City Hall proposes a narrow solution to this year’s assessments. What about everybody else?

If you think you got a little screwed on your taxes this year, New Haven City Hall is offering a possible solution.

But if you got really screwed, you’re on your own.

After scores of complaints, three tense aldermanic hearings, hundreds of appeals, more than 50 lawsuits and a letter from 12 New Haven aldermen calling for City Assessor Bill O’Brien to be fired, City Hall is starting to address taxpayer complaints.

City Hall is now offering to visit a business and inspect its assets, but only if the business was given a $5,000 assessment this year or if it was one of 65 nonprofits whose nonprofit status was stripped.

Assessments determine tax bills. Taxes on a $5,000 assessment are $219.

There were nearly 400 of those $5,000 assessments this year, which amounts to about 10 percent of the 3,800 businesses in New Haven.

Businesses are supposed to declare how much property they own — things like computers, furniture and office equipment — and its worth to the city every year. This year, many businesses reported one value and received notice that Assessor Bill O’Brien decided they owed more and gave them a higher value.

In cases where the business didn’t report anything, O’Brien is allowed by statute to assign a value.

Most of the businesses with the $5,000 assessment are small operations — some are artists with studios furnished with hand-me-downs and curbside-finds. Others are lone lawyers or psychiatric practices with little furniture.

At a press conference held just hours before a standing-room-only hearing about assessments on Monday, O’Brien stood next to Mayor John DeStefano, who announced changes to the way the city handles assessments and how taxpayers will be treated.

Citing a letter from 12 aldermen who wanted the mayor to fire O’Brien, DeStefano outlined six concerns, including hostility toward taxpayers and personal property assessments.

Within 60 days, DeStefano says, audio recorders will be installed in the assessor’s office and on office phones to record interactions with taxpayers. The office will also keep a complaint log and offer feedback cards for complaints or compliments.

O’Brien has been called “rude” by aldermen at meetings when he’s given curt, confusing and contradictory answers to their questions. At least three taxpayers this year have said he changed their assessments because he said he can’t trust businesses to declare their assets properly because “everybody lies.” O’Brien has denied saying that.

Some aldermen were not impressed with the changes. None were at that press conference, and they were not part of the discussions leading up to the decisions, they say. In fact, many said they didn’t know about the changes or the press conference until two hours before it happened.

“I think it’s a sham,” says alderman Mike Smart, who heads the aldermanic Tax Abatement Committee, which has been holding hearings on this year’s assessments.

Smart is upset that neither he nor committee members were part of the process. He says the mayor asked him to form a subcommittee to address this year’s assessment problems, but the mayor’s actions were revealed before the subcommittee’s first meeting.

“They haven’t even come close to addressing the issues,” Smart says angrily. Smart says the several hundred people at Monday night’s meeting prove this year’s assessments are a large problem. He says the evening’s testimony gave the City “a black eye.”

Most of DeStefano’s plans will affect future goings-on in the assessor’s office. Only one addresses some of this year’s issues.

DeStefano announced there will be offers of a “field audit” to the businesses that received a $5,000 assessment on their personal property and the 65 nonprofits.

“No one is going to trust these people to go into their business now,” alderman Darnell Goldson said during a break in Monday night’s six-hour hearing. “They’ll find that plastic plant in the corner that you didn’t declare and charge you for it.”

Mona Berman, who runs an arts consulting business out of her home, has been assessed at a few hundred dollars in the past.

This year, she was assessed at $6,250 — $5,000 plus a $1,250 penalty for filing late. Berman has loudly protested the assessment but does not want an audit.

She doesn’t trust the city anymore, she says. Plus, she says, her business is in her home — who’s to say City Hall staffers won’t claim that some of her home assets are taxable business assets?

“Look, this is an honest offer to do this,” says DeStefano. “You do run a risk. If we come in, we may find things — illegal apartments or things they didn’t report.”

DeStefano says he’d encourage people to take the offer.

He also says that there will be more site visits in the future. This year, O’Brien and his staff changed assessments at many businesses without ever setting foot in the business.

“We want to rely more heavily on field audits than on a determination made in the office,” DeStefano says.

Too little, too late says psychiatrist Eric Berger who received a $5,000 assessment.

His tax bill — $219 — is a negligible amount, he says. He’s more upset about the amount of time it’s taken to resolve the issue.

Berger isn’t sure if he’ll accept the audit offer yet.

The city’s letter about the audit asks that Berger fax or mail a copy of the declaration he gave to the city back in October — a request he calls “worse than lazy.”

“The way this has all been handled is appalling,” says Berger.

Still, some taxpayers were glad to get the offer.

Attorney Joseph Dobrowski received the letter from City Hall last week, and he’s asked for the audit.

In the past, Dobrowski’s tax bill has been $24. This year’s bill is nearly 10 times that.

“It’s about time they do what they’re supposed to do,” he says.

Dobrowski says he’s not worried that this second assessment will be screwy also.

“I assume it will work itself out,” he says.

But what about the other businesses, like Bru Cafe, which was assessed at $50,000, yet only owns a dozen chairs, a few tables, a couch, an espresso machine and a few coolers?

What about the East Street club R Bar, which declared $80,000 worth of property but was assessed at nearly $200,000? The club’s tax bill is $9,000.

“We’re only open 15 hours a week,” says R Bar owner Neil Riggione, who testified at Monday’s hearing. “We can’t afford that.”

Or several gas stations, which are being taxed on gas pumps as personal property when they claim they already pay real estate taxes on those same gas pumps?

At Monday’s press conference, DeStefano says he’s not aware of other problems, like Bru Cafe or the gas stations.

There are dozens of other examples of irate and confused business owners whose problems won’t be addressed by DeStefano’s solution.

So far, the only businesses that have received the “field audit” offers are those which received an across-the-board assessment, like the $5,000 ones, says DeStefano.

Questions or comments? Email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Share this story:
Facebook |Twitter |Digg |Reddit |Stumbleupon

Comments

Add New Search

solution  - option   |2010-07-28 15:43:19 The city charter affords the taxpayer an opportunity to appear in front of the Tax Abatement committee, which has the power to lower, defer or resind the amount based on the evidence presented. I think this would be a much more effective solution and would provide the most abused (those that have neither the time or the money to appeal) to be heard. Mr. Smart and the committee are certainly up to the task and the mayor nor O'Brien can refuse the decision. Kepp up the good work Betsy, and ask about O'Brien problems inj 2000-2003. There were many complaints back them also, but that has not been checked based on my readings Reply 0   0

Write comment
Name:
Email:	do not notifynotify
Website:
Title:
	Please input the anti-spam code that you can read in the image.

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."