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.

In addition to properties located in municipalities in reassessment years, Baker Tilly also recommends properties reassessed in the prior three to four years that were not appealed to the BOAA be reviewed for possible BOAA appeal in early 2024. If such a property was already appealed and resolved, there are limitations and requirements for any possible additional appeal. It should be noted that a municipality’s BOAA formal filing deadline is State-mandated, and no extensions are available. Baker Tilly stands ready to assist our clients for all of their properties located in Connecticut.

Connecticut grand list reassessments – Oct. 1, 2023

*Revaluation delay CT PA 22-6 from GL23 to GL24 (Norfolk, Willington, & Windsor Locks)
**Revaluation delay CT PA 22-6 elected to not delay GL23 Reval
***Next revaluation changed due to CT PA 22-74 (new reval zones)

Because the Connecticut reassessment system is complex and presents commercial property owners with unique opportunities both in and out of reassessment years, our Connecticut team recommends a complete portfolio review with one of our experts to determine the full extent of reassessment savings opportunities statewide.

The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.