Real Estate Taxes
Although property values in Greenwich are among the highest in the tri-state area, real estate taxes in Greenwich are among the lowest in the area.
Greenwich has been able to keep taxes more manageable primarily because of a historical pay-as-you-go approach to municipal government. Avoiding public debt has been a distinction of the Board of Estimate and Taxation and a long line of first selectman leading Greenwich through good economic times and bad.
Additional information is available from the Town of Greenwich’s Tax Assessor's Office at 203.622.7885 or at:
Town of Greenwich Town Hall
101 Field Point Rd., First Floor
Greenwich, CT 06830
Official Town of Greenwich Tax Assessors Office
How Real Estate Taxes Are Determined
Real Estate taxes in Greenwich are determined in Greenwich calculating the market value of the property, taking 70 percent of that assessed value and multiplying by the mill rate established by the Board of Estimate. The mill rate, which rises somewhat annually, is reset when a town-wide revaluation occurs.
With revaluation, the new mill rate is fixed when the amount needed to fund Greenwich's new annual budget is determined. The figure is calculated by dividing the total value of the all property appearing on Greenwich's Grand List. The rate is communicated in dollars per thousand of the assessed value.
Tax levy (budget to be funded) = tax rate (mill rate-per $1,000) Total value of Grand List (total value of all real estate) All real estate in Greenwich is taxed at the same mill rate with two possible exceptions. 1. Properties with access to the town sewer system pay a small, additional tax determined by a separate mill rate. 2. Properties in private association neighborhoods with their own sewer systems or other services pay and added "special tax."
By Connecticut statute communities in the state must revalue real estate for tax purposes per Statute. The law also stipulates that every property must be physically inspected at least once every 12 years.
All revaluations consist of four basic elements: 1. Compiling data on each property. 2. Collecting residential sales information on all sales over the previous four years. 3. Developing a formula between the relationships of property data to market sales calculations. 4. Applying the formula in a calculation that will determine the market value of each property in the period of revaluation.
As part of collecting new data and confirming old, appraisers make every attempt to inspect as many properties as possible to perform a subject-based appraisal to create a formula accurately reflecting a standard for all comparable properties.
Values are determined by three different methods, the Sales Comparison Approach, the Replacement Cost Approach and the Capitalization of Income Approach. The Sales Comparison Approach compares a property with similar properties that have recently sold in the same or similar neighborhoods. The Replacement Cost Approach estimates what the cost might be at current local prices for construction and labor to replace the building. Depreciation and lack of functionality values are subtracted to reach a net value for the buildings and then land value is added to reach a market value. The Capitalization of Income Approach is used primarily for commercial and investment properties. This method estimates the net rental income after expenses that would be generated for the property and then determines the market value based on the capitalization rates in the current market being paid by real estate investors.