To the Editor:

Driving around Bristol, or perusing social media, you are hard pressed not to see the “my taxes went up…” signs. Those that post or display these signs are correct. In fact, every town in the state could say the same regardless of the elected officials’ political affiliation. Unfortunately, we are still feeling economical “post-COVID” effects. And while those mentioned above are quick to blame the Mayor for this increase, if this is in fact your belief, I feel as though you may want to shake his hand as well, and I’ll explain why.

Hypothetically, If you purchased your home for $200,000, pre-COVID, and owe $100,000 you had a 50% Loan to Value, or $100,000 of equity in your home. Your taxes are based on the assessed value of your property, which is 70% of the market value.

The COVID real estate boom sent property values through the roof, and they still have not leveled out. Property values citywide are reassessed every five years, no matter the market conditions. In 2022, in the heart of the COVID boom, values were reassessed. They are due to be again in 2027. Your $200,000 property could suddenly become a $400,000 asset or greater, hypothetically. Along with that property value increase comes an assessment increase. It’s simple math. 70% of $400,000 is naturally going to be more than 70% of $200,000. This assessed value is what is used to determine the amount of taxes you pay on the property you own based on the mill rate.

For 95% of the population, the largest financial investment you will ever make is your home. While your property value increased, your assessed value increased, and your taxes increased, so did your home equity. The value went up, but the mortgage, or amount owed on the property stayed the same. Yes, your payment increased due to the tax increase, but your loan to value, or amount owed on the property versus what it is valued at, improved drastically. So that $200,000 initial home, on which you owe $100,000, is now valued at $400,000. Since you still only owe $100,000, your home equity has suddenly spiked to $300,000!!!

Your personal financial net worth has increased dramatically. Some say you can only realize those gains if you sell and I disagree. You can refinance or take out a home equity loan and borrow that money to make necessary home improvements, which will help to increase property value and lessen the impact of loan to value while borrowing against your home equity. You can also use that equity to consolidate high interest debt that you may be carrying.

The bottom line is, if you believe the Mayor is responsible for your extra, $200-2,000 a year tax increase, then I strongly suggest you shake his hand, because the larger the increase in your taxes, the higher your new market value is of your property. Which means your win net worth has improved.

At the end of the day, a mayor cannot increase or decrease your property value. They can only work with town officials to set the mill rate…which has decreased 5 mills in the last four years in an attempt to offset the increased assessed values. Well done Mr. Mayor, City Council and Board of Finance. 

 A resident of Bristol