Massachusetts Property Tax Update Archive

UPDATED september 2022

Covid-19 does not afford Massachusetts Taxpayer Disaster Relief

Massachusetts has a statue that allows for property tax relief in the event of loss of value due to a fire or natural disaster. In March of 2020 the Governor of Massachusetts in an emergency declaration declared the Covid-19 Pandemic was a natural disaster. The Appellate Tax Board recently ruled that a taxpayer in this case a nursing home, was not entitled to natural disaster relief. The reasoning is believed to be that the statue requires physical damage due to a natural disaster or fire and that the Covid-19 Pandemic created no physical damage. This issue may be appealed to the Massachusetts Appeals Court. As of now, there is probably no property tax disaster relief due to the Covid-19 Pandemic in Massachusetts. This reasoning has been prevalent throughout the nation where states have similar property tax disaster relief statues.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED june 2022

There are many ways for your tax appeal to die

In Massachusetts real estate tax appeals are fraught with deadly traps and daunting obstacles. In order for an appeal to be valid a taxpayer must comply with the following: 

1) Generally every installment of the taxes must be paid on time.

2) The Application for Abatement must be filed on time.

3) Often multiple requests for information must be complied with and filed on time.

4) The Petition to the Appellate Tax Board along with the highest filing fees in the nation must be filed on time.

5) When you are afforded a trial at the Appellate Tax Board there is a high burden placed upon the taxpayer to prove the property is over assessed. This usually requires the hiring of an independent appraiser which is usually expensive.

The requirements and costs of prosecuting a successful real estate tax makes it a difficult task.  There are so many ways for your tax appeal to die.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED December 2021

Massachusetts Fiscal Year 2021 Property Tax Bills have been sent

Most Jurisdictions in Massachusetts sent out there actual fiscal year 2022 property tax bills during December of 2021. The actual property tax bill is the first tax bill of the fiscal year that contains an assessed value and a tax rate. It is from this actual property tax bill that rights of appeal accrue. In most cases the fiscal year 2022 filing deadline is February 1, 2022. It is important to review your actual property tax bill as many communities in the commonwealth now change their assessments each fiscal year. In most cases the timely payment of property taxes is a jurisdictional prerequisite to a valid property tax appeal. Timely payment means that payment must be mailed to the tax collector by the due date. It is incumbent of the taxpayer to prove the date of mailing. Taxpayers need to be vigilant as the taxing authority has the advantage at every turn.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED September 2021

In Massachusetts a Fiscal Year 2022 Appeal is timely for Covid-19 Property Tax Relief

If a propery suffered a reduction in value because of the Covid-19 Pandemic a Fiscal Year 2022 tax appeal is timely. In general, Fiscal Year 2022 property tax appeals must be filed on or before February 1, 2022. Most of the actual Fiscal Year 2022 bills from which appeal rights accrue will be sent out in December of 2021. The Fiscal Year 2022 assessing date is January 1, 2021. This January 1, 2021, assessing date is of particular significance as the negative effects on property values due to the Covid-19 Pandemic took place during January 1, 2021, and in the months preceding January 1, 2021. In many cases these negative effects continue during calendar 2021. Please be aware that Massachusetts has an unusual and draconian law that all taxes must be paid timely in order to effectuate a valid appeal. If a taxpayer is late paying his taxes, he is denied a hearing.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED june 2021

Fiscal Year 2021 Rapacity Still Has Life

In Massachusetts almost all of the Fiscal Year 2021 property tax bills have been sent. The Fiscal Year 2021 begins on July 1, 2020 and ends on June 30, 2021. In recent years, the Assessors seem to have been sending revised or omitted property tax bills with greater frequency. These revised or omitted Fiscal Year 2021 property tax bills must be completed by June 20, 2021. If a taxpayer receives this unpleasant surprise, he may file for an abatement with the local Board of Assessors within 3 months after the tax bill is sent. Once the June 20 revised or omitted property tax date has passed the assessor must wait until Fiscal Year 2022 to send another property tax bill. This limitation does not apply to personal property tax bills issued after an audit or when there have been improvements to the property that increases the value by greater than 50%.

David G. Saliba, Esq.
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED march 2020

Devaluation of Real Estate Due to the Covid-19 Virus

As of March 2020, the COVID-19 pandemic has caused a serious disruption in many businesses. Some businesses have shut their doors, and some will never reopen. It is unknown how long the crisis will continue. This leaves property owners in a poor position to pay mortgages, employees, and other bills. In Massachusetts the assessing date is January 1. The next tax bill issued will be for Fiscal Year 2021. That tax bill has an assessing date of January 1, 2020. A problem for property owners is that on January 1, 2020 in general the economy was doing well. Notwithstanding the disconnect between the assessing date and the timing of the COVID-19 pandemic it would be prudent for property owners to file for an abatement for Fiscal Year 2021. Many assessors will want to deal with this obviously serious problem sooner rather than later.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED december 2019

Massachusetts Fiscal Year 2020 Property Tax Bill are to be issued

Most jurisdictions in Massachusetts sent out there Actual Fiscal Year 2020 Property Tax Bills in December of 2019.  The actual property tax bill is the first tax bill of the Fiscal Year that contains an assessed value and a tax rate. It is from this actual property tax bill that rights of appeal accrue. In most cases the Fiscal Year 2020 filing deadline is February 1, 2020. It is important to review your actual property tax bill as many communities in the Commonwealth are revaluing. In most cases the timely payment of property taxes is jurisdictional prerequisite to a valid property tax appeal. Timely payment means that payment must be mailed to the Tax Collector by the due date. It is incumbent on the taxpayer to prove the date of mailing. Taxpayers need to be vigilant as the taxing authority has the advantage at every turn.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED JUNE 2019

In Massachusetts Be Prepared for Expensive Access to Justice

The deadline for filing most petitions to the Massachusetts Appellate Tax Board is approaching. The filing fees required to enter your petition are the highest in the nation. The filing fees generally started at $100 for property assessed at up to $1,000,000. For assessed values over $1,000,000 the filing fee is .10 cents per thousand in addition to the $100. This incremental increase in filing fees increases to a maximum of $5,000. A $5,000 filing fee would apply to $50,000,000 assessment, a $4,000 filing fee would apply to a $40,000,000 and so on. These filng fees apply to every fiscal year assessment is appealed, e.g. if there are two years pending at the Appellate Tax Board two separate filing fees must be paid. The filing fees are a significant expense. If you are not aware, these filing fees can be an unpleasant surprise.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED december 2018

Beware Property Taxes Must be Paid on Time

In Massachusetts the timely payment of tax bills is jurisdictional prerequisite to a valid real estate tax appeal to the Appellate Tax Board. There are some very limited exceptions to this rule. Most taxing jurisdictions send out quarterly property tax bills. In those jurisdictions the taxpayer must make each of the four tax payments on time. With limited exceptions, being just one day late or just one dollar short on any payment can deprive a taxpayer of his opportunity to be heard. This draconian rule is unique to Massachusetts and only applies to real estate tax appeals and not appeals related to any other type of tax. This is just one of the very many ways to lose a property tax appeal. Many think that the taxpayers' right of appeal should not be so fragile as a tax appeal is a fundamental right of redress against one of the government's most powerful actions.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED june 2018

Beware of Personal Property Taxes in Massachusetts

The Massachusetts Fiscal Year 2019 commences on July 1, 2018 and runs until June 30, 2019. The assessing or valuation date for Fiscal Year 2019 is January 1, 2018. In most cases the actual tax bills to which appeal rights accrue will be sent out at the end of 2018. In general, all property whether real or personal is alleged to be assessed at 100% of fair market value. Massachusetts has a labyrinth of laws concerning the taxability of personal property. There are many scenarios where certain types of personal property are exempt from local taxation. This is particularly true when the owner of the personal property is a corporation. If you receive a personal property tax bill it is advisable to consult a property tax attorney regarding the taxability of your property. The local assessors have been known to tax personal property that is clearly exempt from local taxation.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED March 2018

Ignoring the Assessors' Request for Information is a trap for the unwary

Most taxing jurisdictions in Massachusetts will not send out their actual Fiscal Year 2019 property tax bills until the end of Calendar Year 2018.  The Fiscal Year 2019 has an assessing date of January 1, 2018.  In most cases the condition of the property both physical and financial and the condition of the real estate market as of January 1, 2018 is pertinent in valuing the property for Fiscal Year 2019.  Many assessors have sent out requests for information to property owners requesting information regarding the financial and physical condition of their properties as of January 1, 2018. The responses to these requests are generally due within sixty days of the request.  The failure to answer a request timely will likely bar the right of a Fiscal Year 2019 tax appeal.  In addition, the assessors may levy a $250 penalty for the failure to answer these requests for information.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED December 2017

Beware Massachusetts Fiscal Year 2018 property tax bills have been sent

The 2018 Fiscal Year 2018 for cities and towns in Massachusetts runs from July 1, 2017 to June 30, 2018. Most jurisdictions have sent out there actual fiscal year 2018 property tax bills in December of 2017. The actual property tax bill is the first tax bill of the fiscal year that contains an assessed value and a tax rate. It is from this actual property tax bill that rights of appeal accrue. In most cases the fiscal year 2018 filing deadline is February 1, 2018. It is important to review your actual property tax bill as many of the 351 cities and towns in the Commonwealth are revaluing in their jurisdictions for fiscal year 2018. It is important to note that generally the timely payment of all property taxes is a jurisdictional prerequisite to a valid tax appeal. Timely payment means that payment must be post marked by the due date.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

UPDATED JULY 2017

Discrimination in Taxation is Okay

In Massachusetts, there is a constitutional mandate that there be no discrimination between taxpayers. In 1978 the Constitution of the Commonwealth of Massachusetts was amended to allow for an exception to this rule. That amendment allowed the assessment of four classes of REAL PROPERTY and each class could be taxed differently. These classes are determined to be (1) commerical (2) industrial (3) residential and (4) open space. Generally commerical and industrial properties are taxed at a higher rate. It is the practice in the Commonwealth to tax PERSONAL PROPERTY at the higher commercial and industrial real property tax rate. In the case of Verizon v. Boston Board of Assessors, 475 Mass. 826 (2016), Verizon appealed challenging this form of taxation stating that it was unconstitutional to tax its personal property at the higher real property tax rate. The Supreme Judicial Court of Massachusetts held that the taxing of personal property at the higher real property tax rate was constitutional.  The reasoning is that this is a constitutional question that must be interpreted broadly and that taxing personal property as real property is in keeping the general purpose of the amendment.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

UPDATED MARCH 2017

The timely payment of tax bills is required for an appeal

In Massachusetts, with limited exceptions, real estate property taxes must be paid on time in order to effectuate a valid tax appeal. Most communities send out property tax bills in quarterly installments. There are some communities that send out semi-annual installment tax bills. In the past, in those communities that sent out quarterly installments only the third and fourth quarter installments had to be paid timely along with any outstanding balance and accrued interest. The law has recently been amended requiring that all installments of a tax bill, with limited exceptions, must be paid on time in order to effectuate a valid real estate tax appeal. There is no other jurisdiction that has such a draconian requirement. There is an additional change in the law that slightly ameliorates the harshness of this rule. That is that the post mark date will be considered the payment date for establishing a timely payment of tax.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated September 2016

Property Tax Payments Mail Box Rule Follow "The Mail Box Rule"

In Massachusetts the timely payment of property taxes is generally a jurisdictional prerequisite to a valid property tax appeal to the Appellate Tax Board.  This means that the tax payment has to be in the Collector of Taxes Office by the due date.  A new bill was just signed by the Governor providing that the mailing of a tax payment on the due date is considered timely payment for the purpose of maintaining a valid appeal at the Appellate Tax Board.  This is commonly referred to as \"The Mail Box Rule\".  This new law brings Massachusetts in closer sync with how all other tax payments are treated in the Commonwealth.  \"The Mail Box Rule\" is an amelioration of the unusual and draconian Massachusetts rule that requires the timely payment of property tax in order for a taxpayer to be afforded a valid property tax appeal.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated June 2016

In Massachusetts Fiscal Year 2017 Has Commenced

In Massachusetts the fiscal year 2017 commences on July 1, 2016 and runs until June 30, 2017. The tax assessment or valuation date is generally January 1, 2016. For new construction in progress after January 1st this can be extended to June 30, 2016. Some assessors just can\'t resist that new construction after the first of the year. Most jurisdictions opt for quarterly tax bills. In general all taxes must be paid timely in order to effectuate a valid appeal. There are some very narrow exceptions to this rule. It is most advisable to pay all taxes when due as late payments are likely to affect the validity of a property tax appeal. Late payments also cause the taxpayer to incur interest at the ridiculous rate of 14%. It is interesting to note that if a taxpayer is granted an abatement he receives 8% interest on the tax refund.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated March 2016

Surprise Fiscal Year 2016 Property Tax Bills Can Still Be Sent

In Massachusetts almost all of the fiscal year 2016 property tax bills have already been sent. The fiscal year 2016 begins on July 1, 2015 and ends on June 30, 2016. In recent years the Assessors seem to have been sending revised or omitted property tax bills with greater frequency. These revised or omitted fiscal year 2016 property tax bills must be completed by June 20, 2016. The bills must be sent out within a reasonable time after June 20th. If a taxpayer receives this unpleasant surprise he may file for an abatement with the local Board of Assessors within 3 months after the tax bill is sent. Once the June 20th revised or omitted property tax date has passed the assessor must wait until fiscal year 2017 to send another property tax bill. This limitation upon the assessors does not apply to personal property tax bills issued after an audit.

David G. Saliba, Esq.
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated December 2015

Beware Massachusetts Fiscal Year 2016 Property Tax Bills To Be Sent Out

The 2016 Fiscal Year for cities and towns in Massachusetts runs from July 1, 2015 to June 30, 2016.  Most jurisdictions will send out there Actual Fiscal Year 2016 Property Tax Bills in December of 2015.  The Actual Property Tax Bill is the first tax bill of the Fiscal Year that contains an assessed value and a tax rate.  It is from this Actual Property Tax Bill that rights of appeal accrue.  In most cases the Fiscal Year 2016 filing deadline is February 1, 2016.  It is important to review your Actual Property Tax Bill as approximately one-third of the 351 cities and towns in the Commonwealth are revaluing in their jurisdictions for Fiscal Year 2016.  It is important to note that in most cases the timely payment of property tax is a jurisdictional prerequisite to a valid tax appeal.  Timely payment means that payment must be delivered by the due date.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated June 2015

Surprise! You Just Received an Omitted or Revised Assessment

In Massachusetts, June 20, 2015 is generally the last day that the assessors can assess real property that has been unintentionally omitted from the fiscal year 2015 annual assessment.  The June 20, 2015 date is also generally the last day that the assessors can revise an assessment of real property that was unintentionally assessed incorrectly for fiscal year 2015.  The June 20, 2015 date applies to fiscal year 2015 assessments of real property only.  The assessors cannot go back before fisca year 2015 to assess an omitted assessment or to revise an assessment.  Generally, if the assessors do not correct the omission or error by June 20, 2015, the fiscal year 2015 assessed value for real property cannot be changed.  If you are aggrieved by an omitted or revised assessment you have three months from the date of notice of the assessment is sent to file an Application for Abatement with the assessors. 

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated March 2015

The Ignoring The Assessors' Request For Information Has Consequences

Most jurisdictions in Massachusetts will be sending out their fiscal year 2016 property tax bills at the end of this year. In most cases the fair market value as of January 1, 2015 is pertinent in valuing the property for fiscal year 2016. Prior to sending out the property tax bills the assessors often send out requests for information to owners of commercial and industrial properties. These requests usually ask for calendar year 2014 income and expenses and a rent roll as of January 1, 2015. A response to these requests is generally due within sixty days of the request. The failure to respond to the information requisition will likely result in a dismissal of any fiscal year 2016 tax appeal. Also the assessors may levy a $250 penalty for failing to respond to the request. In most cases it is not advisable to ignore the assessors' information requisitions.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated December 2014

The Late Payment Of Tax Can Deprive You Of Due Process

In the property tax appeal the Massachusetts Appellate Tax Board is the forum where you are granted a hearing to determine the value In most cases in order to have a valid tax appeal in Massachusetts your real estate property taxes must be paid timely. This means that generally the full amount of tax due must be in the hands of the collector of taxes on or before the due date. The mailing of the tax payment on the due date does not suffice. Thus, in most cases if your taxes are one day late or one dollar short the taxpayer will not be granted a hearing on the merits of his appeal. This rule is unprecedented throughout the fifty states. Only Massachusetts adheres to this draconian standard. Ironically there is nothing in the law that prevents the assessors from making an abatement of property taxes if the taxes are paid late or even if they are not paid. It is only on a further appeal from the assessor's decision that the taxes must be paid timely.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

UPDATED September 2014

In Massachusetts The Appellate Tax Board Determines Value

In the property tax appeal the Massachusetts Appellate Tax Board is the forum where you are granted a hearing to determine the value of your property.  The Appellate Tax Board consists of five Members one of which also serves as the Chairman.  The Members of the Appellate Tax Board are appointed by the Governor.  Only questions of law and not questions of fact may be appealed beyond the Appellate Tax Board.  The issue of value is a question of fact and therefore the Appellate Tax Board is the final place where questions of value are answered.  The Appellate Tax Board has a wide degree of discretion in determining value.  It may pick and choose what evidence it wants to accept and what evidence it wants to reject regardless of who presented the evidence.  The Appellate Tax Board has a tremendous amount of power over your property tax appeal.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated June 2014

Massachusetts Personal Property Tax Rates Are Questionable  

The Massachusetts Fiscal Year 2015 will commence on July 1, 2014 and run until June 30, 2015. The Fiscal Year produces local property tax bills with an assessing date of January 1, 2014. Many communities have adopted different tax rates for different classes of property. When communities opt for these varied tax rates, commercial class and industrial class properties generally have higher tax rates than residential class properties. Some communities assign personal property to the higher tax rates that are applied to commercial class and industrial class properties. This may not be constitutional as the Constitution of the Commonwealth specifically provides for these varied tax rates for real property and is silent as to varied tax rates for personal property. One should be aware of their personal property tax assessment and consider appealing the tax bill if the higher tax rate has been applied to the assessed value.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated March 2014

Failure To Answer The Assessor’s Request For Information Can Have Consequences   

Most cities and towns in Massachusetts will not send out their Fiscal Year 2015 property tax bills until the end of Calendar Year 2014. In most cases the financial and physical condition of the property as of January 1, 2014 is pertinent in valuing the property for Fiscal Year 2015.

Prior to sending out property tax bills assessors are increasingly sending out requests for information to taxpayers. These requests pose questions regarding the physical and financial condition of their property as of January 1, 2014. This usually includes a request for income and expense information for the twelve months leading up to January 1, 2014. The response to these questions is generally due within sixty days. The failure to respond to these questions will likely bar the right to a Fiscal Year 2015 property tax appeal. In addition the assessor may levy a $250 penalty for failing to answer the request for information.

American Property Tax Counsel (APTC)

 

Updated December 2013

For Most Massachusetts Jurisdictions Now Is The Time To File

Most jurisdictions in Massachusetts will be sending out their fiscal year 2014 actual property tax bills by the end of December 2013. The fiscal year 2014 pertains to the fiscal period July 1, 2013 to June 30, 2014. The assessing date for fiscal year 2014 is January 1, 2013. For fiscal year 2014 each parcel of property must be assessed at the fair market value as of January 1, 2013. An owner, taxpayer or person who has an interest in the property in most cases has until February 1, 2014 to file an Application for Abatement with the local Board of Assessors. In most cases all property taxes must be paid timely without incurring interest in order to effectuate a valid appeal. The Assessors have three months to act upon the Application for Abatement. If the Assessors fail to act upon the Application within three months the Application is deemed to be denied.

David G. Saliba
Saliba & Saliba
American Property Tax Counsel (APTC)

 

Updated September 2013

In Massachusetts Your Tax Appeal Will Be Heard At The Appellate Tax Board

If your Application for Abatement of property taxes is denied by the local assessor, and you wish to appeal that denial you can file a petition with the Appellate Tax Board. At the Appellate Tax Board you will be granted a hearing where a permanent record is made and the rules of evidence apply. The Appellate Tax Board is the final arbiter of fact and only questions of law can be appealed. The Appellate Tax Board consists of five members appointed by the Governor. Not more than three members of the Appellate Tax Board may be from the same political party. The term of appointment for each member is six years. After six years, a member must be reappointed if he or she wishes to continue to serve. The process of appointment and reappointment is political in nature. It is wise for a taxpayer seeking property tax abatement to be aware of this fact.

 

Updated June 2013

You Need to Be a Cost Expert to Testify to Cost

In Massachusetts the cost approach to value is usually is not relied upon by the Appellate Tax Board in order to ascertain fair market value. In those rare cases that the cost approach to value is relied upon, such as in the valuation of a special purpose building, the Appellate Tax Board will only accept testimony regarding the cost to construct from a cost expert. A cost expert is either an architect, contractor, or engineer. A real estate appraiser regardless of his or her experience in appraising will usually not be allowed to testify as to cost unless he or she is also an architect, contractor, or engineer. This rule regarding cost evidence is somewhat unique to Massachusetts. It is reasoned that real estate appraisers are not qualified to give evidence as experts to cost because their training and experience is not in the field of construction.

 

Updated March 2013

The Burden of Proof in a Tax Appeal is Heavy

In Massachusetts appeals from a refusal of the assessors to abate property taxes are brought before the Appellate Tax Board. There the taxpayer is afforded a hearing. An Appellate Tax Board Member hears the case. A record of the hearing is made and the Appellate Tax Board is the final arbiter of fact. Only questions of law may be appealed to the Massachusetts Appeals Court. At the hearing the taxpayer bears the burden of proving that a tax assessment is incorrect. Until the taxpayer sustains his burden of proof the assessment is presumed to be correct. The Member hearing the case has a wide berth of discretion in determining whether or not the burden of proof has been met. However, the courts have stated that evidence of a taxpayer having the burden of proof may not be disbelieved without an explicit and objective reason. All too often reasons for disbelief are found.

 

Updated December 2012

For Most Massachusetts Jurisdictions Now Is the Time to File

Most jurisdictions in Massachusetts will be sending out their fiscal year 2013 actual property tax bills by the end of December 2012. The fiscal year 2013 pertains to the fiscal period July 1, 2012 to June 30, 2013. The assessing date for fiscal year 2013 is January 1, 2012. For fiscal year 2013 each parcel of property must be assessed at the fair market value as of January 1, 2012. An owner, taxpayer or person who has an interest in the property in most cases has until February 1, 2013 to file an Application for Abatement with the local Board of Assessors. In most cases all property taxes must be paid timely without incurring interest in order to effectuate a valid appeal. The Assessors have three months to act upon the Application for Abatement. If the Assessors fail to act upon the Application it is deemed to be denied.

 

Updated September 2012

In Massachusetts the Standard of Fair Market Value is Fee Simple

Massachusetts will be sending out its Fiscal Year 2013 property tax bills within the next few months. These tax bills purportedly reflect the fair market value of the property as of January 1, 2012. The standard of fair market value is fee simple and not leased fee. The fee simple standard of value does not necessarily mean the price that the property could sell for. Some properties could sell for significantly more than they are assessed for and still be overvalued on a fee simple standard. For example if a property is fully leased to "A" rated tenants who have signed long term leases at significantly above market rental rates that property will sell at a leased fee price. That leased fee selling price will be at a premium above the fee simple value of the property because the buyer is guaranteed rents that are above market for years to come.

 

Updated June 2012

In Massachusetts Fiscal Year 2013 To Commence

The Massachusetts fiscal year 2013 will commence on July 1, 2012 and runs until June 30, 2013. Most assessing jurisdictions will issue their fiscal year 2013 tax bills between September and December of 2012. The fiscal year 2013 tax bills have an assessing valuation date of January 1, 2012. The assessment presumes to represent the fair market value of the property as of January 1, 2012. If a party is aggrieved by the assessment it may file an Application for Abatement with the local Board of Assessors. The Board of Assessors have three months from the filing of the Application for Abatement to act upon the Application. That three month period can be extended by the consent of the applicant. An applicant may appeal the decision or the failure to decide by the Board of Assessors by filing a petition with the Commonwealth of Massachusetts Appellate Tax Board.

 

Updated March 2012

There Are Consequences To Ignoring The Assessor's Request

Most communities in Massachusetts will not send out their actual fiscal year 2013 property tax bills until the end of calendar year 2012. The fiscal year 2013 has an assessing date of January 1, 2012. In most cases the condition of the property both physical and financial and the condition of the real estate market as of January 1, 2012 is pertinent in valuing the property for fiscal year 2013.

Many assessors have sent out requests for information to property owners requesting information regarding the financial and physical condition of their properties as of January 1, 2012. The responses to these requests are generally due within sixty days of the request. The failure to answer a request timely will likely bar the right of a fiscal year 2013 tax appeal. In addition, the assessors many levy a $250 penalty for the failure to answer this request for information.

 

Updated December 2011

Pay Your Taxes Timely Your Appeal Depends On It

One of the ways in which Massachusetts is unique is that for most real estate tax appeals you must pay your taxes on time in order to effectuate a valid appeal. This means that the tax payment must be in the hands of the local Collector of Taxes by the due date. This is true even if the taxpayer does not receive the tax bill. It is presumed that the taxpayer knows when the taxes are due! The Appellate Tax Board on its own motion reviews the property tax payments to verify that they have been paid timely. In most cases, if the taxes are not paid timely the taxpayer will not be afforded a hearing at the Appellate Tax Board. If the taxes cannot be paid, or if a late tax payment is discovered, consult with an attorney as there are some very limited exceptions to this odd and draconian rule.

 

Updated September 2011

Pay Your Taxes Timely Your Appeal Depends On It

One of the ways in which Massachusetts is unique is that for most real estate tax appeals you must pay your taxes on time in order to effectuate a valid appeal. This means that the tax payment must be in the hands of the local Collector of Taxes by the due date. This is true even if the taxpayer does not receive the tax bill. It is presumed that the taxpayer knows when the taxes are due! The Appellate Tax Board on its own motion reviews the property tax payments to verify that they have been paid timely. In most cases, if the taxes are not paid timely the taxpayer will not be afforded a hearing at the Appellate Tax Board. If the taxes cannot be paid, or if a late tax payment is discovered, consult with an attorney as there are some very limited exceptions to this odd and draconian rule.

 

Updated June 2011

The Revaluation of Your Property May Have to Wait

In Massachusetts the fiscal year 2012 commences on July 1, 2011 and ends June 30, 2012. Most cities and towns will be sending out their actual fiscal year 2012 property tax bills in December of 2011. The assessed value on this tax bill purportedly reflects the fair market value of the property as of January 1, 2011. The 351 cities and towns in Massachusetts have been under a mandate to revalue their communities every three years. In recent years exceptions to this triennial requirement have been allowed. The reason for these exceptions is in part that a disproportionate amount of cities and towns were scheduled to revalue in certain years. This caused the State Department of Revenue to have a disproportionate amount of communities to review and certify as being properly revalued in some years and relatively few in others. The staggering of revaluation dates helps to keep the process of regular revaluations more manageable.

 

Updated March 2011

Assessor’s Request For Information Can Be A Trap For The Unwary

In Massachusetts many communities have sent out or will send out Requests for Information pursuant to M.G.L. Chapter 59 Section 38D.  These requests usually ask for income, expenses and rent rolls for commercial and industrial properties.  These requests are purportedly to assist the assessor in establishing the upcoming Fiscal Year 2012 property tax assessments.  The assessor will typically request calendar year 2010 income and expenses and rent rolls as of January 1, 2011.  The Fiscal Year 2012 has an assessing or valuation date of January 1, 2011.  The failure to respond to these Requests for Information in most cases will bar the taxpayer’s right to appeal the future Fiscal Year 2012 assessment.  In addition, the penalty for failing to respond to the Requests for Information has recently been raised from $50.00 to $250.00.  The failure to respond to these requests can prove to be a trap for the unwary taxpayer.

 

Updated December 2010

Massachusetts Fiscal Year 2011 Tax Bills Are Being Sent

Most jurisdictions in Massachusetts will be sending their fiscal year actual 2011 property tax bills out at the end of the year. These bills have an assessment or valuation date of January 1, 2010. The assessed values will purportedly reflect a 100% fair cash value or market value of the property. If the property is over assessed the taxpayer generally has until February 1, 2011 to file an Application for Abatement with the local Board of Assessors. The assessors have three months after the filing of the application to either grant or deny an abatement unless the taxpayer consents to allowing the assessors more time to act. After the denial of the Application for Abatement or other action or the failure of the assessors to act within three months of the filing, the taxpayer has an additional three months to file a petition with the State Appellate Tax Board.

 

Updated September 2010

In Massachusetts Fiscal Year 2011 Has Commenced

The Massachusetts fiscal year 2011 commenced on July 1, 2010 and runs until June 30, 2011. Most assessing jurisdictions will issue their fiscal year 2011 tax bills between September and December of 2010. The fiscal year 2011 tax bills have an assessing valuation date of January 1, 2010. The assessment presumes to represent the fair market value of the property as of January 1, 2010. If a party is aggrieved by the assessment he may file an Application for Abatement with the local Board of Assessors. The Board of Assessors have three months from the filing of the Application for Abatement to act upon the Application. That three month period can be extended by the consent of the applicant. An applicant may appeal the decision or the failure to decide by the Board of Assessors by filing a petition with the Commonwealth of Massachusetts Appellate Tax Board.

 

Updated March 2010

Do Not Ignore The Assessors' Requests For Information

In most cases communities in Massachusetts will not send out their actual fiscal year 2011 property tax bills until the end of 2010. The fiscal year 2011 has an assessing or valuation date of January 1, 2010. In most cases it is the condition of the property either physical and/or financial on January 1, 2010 and the twelve months proceeding January 1, 2010 that is most pertinent in valuing property. The assessors are now or have recently sent out requests for information inquiring as the income, expenses, and conditions of certain properties as of January 1, 2010 and Calendar Year 2009. These requests are purportedly to assist the assessors at arriving at a fair market value for the upcoming fiscal year 2011. The failure to answer these requests will probably bar the right of any fiscal year 2011 tax appeals. Please do not ignore these requests.

 

Updated December 2009

Most Jurisdictions In Massachusetts Are Sending Out Tax Bills

Most jurisdictions in Massachusetts will be sending out their fiscal year 2010 actual property tax bills by the end of December 2009. The fiscal year 2010 pertains to the period July 1, 2009 to June 30, 2010. The assessing date for fiscal year 2010 is January 1, 2009. For fiscal year 2010 each parcel of property must be assessed at the fair market value as of January 1, 2009. An owner, taxpayer or person who has an interest in the property in most cases has until February 1, 2010 to file an Application for Abatement with the local Board of Assessors. In most cases all property taxes must be paid timely by the due date in order to effectuate a valid appeal. The Assessors have 3 months to act upon the Application for Abatement. If the Assessors fail to act upon the Application it is deemed to be denied.

 

Updated September 2009

The Fiscal Year 2010 Tax Bills Will Be Sent Out Soon

The Massachusetts fiscal year 2010 commenced on July 1, 2009. Most but not all jurisdictions in Massachusetts will be sending out their fiscal year 2010 property tax bills at the end of this year. Those tax bills are for the assessment date of January 1, 2009. Most but not all Applications for Abatement must be filed by February 1, 2010. The assessors have three (3) months from the date of filing the Application to act upon it. If the assessors fail to act upon the Application within the three (3) month period the applicant may file a petition with the state Appellate Tax Board within an additional three (3) month period. If the assessors act upon the Application for Abatement within the initial three (3) month period and the applicant is still aggrieved he may file a petition with the Appellate Tax Board within three (3) months of the assessors' action.

 

Updated June 2009

In Massachusetts Filing Fees Can Be Expensive

Many of the taxpayers that filed fiscal year 2009 applications for abatement have had their applications denied by the local assessors. If a taxpayer wants to continue with his appeal he must file a petition with the Massachusetts Appellate Tax Board. The fee charged to file such a petition can be expensive. The filing fees are ad valorem at a rate of 10 cents per thousand of assessed valuation. Thus a property assessed for $10,000,000 has a filing fee of $1,000; a property assessed for $20,000,000 has a filing fee of $2,000, and so on. The maximum filing fee is $5,000. This fee is only for the fiscal year appealed. If the matter is not resolved it is incumbent upon the taxpayer to file again for the subsequent fiscal year and pay an additional filing fee. No other State in the country has such a filing fee structure for tax appeals.

 

Updated December 2008

In Massachusetts Now Is The Time To File

Most jurisdictions in Massachusetts will be sending out their actual fiscal year 2009 property tax bills at the end of December. In most jurisdictions the deadline for filing an application for abatement is February 1, 2009. The fiscal year 2009 has an assessing date of January 1, 2008. The issue in most tax appeal cases is what the fair market value of the subject property was on January 1, 2008. In some cases the palpable evidence of a decline in market value as of January 1, 2008 was not available until after January 1, 2008. For example sales of comparable properties during calendar years 2008 & 2009 or leases signed during calendar years 2008 & 2009 may be helpful in showing the true market value of the subject property on January 1, 2008.

Now may be the time to file for an abatement of property taxes.

 

Updated September 2008

Assessors Have The Right To Inspect Your Property

The Massachusetts Appeals Court recently held that in the case of Stanley P. Roketenetz, Jr. v. Board of Assessors of Lynnfield 72 Mass. App. Ct. 907 (2008) that the taxpayer must allow the assessors to physically inspect a property under an appeal for abatement of property tax. Failure to allow such access gives the Appellate Tax Board the authority to dismiss the taxpayer's appeal. The taxpayer argued that this inspection violated the Fourth Amendment to the United States Constitution, which prohibits unreasonable searches. The Court held that the Fourth Amendment did not apply to the discovery process of a property tax appeal unless there was evidence that the tax assessment was a subterfuge to gain access to the property. The lesson here is that if the assessors request it, you must provide access to the property under appeal. If you refuse to allow the assessors to inspect the property, your appeal will probably be dismissed.

 

Updated June 2008

The Fiscal Year 2009 Commences in Massachusetts

The Massachusetts fiscal year 2009 commences on July 1, 2008. The fiscal year 2009 property tax bills have an assessing date of January 1, 2008. Most but not all communities send out there fiscal year 2009 property tax bills on a quarterly basis. The tax bills are generally due on August 1, 2008, November 1, 2008, February 1, 2009 and May 1, 2009. It is the tax bill that is due on February 1, 2009 that Applications for Abatements are filed upon. These applications must be filed with the assessors by February 1, 2009. In most cases the taxes must be paid in a timely manner in order to effectuate a valid appeal. If an Application for Abatement is denied the taxpayer may file a petition with the State Appellate Tax Board. The Appellate Tax Board is a quasi-judicial board. At that level the taxpayer will be afforded a hearing.

 

Updated March 2008

In Massachusetts Filing Fees Can Be Expensive

In Massachusetts now is the time when many Applications for Abatement filed with local Board of Assessors have been denied. If a taxpayer wished to continue with his claim for a tax abatement he must a petition. That petition is almost always to the Commonwealth of Massachusetts Appellate Tax Board. The Appellate Tax Board is the final arbiter of fact. Only appeals regarding questions of law may be taken beyond the Appellate Tax Board. The Appellate Tax Board charges an unusual filing fee in that it is ad valorem. This meaning that the filing fee is dependent on the assessed value. This is Currently 10 cents per thousand of assessed value with a maximum filing fee of $5,000,000. In Massachusetts a separate petition must be filed for each fiscal year. It is not uncommon for two or three years to pass before the matter is resolved. This can be an expensive proposition.

 

Updated December 2007

Massachusetts Fiscal Year 2008 Property Tax Bills Are Being Sent

Most jurisdictions in Massachusetts will be sending out their fiscal year 2008 property tax bills at the end of December. Most jurisdictions will have either revalued or "trended" their values. In either case the tax bill should be reviewed to see if the assessment reflects the fair market value of the property as of January 1, 2007. In order to preserve the right of appeal this bill must generally be paid by February 1, 2008. The deadline for filing an application for abatement with the local assessors is also generally February 1, 2008. The assessors have three months from that date of filing the application to act on it. If the assessors fail to act within three months of the filing, the application is deemed to be denied. An appeal from a denial may be taken to the State Appellate Tax Board within three months of the date of the denial.

 

Updated September 2007

In Massachusetts Obtaining Relief From Disproportionate Assessing Is A Formidable Task

The recent Massachusetts Appellate Tax Board case of William Welsh Graham et al v. Board of Assessors of the Town of West Tisbury 2007 Mass. Tax Lexis 23, shows how difficult it is to obtain a property tax abatement based upon an allegation disproportionate assessment. Here the taxpayers' property was located on the island of Martha's Vineyard. The taxpayers alleged that their property was assessed disproportionately. The Appellate Tax Board ruled that the taxpayers failed to support their claim or disproportionate assessment. The Board stated "...the appellant's failed to establish that the assessors undertook an intentional policy or scheme of valuing properties, ......... at a lower percentage of fair cash value than the appellant's properties" (emphasis supplied).

The Board further stated, "Where assessments, even if wrong, are ?consistent with honest mistake or oversight on the part of the assessors' as opposed to a ?deliberate scheme of disproportionate assessment' no relief for disproportionate assessment is appropriate."