they should have been assessed. As part of the tax calculation, the tax rate was adjusted for Farmington to account for this discrepancy, so properties in Farmington were taxed approximately 12% (the difference between 100% and 88%) higher than if they were at 100%. For example, last year a $300,000 assessment in Farmington was taxed as if it were assessed at $340,909.
Due to the reassessment in Farmington this year, the Farmington's equalization rate is 100%, which means if your assessment is $300,000, you will be taxed as if your assessment is $300,000.
Had Farmington not done a reassessment, NYS would have adjusted the equalization rate lower than the 88%, which would have increased individual tax rate. An example would be a 70% equalization rate impacting someone owning a $300,000 home by taxing the home 30% (difference between 100% and 70%) higher, which means this house is taxed as if it were assessed at $428,571.
So, depending on the equalization rate, people's taxes could be lower than a 1.2% increase if their assessment went up less than the average assessment. Conversely, a homeowner's taxes could increase more than the 1.2% if their assessment increased at a higher percentage than other people's assessment.
In addition, the District's tax levy does not increase because assessments increase. Because of the reassessment in Farmington and the increase in the number of homes/businesses built in Farmington, the individual tax rates should decrease, which will impact a homeowner's actual tax payment.
