Understanding Burlington’s Citywide Reappraisal: What it means for you and your business

Burlington sees 52% increase in total commercial appraisal values

 

*This page will be updated as more data becomes available and we releases further analysis on the impacts of the reappraisal to businesses.

On April 8th the City of Burlington published property reappraisal data to conclude the two year long citywide reevaluation with consultant Tyler Technologies. The city’s stated goal of reappraisal is to value all properties at 100% of their current fair market value This is the first city-wide reappraisal since 2005 and some parcels will see a significant increase in appraised value. 



# of ParcelsBeforeAfterChange
Grand List Total10399$3,735,263,626$5,927,947,364 58.70%
Commercial Only Total 585$691,543,651$1,050,521,33451.91%

The City’s Charter mandates that reappraisal will be revenue neutral, meaning some property owners will owe more and some will owe less. This is achieved through a decrease in the municipal rate. The tax rate for FY22 has not yet been determined. 

Reappraisal Links

*4/26/21 UPDATE: Reappraisal FAQs and Impact Tool:

The city has published a Reappraisal FAQs page and an Impact Tool that will help property owners estimate the impact on your tax bill. The city estimates the new municipal rate will be 0.6383. In June the final tax rates will be set by the state (education tax) and city (municipal tax) for FY22.

Read more about the Reappraisal here:  https://www.burlingtonvt.gov/assessor/reappraisal

Look up your property value here:  https://property.burlingtonvt.gov/

View the Grand List of all parcels for FY22 here:  https://www.burlingtonvt.gov/Assessor/Grand-List

 

Property Valuation Appeal

Property owners may appeal the new valuation but only have until April 30, 2021 by 4:00 PM to do so. You can file an appeal or find more information about the appeal process here:

https://www.burlingtonvt.gov/Assessor/Property-Appeal-Procedures

  • Start an Appeal Online Here
  • After submitting your information, you must call Tyler Technologies at 1-877-895-9675 to schedule a Board of Assessor (BOA) property valuation hearing date and time. Hearings will be held virtually via Zoom. The hearings take about 10 minutes; please be prepared to highlight the reasons for your appeal, such as a recent appraisal, and be prepared to provide helpful information relating to the valuation of your property. 
  • You may experience hold times of ~10 minutes. If your hold time is significantly beyond that or you are unable to schedule your hearing please let us know: [email protected]

 

Impact on DID Fees

*On 4/21/21 the Church Street Marketplace Commission voted to set the rate of the DID at $.01 for FY22. Next, the City Council will vote to approve this rate. 

The reappraisal will have an impact on DID Fees for non-residential properties within the Downtown Improvement District. The DID fee is calculated off of appraised value. It appears as a separate line item on your tax bill or is passed on to you as a tenant via triple net. With appraised values mostly increasing the DID rate would need to be decreased to be level-funded with last year. A vote on this will take place at the Church Street Marketplace Commission on April 21. 

A BBA analysis estimated that the average DID paying parcel’s appraised value went up 53%. Even if the commission were to vote to level fund the DID it is important to note that most businesses would still pay more in DID fees because there are expected to be fewer fee paying parcels. in FY22 and a few very large fee payers saw decreases in their reappraisal. 

The BBA will be reaching out to DID fee payers and impacted businesses in the coming days to ensure you are aware of the opportunity to weigh in on the question of whether or not the tax delivers value and at what level it should be funded this year. 

 

DID Quick Facts:

  • Only downtown & waterfront area businesses pay this tax – DID MAP
  • It is written in the City Charter that it must be used for a 2 hr Free parking Program.
    • This year 2hr Free Parking ended in one downtown garage
  • It is capped at $0.12 and calculated based on your properties assessed value (appraisal + 20%)
    • The BBA successfully advocated to have this rate reduced by 50% in 2020 in response to the pandemic.
  • The tax, once collected, is sent to the Department of Public Works Parking & Traffic Department.
  • For the past 5 years the BBA has worked in collaboration with DPW to deliver special programs and services with a portion of these funds. That program ends on June 30, 2020. You can learn more about this partnership at parkburlington.com.

Impact on Business Personal Property (Asset) Tax

Because the BPP Tax is taxed at the municipal rate, it is expected the municipal rate decrease will lead to savings for BPP taxpayers. A 2018 study by the city found that this will result in an estimated savings of $172 per $100k assets or $268,000 total to taxpayers. 

In 2019 the BBA successfully advocated for a charter change that created a true exemption for businesses with less than $45k in assets and a mandated phase-out of the tax by 2026. 

More info on the BPPT can be found at the links below:

BBA Fact Sheet: Asset Tax

https://www.burlingtonvt.gov/Assessor/Business-Personal-Property-Tax

Have questions about DID fees or Business Personal Property Tax? Drop us a line: [email protected]