your assessing department

YOUR ASSESSING
DEPARTMENT
What’s Behind The Curtain?
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Assessment Timeline:
• DATES:
– FISCAL YEAR 2015 (July 1, 2014 – June 30, 2015)
– DATE OF ASSESSMENT (January 1, 2014)
– MGL CHAPTER 653
• Assessed on January 1, 2014 in its physical condition as of July 1, 2014
– ACTUAL TAX BILL QUARTERLY (January 1, 2015)
– ACTUAL TAX BILL SEMI-ANNUAL (October 1, 2014)
– ABATEMENT PERIOD (30 Days after Mailing of Actual Tax Bill)
• Quarterly (January 1, 2015 to February 1, 2015)
• Semi-Annual (October 1, 2014 to November 1, 2014)
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DUTIES & RESPONSIBILITIES
OF THE ASSESSING DEPARTMENT
• VALUE EVERY PARCEL
• ASSESSORS MUST VALUE ALL REAL AND PERSONAL
PROPERTY WITHIN THEIR COMMUNITIES AS OF
JANUARY 1 EACH YEAR
• PERFORM THIS WORK WITH STAFF
• OR HIRE PROFESSIONAL APPRAISAL FIRMS
• DOR REVIEWS A COMMUNITY’S VALUES EVERY THREE
YEARS AND CERTIFIES THEY REFLECT CURRENT FAIR CASH
VALUES
• ASSESSED VALUATIONS IN THE INTERVENING TWO YEARS
MUST ALSO REFLECT CURRENT MARKET VALUE, AND
ARE REVIEWED BY THE DOR, BUT NOT CERTIFIED
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THE PROCESS
DATA
COLLECTION
ANALYZE DATA
Meet Department
of Revenue
Guidelines
REVIEW & TEST
METHODOLOGY
APPLY RESULTS
SUBMIT
VALUATIONS
FOR D.O.R.
APPROVAL
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HOW DO WE DO THAT?
– DATA COLLECTION (WHERE IT STARTS)
• INSPECT SALES
• INSPECT BUILDING PERMITS
• CYCLICAL INSPECTIONS
–
(EVERY PARCEL EVERY 9 YEARS)
• ABATEMENT INSPECTIONS
• KNOW THE COMMUNITY
–
–
–
–
THROUGH INSPECTIONAL SERVICES
INTERVIEWING BUYERS AND SELLERS
INTERVIEW REAL ESTATE AGENTS
SPEAKING WITH APPRAISERS
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DATA COLLECTION
1 STORY
1 STORY
w/FINISHED
ATTIC
1 3/4 STORIES
2 STORIES
1 1/2 STORIES
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DATA COLLECTION
WDK=
UAT =
FUS =
BAS=
UBM =
FGR =
Wood Deck
Unfinished Attic
Finished Upper Story
First Floor
Unfinished Basement
Framed Garage
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DATA COLLECTION
CALCULATIONS
COST APPROACH TO VALUE & GLA CALCULATIONS:
EFFECTIVE AREA VS. GROSS AREA:
Gross Area =
Actual Area Measured
Effective Area =
Area For Cost Calculations
BASE RATE $ 75.00/Sq.Ft.:
BAS =
1000 Sq.Ft. x $75.00/Sq.Ft. = $75,000
FUS =
1000 Sq.Ft. x $75.00/Sq.Ft. = $75,000
UAT =
1000 Sq.Ft. x 0.25 = 250 Sq.Ft. Effective Area x $75.00 = $18,750
UBM = 1,000 Sq.Ft. x 0.20 = 200 Sq.Ft. Effective Area x $75.00 = $15,000
TOTAL COST NEW TO BUILD = $183,750
ADD LAND VALUE = $75,000
TOTAL VALUATION BY COST APPROACH = $258,750
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ANALYSIS OF SALES
• REVIEW ASSESSMENT TO SALES RATIOS
ASSESSMENT/SALE PRICE = ASR
ASR’S MUST BE WITHIN 10% ABOVE OR BELOW
– BY USE
– BY BUILDING STYLE
– BY AGE
– BY PRICE RANGE (PRICE QUARTILE)
– BY NEIGHBORHOOD
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FIRST BY USE
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THEN BY STYLE
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THEN BY ACTUAL YEAR BUILT
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THEN BY NEIGHBORHOOD
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THEN BY SALE PRICE QUARTILE
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THEN BY LOT SIZE
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THEN BY BUILDING SIZE
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THEN BY SALE DATE
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AFTER ANALYSIS
• RUN OLD VALUE TO NEW VALUE REPORTS
• DOUBLE CHECK LARGE % SWINGS
• PERFORM A FIELD REVIEW OF NON-SALES
• CHECK CONSISTENCY
• REVIEW NEIGHBORHOOD CHANGES
• MAKE FINAL ADJUSTMENTS
• SUBMIT ALL FORMS TO D.O.R. FOR APPROVAL
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SOME ASSESSING TERMS
• LEVY – TAXES RAISED BY A COMMUNITY
• LEVY LIMIT – THE MAXIMUM DOLLAR AMOUNT A
CITY OR TOWN CAN LEVY IN A GIVEN FISCAL YEAR
• LEVY CEILING – THE MAXIMUM AMOUNT THE LEVY
LIMIT CAN BE IN A GIVEN FISCAL YEAR
• PROPOSITION 2 ½ – THE PROPERTY TAX LEVY CANNOT EXCEED THE LEVY
LIMIT FOR THE FISCAL YEAR
– THE LEVY LIMIT CANNOT EXCEED THE LEVY CEILING FOR
THE FISCAL YEAR
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HOW DOES THIS 2.5% WORK?
DETERMINE TAX LEVY
(amount to be raised)
Prior FY levy limit
+ 2-1/2% allowed increase
+ new growth
+ debt exclusion
+ override(s)
Current FY Permitted Levy
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ABATEMENTS
• ABATE TAXES
– IF TAXPAYERS FEEL THEY ARE BEING OVERVALUED, THEY CAN FILE AN
ABATEMENT APPLICATION WITH YOUR LOCAL ASSESSOR’S OFFICE
(YOUR ASSESSMENT DETERMINES YOUR SHARE OF TAXES)
– YOUR LOCAL ASSESSOR WILL PROVIDE A FULL INSPECTION OF YOUR
PROPERTY TO DETERMINE IT’S FAIR CASH VALUE
– IF YOU ARE DENIED, YOU HAVE THE RIGHT TO APPEAL THAT
DECISION TO THE APPELLATE TAX BOARD (ATB)
– REMEMBER AN ASSESSOR SWEARS BY OATH, THEY HAVE ASSESSED
ALL TAXABLE PROPERTY AT FAIR CASH VALUE
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EXEMPTIONS FROM LOCAL TAXES
• EXEMPTION OF TAXES
– EXEMPT PROPERTIES
• CHURCHES
• CHARITIES
• EDUCATIONAL
– EXEMPT PERSONS
• DISABLED VETERANS
• BLIND
• SENIORS
– REIMBURSMENTS
• THE STATE REIMBURSES LOCAL COMMUNITIES FOR A PORTION
OF MOST OF THE PERSONAL EXEMPTIONS
• THE ASSESSORS ARE RESPONSIBLE FOR FILING THE FORMS
NECESSARY FOR REIMBURSEMENT WITH DOR
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EXCISE TAXES
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EXCISE TAX CALCULATIONS
• THE MANUFACTURER’S SUGGESTED RETAIL PRICE
WHEN THE VEHICLE WAS NEW IS DEPRECIATED
In the year preceding the designated year of manufacture
50%
In the year of manufacture 90%
In the second year 60%
In the third year 40%
In the fourth year 25%
In the fifth and succeeding years 10%
CALCULATION:
PRICE NEW x % GOOD = VALUE
VALUE/1000 X $25 = TAX
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THANK YOU FOR ALLOWING US TO SPEAK TODAY
CINDY COSGROVE, CHIEF ASSESSOR – TOWN OF AUBURN
(508) 832-7700, Ext 1234 – ccosgrove@town.auburn.ma.us
CHRIS REIDY, PRINCIPAL ASSESSOR – TOWN OF SHREWSBURY
(508) 841-8353 - creidy@shresburyma.gov
JENNIFER SCLAR, PRINCIPAL ASSESSOR – TOWN OF GRAFTON
(508) 839-5335, Ext 1165 – sclarjen@grafton-ma.gov
WIL COURNOYER, PRINCIPAL ASSESSOR – TOWN OF SOUTHBRIDGE
(508) 764-5404 – wcournoyer@southbridgemass.org
WILLIAM MITCHELL, CHIEF ASSESSOR – CITY OF LEOMINSTER
(978) 534-7531, Ext 272 - wmitchell@leominster-ma.gov
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