The Board of Assessors began calendar year 2007 by processing the abatement applications generated from the Fiscal Year 2007 Interim Year Adjustment. The rest of the year was devoted to the Fiscal Year 2008 revaluation. The Board met almost every week for most of the year.
The Fiscal Year 2007 Interim Year Adjustment resulted in 132 abatement applications, of which about 53% were granted in whole or in part.
There are two major objectives in a Revaluation Year. One is to update the various coefficients used in the mass appraisal calculation of assessed value for properties in order to adjust them to their market value, as indicated by the sales data. The second is to undergo a year-long examination of our valuation processes by the Department of Revenue (DOR). At the end of the revaluation process the dor must certify the values in order for the tax rate to be set.
State law requires that the median Assessment-To-Sales Ratios (ASR) for the various categories fall within certain parameters: the overall median must be within plus or minus ten percent of 100% full and fair market value; and the variances from the median for the subcategories within the sales stratifications must be within plus or minus five percent. The overall median Assessment-To-Sales Ratio is 0.96 for Fiscal 2008. The dor requires that property be valued in two sections, building and land. Land valuations must also be supported by the sales. In the absence of vacant land sales, a technique called “Land Residual” analysis is used. This analysis subtracts the building value from the sales price, and then the assessed land value is divided by the residual amount
for the land residual asr. Again, the town-wide median must meet parameters similar to the total value asr requirements. The overall asr for the land residuals is 0.93 for Fiscal 2008. For FY08 the Town’s average single-family residence is valued at $944,437 and the median house is valued at $735,650.
In December we were told by the dor that they could not certify our values since they saw inconclusive support for the excess land rate. The DOR was applying new analysis techniques that had not been previously explained to the Town to analyze the land. Without certification, the tax rate could not be set, so preliminary third quarter bills were issued. After some minor adjustments, by mid-January Concord received notice that the values were certified, and the tax rate was set at the beginning of February, 2008. Fourth quarter bills will be mailed early in order to provide taxpayers with as much notice of the new rate as possible.
New Growth
The value of new construction increases the levy limit. New growth continued at the strong rate of 2.3 percent of the Town’s valuation for FY2008 due not only to the continuing pace for new construction, additions and remodeling projects, but also to the completion of two large complexes, Newbury Commons on the New England Deaconess campus and Concord Commons, a 59 unit condo complex in West Concord.
Classification Hearing
The Board of Assessors recommended to the Board of Selectmen that for FY2008 they vote: to adopt a uniform tax rate, not to grant an Open Space Discount, not to adopt a Residential Exemption, and not to adopt a Small Commercial Exemption. Since FY1998 the Board of Selectmen has adopted a uniform rate for Residential, Commercial, Industrial, and Personal Property classes of property. A public hearing was held on December 3, 2007, at which the Selectmen discussed each of the Board of Assessors’ recommendations. The hearing was continued until a time certain after receiving preliminary certification from the dor.
Statutory Exemptions
Tax exemptions are available by State statute to qualified homeowners who are either disabled veterans, elderly (subject to certain income and asset limits), or blind. The State reimburses the Town for certain specified amounts. In recent years, the Town has voted to accept optional State law to double the value of the exemptions, with the additional cost being borne fully by the Town. Exemptions granted for FY07 and the related State reimbursements are shown in the following table.
Agricultural, Recreational and Forest Land
State law provides for tax relief designed to encourage the continuation of certain types of land use. These classifications carry strict application requirements, State-set valuation methods, and statutory penalties and procedural requirements when land is withdrawn from such tax-favored status. The three categories of Chapter land are:
Chapter 61 – Forest Land – refers to land of at least 10 contiguous acres held in a wooded state and subject to a management plan certified by the State Forester. Such land is valued at no more than 10% of market value.
Chapter 61A – Agricultural Land – refers to land of at least 5 acres that is used to raise agricultural products to be sold on the market. The State establishes specific acreage valuations depending of the product to be applied to such land.
Chapter 61B – Recreational Land – refers to land of at least 5 acres that is retained in substantially a natural, wild or landscaped condition designed to preserve wildlife and natural resources.
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