A Connecticut municipality completed a revaluation in October. A property owner's assessed value increased from $210,000 to $280,000. The prior mill rate was 30 mills. The municipality is required to adjust the mill rate so that total tax revenue remains the same as before the revaluation. If the town's total grand list increased by exactly one-third due to the revaluation, what should the new mill rate be?
Correct Answer
A) 22.5 mills
If the total grand list increased by one-third (i.e., multiplied by 4/3), the municipality must reduce the mill rate proportionally to keep total revenue the same. New Mill Rate = Old Mill Rate ÷ (4/3) = 30 ÷ (4/3) = 30 × (3/4) = 22.5 mills. Verification: If the old grand list was X and old revenue = 30 × X/1,000, the new grand list is (4/3)X and new revenue = 22.5 × (4/3)X/1,000 = 30X/1,000. Revenue is unchanged. CGS § 12-62a requires this revenue-neutral mill rate adjustment following revaluation.
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