How to File for Abatements

How to File for Abatements
Massachusetts General Law allows the taxpayer a way through which they can contest an assessed value on a specific parcel. The following is a description of the abatement process, when to file, and what to do to insure that an abatement may be more likely to be granted.

Why Should a Taxpayer File?
Acceptable reasons are

  • inaccurately measured improvements (outside measurements)
  • additions that do not exist
  • amenities such as pool and sheds that had been removed prior to January 1
  • lack of equitability in valuation

Unacceptable reasons are

  • not being pleased with the value estimate or increase
  • just saying overvaluation with no back up information
  • displeasure with the tax rate
  • an inability to afford paying taxes

Filing Date Deadline for Abatements
Abatement requests are due / postmarked by Wednesday, February 1, 2023. All abatements filed after this date will be denied without consideration.

Valuation
Most people feel that it is the change in value that affects their taxes, when in fact it is not the case. In actuality, values on homes could double, triple or quadruple. If the overall budget for the community stayed the same, the individual taxes on each property would stay the same. It is the town’s need to raise money to provide services to the taxpayers that establishes the burden on the entire town. The estimated market value on the individual homes allocates burden to the individual taxpayer.

The assessed value of a property rests strongly on two principles, that of market value and equitability.  Market value is defined as the value that a property would most likely bring in an open market, with proper exposure, a buyer and seller who are knowledgeable and operating in their own best interest, and with considerations made that are terms if cash or its equivalent. Market value is estimated by three approaches to value; sales comparison, cost and income. The sales comparison approach relies on the sales of similar properties and relates best to the valuation of residential homes and single unit commercial properties that would normally be owner occupied. The income approach relies on the conversion of market rent to an indication of value. This approach to value works best on multi-tenanted commercial and residential buildings such as 6+ unit apartment buildings and larger office and retail buildings. The cost approach relies on the anticipated cost to build, less allocations for physical depreciation and functional, economic obsolescence. It is most accurate when the improvements to the parcel being valued are new.  Equitability is also a strong component of municipal valuation or assessing. In order to be taxed fairly, homes must be valued in a similar fashion. For example, it would be inappropriate for a town to value a six room ranch on a half acre of land at $350,000 and value a similar ranch next door for $550,000. Such disparities fly in the face of reason and tend to make taxpayers extremely upset.