5/1/10 — The revaluation of Block Island property values, which takes place every three years, has seen property values declining by an average of nearly 20 percent, said Board of Assessors Clerk Lisa Ommerle. Official figures will not be available until next week, after the last appeals are settled Friday.

The revaluation began in January and included a statistical analysis of home sales and general home value trends since the last revaluation. The results of the home revaluation were mailed to the owners on April 5 and all appeals had to be filed by April 23. Around 40 residents appealed, 20 to 25 through letters and 17 who arranged appointments in-person.

The new numbers will be used to set the mill rate, which is used to balance out changes in property values when calculating the tax rate.

The town is increasing property tax revenue by 4.5 percent over last year and the mill rate will be adjusted to a higher level to make up for the lower property values — currently expected to rise from $3.58 per $1,000 of value to $4.60 per $1,000 of value, a change of 28.5 percent. This number is adjusted up or down every year to make sure that tax revenue doesn’t fluctuate with home values.

Finance Director Amy Land explained that the property revaluation does not affect the town’s budget but could affect individual tax rates. If a home is assessed to have a greater than 20 percent loss in value, the owner will likely see a tax increase of less than 4.5 percent; however, if the property is found to have lost less that 20 percent, the tax rate will be higher than 4.5 percent.

By adjusting the mill rate, the town is able to collect the amount of property taxes needed for the proposed budget despite falling home prices. The proposed tax levy for 2011 is $7,868,148, compared to last year’s $7,539,857, a difference of $328,291; the total proposed budget is $10,951,559.

The revaluation will also impact homeowners trying to sell their properties and who may have to readjust their asking price. In some cases owners may find that their homes are now worth less than the mortgage they are paying.

The final mill rate and home reassessment numbers will be calculated after the Financial Town Meeting, which will be held this Monday.