Assessment going up for many city homes
Owners can expect increase in tax bills
Published: December 05, 2009, 12:30 am
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Twice as many city property owners are facing higher assessed values on their homes when compared to a year ago, and it could mean increases in tax bills for thousands of people.
Assessors said the reason for the higher values is that Buffalo didn’t experience the real estate bust that socked many other regions.
Buffalo officials released assessment data Friday indicating that nearly 14,400 homes and 320 businesses are tentatively set to have their assessments increased. By comparison, a year ago 7,065 properties received notices that their assessed values would go up and two years ago, about 9,400 properties saw increases.
This year’s reassessment ritual reviewed 35,000 properties, compared with 24,000 reviews in 2008, said Martin F. Kennedy, assessment and taxation commissioner.
This year’s review determined that fewer than 3,200 properties — or less than 10 percent of those evaluated — lost value. The total value of real estate in Buffalo increased by $273.1 million in the past year, to $10.1 billion, city officials said.
While some view it as upbeat news, others have greeted it with anger as they face higher tax bills next year. Thousands of property owners would see assessment hikes that range from $10,000 to more than $60,000. For every $10,000 increase in a home’s assessed value, city property taxes go up by more than $180. Higher assessments also drive up Erie County tax bills for city residents.
Theodore Portman’s home on St. James Place in the Elmwood Village would see a 27 percent increase in assessed value if he’s unsuccessful in challenging it during a grievance process. When he bought the property in 2001, he said it was assessed at $100,000. His new assessment would be $210,000.
“It’s driving people away,” said Portman of the ever-increasing assessments. “I’m ready to just move.”
North Buffalo resident Joseph Teresi voiced the same sentiments. The assessment on his Starin Avenue home is set to increase by nearly 30 percent.
“This is a way for them to raise taxes without raising tax rates,” said Teresi.
Kennedy bristled at that claim. He insisted that the annual property revaluation has “absolutely nothing to do” with trying to raise more revenue.
“Assessments have everything to do with making sure that all property owners pay a fair share of the tax burden,” Kennedy said.
Among the areas that were reviewed by assessors this year were neighborhoods that make up about one-third of South Buffalo, said Kennedy. He said properties in these areas had not been reassessed in a few years.
Other areas included neighborhoods that have continued to enjoy a robust real estate market, including the Elmwood Village and some upscale parts of North Buffalo. For example, most homes on a stretch of Middlesex Road would see assessment increases. More than 20 homes on the street would see their assessed values increase by more than $50,000. One property would be in line for a $616,000 increase in its assessment, to $1.4 million.
“It’s the real estate sales activity that tells us where to go,” Kennedy said of the assessment process. “If you don’t make these adjustments, then people who haven’t seen dramatic increases in their home values will be paying more taxes than they should.”
In addition to the 14,372 residential properties that are slated for assessment increases, 320 commercial properties also face increases.
Among the largest would be the new Avant Building at Delaware Avenue and West Huron Street. A developer has turned the former Dulski Federal Office Building into a mixed-use project. The assessment has increased to $36.5 million, up from just over $2 million before the rehabilitation.
According to city records, 163 commercial properties would see decreases in their assessed values.
Earlier this year, Mayor Byron W. Brown prodded administration officials to find ways to ensure that the assessment process is equitable. Attention focused on a map used by assessors that divides the city into 120 neighborhoods. Some officials expressed concern that outdated boundaries might cause assessment inequities.
Delaware Council Member Michael J. LoCurto demanded to know Friday about the status of the review. “We heard all this election-year rhetoric about reforming the system,” said Lo- Curto, adding that about 4,000 property owners in his district face higher assessments in the coming year.
What happened to all the talk about making changes to the assessment process? Mayoral spokesman Peter K. Cutler referred the question to Kennedy, who said the process of reviewing “valuation districts” continues.
Buffalo’s current system ensures that all 96,000 parcels are reviewed at least once every six years. However, thousands of properties in high-demand neighborhoods have been reassessed two, three or even four times over six years.
This happens because unlike many other regions, real estate values in some Buffalo neighborhoods have continued to climb, said Kennedy.
Still, the commissioner stressed that residents have the right to fight their assessments. The Board of Assessment Review is expected to begin hearings in January. About 70 percent of the property owners who launched challenges this year received some relief. In most cases, however, the reductions granted were less than what people had requested.
Property owners must submit an assessment challenge form to the city by Dec. 31 in order to schedule a hearing.
bmeyer@buffnews.com
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