The pro-forma used to reassess every property at its purchase price in year one. That is right in states where a sale resets the assessed value, and it overstated the tax everywhere else.
- States where a sale does not reset the assessment. In Connecticut, New York City, New Jersey, Pennsylvania, North Carolina, Oregon, Arizona and Illinois, year-one property tax is now the tax on the current official assessment: the official bill, or the official assessed value times the published rate. The purchase price you enter does not change it, and the line says why.
- No official assessment on record. There, the estimate is kept and the line is marked for review, so you know to confirm the bill.
- Everywhere else, nothing changes. Where a sale resets the assessment, such as California, Florida and Michigan, year one is still the purchase price times the effective rate. The same applies, with a note, in states whose rules we have not yet confirmed.