A recent story in the Providence Journal noted that the city’s property values plummeted with the latest revaluation, which raises this interesting question:
What the revaluation means for city finances, the tax rate and residential tax bills remains unclear. A potential 30-percent drop in the city’s $21.7 billion in total assessed property value (as of 2008) could mean a significant loss of revenue. …
Cicilline has pledged not to raise the property-tax levy — the total amount the city raises in property taxes — over this year’s $274 million. But he has not ruled out an increase in the tax rate, which is already one of the highest in the state, at $24.21 per $1,000 of assessed value for residential properties and $28.60 for commercial properties.
Owners of property in Tiverton needn’t worry about such ambiguity. It’s thoroughly accepted, in our local government, that the tax rate is little more than a midway calculation between the levy and the homeowner’s bill. The financial town meeting (FTM) sets the levy, and the town divides it up across all real estate owned, and your percentage of that real estate determines your percentage of the levy. No matter how worthless your house may become — as long as it doesn’t differ from the overall trends for the town — you’ll still receive the same tax bill.
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