Grand list sees decline in 2008
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Monday, March 2, 2009 - 9:27am
Late in January the Board of Selectmen took its first look at the town’s budget proposal, and began their meeting with a report from Assessor Gary Johns, who reported a decline in the 2008 grand list – a list of taxable property in town.
At that time, Johns projected a $12 million decrease in the amount of taxable property in town from last year. However, the list has since been finalized, and the results are slightly more favorable. The actual decrease in the grand list over last year is $8.9 million, a .3 percent overall decrease.
The grand list is made up of three sections: real estate, which includes both residential and commercial; personal property, like business equipment; and motor vehicles, both personal and commercial. Johns said that this year the grand list reflects an increase in real estate by more than $10 million, a decrease in personal property by about $7 million, and a drop in motor vehicles by about $12 million.
The real estate increase is mainly due to the large North Haven Commons retail development on Universal Drive, though there has been a slight increase in residential housing in 2008.
Personal property decreases can be attributed to exemptions. The town cannot tax on personal property that comes under an exemption, and Johns said those exemptions are up by $7.8 million this year. That is largely due to two state programs that dictate that new equipment up to five years old is totally exempt, and that equipment over five years old is partially exempt. Under that second program, Johns said the town has seen an increase in the percentage of exemption rising in 20 percent increments. This year, equipment over five years old is 60 percent exempt. Though the state does reimburse the towns for this program, the funding is determined by the state legislature, and it is never 100 percent, Johns said.
“As the economic climate becomes more and more difficult, businesses will be looking for more exemptions,” he said.
In a trend common throughout the state, there has been a decrease in total motor vehicle registrations. Considering the economy, people and businesses are not as quick to purchase additional vehicles. Couple that with annual depreciation of the vehicles, and the decrease in this area is clear.
What does it all mean?
The grand list acts as one form of revenue for the town. The decrease in the grand list, at the town’s current mill rate of 23.5, mean’s that the town will have about $211,000 less in revenue than it did last year. Johns noted that it is hard to say what this could mean to the town because it is just one piece of a larger puzzle. The town’s ultimate budget number, along with other sources of revenue will also determine the overall impact.
Johns also said that this is the certified grand list at its first filing. Because residents have the opportunity to appeal their house assessments in March, the numbers will likely change.
Revised numbers are due to the state in May, Johns said.
Looking ahead
Johns said the grand list has several “soft” areas that in the coming years could have a significant impact on the town’s grand list. The Quinnipiac University/Anthem property is one of them. Quinnipiac is currently taxed for 75 percent of the property due to Anthem’s continued presence on part of the property. In the coming years, as Anthem moves off the property, and Quinnipiac is the sole inhabitant, the property will become totally exempt because it is an educational facility. Quinnipiac/Anthem is currently the second highest taxpayer in North Haven.
Another factor that will arise in the future – Quebecor – which has gone out of business. It still remains on the town’s tax rolls, however, because the company’s equipment is still on site. When that equipment is gone, so too will be the town’s opportunity to tax it. Quebecor is currently the fourth highest taxpayer in town.
