City of Amsterdam: True Market Value and Assessed Value
This article in the Mohawk Vallley Compass Brumley clarifies tax terms, city rate may decrease
explains why the City of Amsterdam will see a decrease in their GASD taxes.
As I posted a while ago (The Important Statistic the City of Amsterdam Chooses to Ignore at its Great Peril) , one of the important metrics for city taxpayers and property owners is the city’s assessed value which should correlate to the true market value. While the public record has been corrected on the $41 million drop — it is a drop in market value, mot assessed value– the problem remains: a municipality with declining total market values faces serious fiscal issues as I outlined in my initial post.
What does not quite make sense to me is how the city can suffer a $41 million drop in true market value while seeing the taxable assessed value remain almost the same. For the numbers to work out this way, it suggests that either:
1) Total taxable value assessments have been increased due to readjustment or due to properties coming on the tax rolls which previously were not.
2) The Taxable Assessed Value as cited reflects something with the equalization rate.
As the full suite of numbers by municipality — true market value, total assessed value and taxable assessed value and equalization rate– are not shown directly, I admit to not following how the numbers for the city make sense given the $41 million drop in true market value.
That said, a $41 million drop in the total property assets of the city shows that a significant problem exists that demands the city move to a growth oriented strategy.