East Windsor cuts homeowner assessments 15%. Enfield is next in line for the question.

A new state law allows towns to cut assessments for owner-occupied homes from 5% to 35%. East Windsor just approved a 15% reduction.  A decrease in homeowner assessments may cut tax burdens on owner-occupied properties but raise them on commercial properties. East Windsor is the second town to approve this assessment reduction, now allowed under state law. Photo: Former Macy's building. 

East Windsor is lowering assessed value on owner-occupied homes by 15%. It is the second town in the state to take advantage of a new state law that allows local communities to lower assessments anywhere from 5% to 35% on an owner-occupied primary residence — single and two-family homes, as well as condos. New Milford went first, and set a 10% assessment reduction.

If East Windsor's 15% reduction were adopted by Enfield, it might work like this: A home with a market value of $300,000 has an assessed value of $210,000. A 15% reduction would lower the assessment on this home to $178,500.

The tax bill on a $210,000 assessment is approximately $6,953 at the present tax rate of 33.11. The new tax bill — based on the current mill rate — will be $5,910. That's a potential gross savings of $1,043. But the savings will be less.

Commercial properties, apartments, three-family houses, rental homes and second homes will pay more to offset the decline in taxes paid by owner-occupied homes that qualify for the assessment reductions. In short: Owner-occupied homeowners will pay taxes on 85% of their assessments, but apartment and commercial properties will pay taxes on 100% of their assessment. 

Even with revaluation, if the town removes 15% of qualifying owner-occupied residential assessments from the taxable grand list, it must set a higher mill rate than it otherwise would have needed to raise the same amount of revenue.

The Enfield Town Council hasn't debated this issue, but it will likely face pressure to consider the idea, especially after residents get their new assessment notices this fall. It's not hard to imagine how this could become a major political fight in Enfield.

In a Facebook post, East Windsor First Selectman Jason Bowsza explained the town's decision this way:

"This program represents a deliberate shift in the distribution of East Windsor's property tax burden. By reducing the taxable value of qualifying owner-occupied homes, a greater share of the Town's tax burden will be carried by the remaining taxable property base, including commercial property," Bowsza wrote.

Bowsza said he believes the program strikes an "important balance" by reducing taxes on qualifying owner-occupied homes, and shifting more of the tax burden to other properties, including commercial.

Enfield is in the middle of a revaluation, and town officials have already signaled that commercial values won't rise enough to offset residential ones. That shifts more of the tax base onto homes. Even with a flat budget, many homeowners will see a bigger bill.

Appendix: 

New Milford 10% reduction.

Connecticut property assessment reduction law.