Property Revaluation

The property tax is an "ad-valorem" (based on value) tax. The tax is apportioned to individual properties based on the value of the property. In Rhode Island, estimates of value are known as assessments. The assessed value (or assessment) is the value of property to be used for local taxation. The assessment of a large number of parcels for property tax purposes constitutes a highly specialized field of appraisal. It is termed mass appraisal and requires significant statistical analysis to develop accurate values. Mass appraisal is the process of valuing a group of properties as of a given date and using common data, standardized methods, and statistical testing.

Revaluation is a common feature of countries that have a property tax. As mentioned above, the property tax is based on value. Because property values change over time, states set statutory intervals to revalue taxable property. Since Rhode Island began conducting more frequent revaluations in the late 1990s, taxpayers have been spared the large swings in tax bills that were common when revaluations occurred only every ten years. In the United States, revaluation cycles vary, but they tend to be more frequent in regions with higher values and volatile real estate markets. Revaluation occurs as frequently as every year in several states, including Massachusetts. The rationale for full value assessments is so that it can be more easily determined if property is being assessed fairly and uniformly. 

For anyone unfamiliar with the revaluation process, the key point to remember is that when assessed values go up, the tax rate goes down. Please avoid the common mistake of applying the 2025 tax rate to the new proposed values. Additionally, revaluation is revenue neutral. In a revaluation year (and every year), there is a Levy Limit, This acts as a cap on the tax levy- the portion of the budget funded by property taxes. In Rhode Island, increases to the tax levy are capped at 4%. While the overall budget may increase by more than 4%, the tax levy cannot. Property revaluation does not change this rule. 

Will all property values change in a revaluation year? Most likely, yes. However, not all values will change at the same rate. During a revaluation, assessments do not change uniformly; instead, they shift based on market trends related to class, style, location, and price range. Market values may increase significantly for some neighborhoods and property types while others may increase at a more modest rate. A primary goal of revaluation is to ensure that assessed values accurately reflect market changes, allowing for a fair and uniform distribution of the tax burden. 

The new value notice will include instructions on how to proceed if you have questions or disagree with the proposed assessment. Individual appointments will be scheduled for any taxpayer who requests to speak with a representative from the revaluation firm. Due to the high volume of inquiries, the firm is better equipped to address your specific concerns at this stage than the Assessor’s office. Detailed property information will be available on the firm’s website, which will be updated to coincide with—or shortly follow—the mailing of the notices. Please note that you are not required to provide a formal appraisal of your property to attend an informal hearing. The revaluation company will review all concerns and adjust the proposed assessment where warranted. If you disagree with the firm’s final decision, you maintain the right to file an appeal with the Town Assessor. 

Vision Government Solutions Taxpayer Revaluation Information