Connecticut reassessment actions for commercial property investors

A large number of Connecticut municipalities are conducting revaluations for Grand List Oct. 1, 2023. Notices containing the proposed new assessments have started to be mailed out in October and will continue throughout November. These notices include opportunities to attend informal appeal hearings with the reassessment companies in sometimes in conjunction with the municipalities local assessor’s office to discuss the proposed assessment which is representative of 70 percent of the property’s fair market value.

Our approach to appealing your Connecticut reassessment valuation

Baker Tilly reviews all new proposed assessments using current P&L performance, recent market sale and lease comparables, along with full equalization reviews of similar and like-properties to arrive at an independent indicated market value relative to each property in the municipality it is located and to each unique market it competes in. It should be noted that even if a property’s assessment has not increased substantially or changed very little since its last reassessment five (5) years ago, an informal appeal is typically the best first step if the property or market conditions warrant a lower value. For municipalities reassessing for GL2023, their previous reassessments were likely performed as of Oct. 1, 2018 – thus the impact on market values from the COVID-19 pandemic or other economic sources has likely not yet been considered. In our experience, Baker Tilly has the best opportunity to negotiate and resolve proposed assessments that exceed market levels satisfactory to our clients during the informal appeal process.

The Connecticut reassessment appeal process

Once the informal appeal process concludes, typically by early to mid-January of the year following the reassessment, there is an opportunity to file a formal appeal of the assessment to the Board of Assessment Appeals (BOAA) by Feb. 20, 2024 in the municipality where the property is located. Some municipalities may also extend the BOAA filing deadline to March 20, 2024. Appeal forms should be available on the municipality’s website as the deadline approaches. BOAA appeal hearings will typically occur in mid to late spring. Once an appeal to the BOAA has been filed, after a decision has been rendered following a hearing or decision by the BOAA to not hold a hearing (as is its right if the property’s assessment exceeds a $1,000,000), the next level of appeal is filing a protest to the Superior Court. Appeals to the Superior Court will involve, at a minimum, engagement of Counsel, and Baker Tilly has teamed with multiple excellent well-regarded firms over many years resulting in significant savings on behalf of our clients.