CLT
UPDATE
Sunday, February 1, 2004
Property tax abatement deadline:
tomorrow
Homeowners stunned by the size of their property tax bills can yell and scream, complain and moan, lament and lambaste.
But there's another option that might actually reduce the startling number staring back at them from the bottom line.
More than 1,000 homeowners in 13 North Shore communities filed for property tax abatements last year, according to assessors in those cities and towns. And almost half of them were successful....
The deadline on filing for abatements on this year's property tax bills is Feb. 2.
The Salem News
Friday, January 30, 2004
Homeowners seek relief through property tax abatements
Chip Ford's CLT
Commentary
"And almost half of them were successful...."
Tomorrow is the deadline, homeowners and taxpayers. We just wanted to
make sure that you are aware.
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Chip
Ford |
The Salem News
Friday, January 30, 2004
Homeowners seek relief through property tax abatements
By Paul Leighton, Staff writer
Homeowners stunned by the size of their property tax bills can yell and scream, complain and moan, lament and lambaste.
But there's another option that might actually reduce the startling number staring back at them from the bottom line.
More than 1,000 homeowners in 13 North Shore communities filed for property tax abatements last year, according to assessors in those cities and towns. And almost half of them were successful.
The abatements, or reductions, ranged from $36.51 for a homeowner in Ipswich to $6,459.18 for an estate in Topsfield. The average rebate for a homeowner in Beverly is around $300, according to Beverly Assessor Don
Dragt.
Mark DeFrancisco, a lawyer for the state Appellate Tax Board, said people can win property tax abatement cases if they do their homework -- and if the evidence is on their side. The deadline on filing for abatements on this year's property tax bills is Feb. 2.
"If you just come in and say, 'My taxes are too high,' well, amen, all of our taxes are too high," DeFrancisco said. "You must come in prepared. If you can say, 'You've got me assessed at more than the Jones property right down the street,' that makes the most convincing case."
Property taxes are based on the assessed value of your home, so if you have an issue with your bill, you must first take your case to the local assessors' office. Homeowners can apply for an abatement at no cost by filling out a form that explains why they think their home has been overvalued.
Dragt, the Beverly assessor, said it's not enough to simply cite a big increase in your property taxes. He advises people to take the form home and do the same kind of research that assessors do in determining a house's value.
"It's not just a matter of filling out a few lines," he said.
Homeowners should make sure the information on their property tax card -- the record on file at city and town halls, or on-line in some communities -- is correct. Many abatements are granted due to incorrect or incomplete information on those cards, assessors said.
Danvers Assessor Marlene Locke pointed to the example of a resident whose home was listed as having two bathrooms instead of one. An assistant assessor went to the home to check it out and verified there was just one bathroom. The Board of Assessors took $6,900 off the assessed value of the home, and the homeowner was given an abatement of $86.32.
"That's typical," Locke said.
Intimidating process
Dragt said homeowners in Beverly rarely have to appear in front of the Board of Assessors, a three-member board in each community that has the final say on whether or not an abatement is granted. Dragt said he schedules an appointment with virtually everyone who applies for an abatement, so he can visit the home and see for himself where the problem lies.
That way, Dragt said, he and the homeowner can work out the discrepancies at their kitchen table rather than in front of the Board of Assessors. Dragt can then recommend an abatement to the board, and the homeowner never has to attend a hearing.
"People are more comfortable in a less formal situation," he said. "I know the process sometimes is intimidating, so we try to cut that out."
Assessors said their records aren't always up to date because they inspect houses in person only once every 10 years. Any changes that might lower the home's value, such as the removal of a bathroom or damage to the basement, won't show up in the records unless homeowners notify the assessors' office, which usually happens through the abatement process.
Some homeowners don't allow assessors inside their houses -- it's not required by law -- so assessors have to guess at such key measurements as the number of bedrooms and bathrooms, based on comparable homes in the area.
"People should come in annually to check their property record card, or go on-line to make sure everything's correct," said Locke, the Danvers assessor.
If the problem is more than incorrect information, residents must do even more research if they want an abatement.
Don Bates, a member of the Board of Assessors in Salem, said homeowners need to show that their home has been assessed higher than comparable homes in the same area of town. This year's assessments are based on values as of Jan. 1, 2003, so homeowners should find out how much houses in their neighborhood were selling for around that date.
"I can remember people coming in with just their bill and saying, 'It's too high," Bates said. "They need to do their research."
Residents can hire a lawyer, but most residents decide to do the research themselves, according to assessors.
Appeal to state
If the local board of assessors denies an abatement, homeowners can appeal to the state Appellate Tax Board in Boston. There's a $100 application fee for owners of properties under $1 million.
The state board heard 6,456 appeals last year, according to DeFrancisco. That's up from 5,039 in fiscal year 2002 and 4,199 in 2001.
DeFrancisco said the state board doesn't keep track of how many people win abatements at that level. He said many cases are settled between the local assessor and homeowner before they ever reach the hearing stage.
"Like any court case, most of the cases are settled before they go to trial," he said.
Despite soaring property values that have caused higher tax bills, many local assessors said they haven't seen dramatic leaps in abatement applications. Many communities now revalue property every year, rather than once every three years, so the increases are being spread out more gradually. Starting next year, municipalities will be required to revalue properties every year.
Salem Assessor Frank Kulik said people are also more aware of the true market value of their homes, because so many of them have been refinancing due to low interest rates.
"They get appraisals when they refinance, so the sticker shock is not like it used to be," Kulik said.
Beverly resident Paul Belski said the abatement system can work. Three years ago he and about 150 other residents of the Cove neighborhood joined together to protest dramatic increases in their property taxes. About 90 percent of them got abatements -- including $1,500 for Belski -- after
Dragt, who had just taken over as the city's assessor, took another look at their assessments and determined they had gone up too much.
Belski said a group of neighbors spent a lot of time researching market values and other factors to present their case, and ultimately the city made a fair decision.
"If you think you have an unfair increase in your taxes, certainly speak up," he said. "But they're going to make you do the work."
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