What is the Property Growth Factor and how is it calculated?
The Property Growth Factor reflects growth in a municipality’s tax base. It is equal to the amount of new property divided by the total assessed value of all property. “New property,” or property assessed for the first time since the last April 1st, includes newly created lots, new buildings, building additions, and new personal property. To avoid the impact of reassessments, most towns divide the total value of new property by the most recent total value of all assessed property in the town. New property that is tax-exempt is included in the calculation. For example, if a new tax-exempt regional waste management facility is built, the assessed value of the new facility should be included as “new property.
