Nonprofits Not Place for Political Gamesmanship

MEME PROVIDED BY BOB GORMAN Watertown City Council candidate created this meme in his opposition to ACR Health’s syringe exchange office. In it he also falsely accused City Councilman Steve Jennings of selecting the location.

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Breaking Misconceptions: New executive director focuses on fundraising, educating

AMANDA MORRISON / NNY BUSINESS
Heather Spezzano, Director of the Jefferson County SPCA, watches a kitten play in the kitten room at the facility.

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Excelling in Leadership: Personal and professional growth bonds NNY businesses, communities

AMANDA MORRISON / NNY BUSINESS
Kylie Peck, President & CEO of the Greater Watertown North Country Chamber of Commerce, helps to coordinate the Jefferson Leadership Institute .

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What’s the cost? The Excelsior Scholarship program launch

DAYTONA NILES / NNY BUSINESS
Freshman Natyra Walker sits outside the admissions office on the first day of school at Jefferson Community College.

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Internship Savings: SUNY Potsdam’s Center for Applied Learning generates $550,880

CHRISTOPHER LENNEY / NNY BUSINESS
Toby White, Director of Experiential Education,provides students looking for internships acquire more information and resources.

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Online learning: New certification program accommodates working students

CHRISTIAN K. LEE / NNY BUSINESS
Trisha Howell is seen in a portrait inside a Jefferson Community College classroom on Thursday, Aug. 24 2017 in Watertown, New York.

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Breaking Ground: New facility to increase program capabilities

PHOTO PROVIDED BY: Jason Hunter / SUNY Potsdam
Assemblywoman Addie J. Russell, left center, and SUNY Potsdam President Kristin Esterberg participate toss dirt in the air during a groundbreaking ceremony for SUNY Potsdam’s new Child Care Center.

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September Small Business Startup: Grindstone Fabrications

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Chris Matthews, left, and Jeremy Kellogg own and operate Grindstone Fabrications in Clayton.

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A New President, A New Plan

AMANDA MORRISON / NNY BUSINESS
Ty A. Stone poses in front of the John W. Deans Collaborative Learning Center on Jefferson Community College Campus.

Ty Stone sees Jefferson Community College as integral part of Northern New York development. [Read more…]

What is “Assessed Value?”

Lance Evans

By: Lance Evans

The word “assessment” is defined as “the evaluation or estimation of the nature, quality, or ability of someone or something.”  In real estate, the terms “assessment” and “assessed value” are used frequently and are interchangeable.  

                Frequently people ask why a property is on the market for more than the assessment and if, after the property sells, the assessment will be adjusted to reflect the purchase price.

                I  spoke recently with Brian Phelps, the city of Watertown’s assessor for the past eleven years. We talked about his experience, what an assessor is, and what his or her job is. 

                Assessors are certified by the New York State Department of Taxation and Finance. They need to take a basic certification class and then need to take continuing education periodically.

                Mr. Phelps, who has 20 years of experience as an assessor, began his career as one of three elected assessors in the town of Champion. At one point, prior to being hired by the city, he was employed by three different towns in three different counties. This allowed him to see different systems and ways of doing his job along with a wide variety of properties and economic factors.

                Assessments are, at their core, opinions of value. They differ from an appraisal, which looks at an individual property. The assessor looks at the properties as a whole. His/her estimate of the value of real property is converted into an assessment and is one component in the computation of real property tax bills.

                While properties are treated similarly, assessments allow for differences like square footage, lot size, and features like a pool, porch, deck, etc. They also take into account the general condition and upkeep a property has. Variations like a big upgrade or a decline in maintenance can affect the assessment. An assessor  has access to building permits and he evaluates these based on how they impact the quality and condition of the property.

                His job is to “hit the value” with his assessment. Since he has access to property sales, I asked him what happens when a property sells. Does that automatically mean a change in the assessment? His answer was no.

                Before going further, it is important to note that the city of Watertown assessments reflect 92 percent of a property’s value. This means that if a property is assessed at $92,000 and sells for $100,000, the assessment was right on target. 

                When there is a large variance (higher or lower) in the price versus the assessed value, it could trigger a review of the assessment. Mr. Phelps pointed out that what usually has happened is that what was sold is not what was valued in the assessment. There are times when a buyer pays more than a property would normally be valued.

                For instance, in a “hot” market where properties are selling very fast and have multiple offers, the price paid can easily be much higher than the assessment. Similarly, if an area has suddenly experienced a quick drop in market value, properties can sell well below assessment.

                Either way, the assessor looks at the reasons surrounding the difference between the assessed value and the actual sale price and may adjust it accordingly. Mr. Phelps looks at the property as it was valued and what actually sold.

                Outside of a city-wide revaluation, the main way an assessment changes is a physical change to the property like an addition, something that markedly improves the value, or something that causes a dramatic drop in value. 

                Earlier, I noted that the assessment is only one component of how the real property tax bill is calculated. The other portion is the tax levy that the municipality, county Legislature, and local school district set as the amount that needs to be collected. The levy is the amount of money needed to fund government operations after accounting for state aid, sales tax and other income sources.

                According to Mr. Phelps, the total value of property in Watertown is roughly one billion dollars. If the City Council determines that the amount needed from property tax is ten million dollars, then the City’s portion of the property tax will be $10 per thousand dollars of assessed valuation. In the earlier example of a property assessed at $92,000, then the bill would be $92.

                Next month, I will be looking at how appraisals work and how they differ from assessments and how they can help determine the market price for a property.