NEWSLETTER MAAO. MAAO Calendar MAAO C A L E N D A R PRESIDENT S MESSAGE IMPORTANT NOTICE ABOUT RECERTIFICATION REQUIREMENTS

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1 NEWSLETTER MAAO Volume XXXVII, Number 5 August 2007 Published by the Massachusetts Association of Assessing Officers PRESIDENT S MESSAGE IMPORTANT NOTICE ABOUT RECERTIFICATION REQUIREMENTS Donna L Putt, Norfolk T he Professional Admissions Committee, last year, voted to add a new requirement to the recertification process As of October 1, 2007, all designees, MAA, RMA, CMA, must attend either the National USPAP Update (7 hour course) or the MAAO Workshop, Introduction to USPAP for Assessors (5 hours) Either of these courses must be included within the 45 hours of continuing education that are required within each three year recertification period If anyone s certification is due prior to October 1, 2007, they will not be obligated to include the course for this recertification period but it will be required within the next three year cycle and for each three year cycle thereafter Any questions should be directed to Robert Ellia, MAA, Education Director, MAAO R emember the lyrics roll out those lazy, hazy days of summer? They are here! It is time to kick back, catch fireflies, and find some shade to sip a cool glass of lemonade Sounds like the perfect prescription for most everyone; but not for your Executive Board and the Bylaw Committee We are in the midst of reviewing how our association operates and how to make it run more efficiently The Bylaw Committee is reviewing everything, including our fiscal year, which presently does not coincide with your municipal calendar; as well as the appointment schedule for positions that are made annually by the Executive Board and much more Let me discuss just a few of these areas that are being evaluated, and how they will affect our operation, as these changes will be significant If the proposed bylaws are accepted by the membership in November, there will be many benefits for both you as members and the Association We will be sending out our dues notices to coincide with your fiscal year and not that of the Association; the MAAO fiscal year now starts on October 1 and ends September 30 This disparity has caused much confusion to you, the members When we bill you on February 1, as we are mandated according to our bylaws, we are billing you in the middle of the MAAO fiscal year; your dues must be paid by June 15, according to our bylaws, in order for you to be eligible to vote in our election that starts on September 1 If you have not paid dues by June 15th, you are ineligible to vote and will not receive a ballot The change in the fiscal year will further prompt a ripple effect in that it may be necessary to hold the annual meeting at the Cape Conference That is being considered This will be a welcome change as we have a very good attendance at this conference and therefore a greater attendance at the Annual Meeting will make for a stronger Association Also under review will be the establishment of a new timeline for the election of Executive Board members, a consolidation of the dates of appointments for the Secretary, the Treasurer, the Lobbyist, and the Education Director that are made by the Executive Board Presently, these appointments happen at differ- MAAO C A L E N D A R MAAO Calendar IAAO Annual Conference Atlanta, GA September 9 12, 2007 MAAO Clerks Meeting Holiday Inn, Boxboro September 12, 2007 MAAO Clerks Meeting The Depot, Northampton September 26, 2007 MAAO Fall Conference Williams Inn, Williamstown October 9 11, 2007 MAAO Clerks Meeting Venus DiMilo, Swansea October 24, 2007 MAAO Annual Meeting TBA November 8, 2007 Continued on page 10 1

2 OFFICERS President Donna L Putt, MAA, Norfolk President-Elect Michael P Flynn, MAA, Framingham Secretary/Treasurer Marion A Fantucchio, MAA, Quincy Immediate Past-President Edward L Childs, MAA, Sandwich EXECUTIVE BOARD James Judge, MAA, Kingston Henry Fournier, MAA, Essex Molly K Reed, MAA, Wayland Hannelore Simonds, MAA, Millis Kenneth Stein, CAE, Chelsea William Chenard, MAA, Newton EDITOR Richard E Ball, MAA 32 Dellwood Road Worcester, MA rballbaseball@aolcom Town of Ashland: x632 COUNTY CONTACT PERSON Barnstable - Scott Fahle, Dennis Berkshire - Ruth A Gillette, Sheffield Bristol - Jeanne C Reedy, Fairhaven Dukes - Pamela Thors, West Tisbury Essex - Sheila Hambleton, Nahant Franklin - Jean E Dwight, Buckland Hampden - Kelli Robbins, Monson Hampshire - Joan C Sarafin, Northampton Norfolk-Suffolk - Debbie Robbins, Norfolk So Middlesex - Molly Reed, Wayland No Middlesex - Susan Lemay, Lowell Plymouth - Mary E Quill, Pembroke Worcester - Priscilla Hogan, Milford Any reproduction of the contents of this newsletter must include credit to the Massachusetts Association of Assessing Officers newsletter MAAO NEWSLETTER ADVERTISING RATES Half page $200 Quarter Page $100 Employment Ads $50 NEXT ISSUE: OCTOBER, 2007 Deadline for material: August 25, 2007 July 18, 2007 Dear Tax Collector/Assessor, Earlier this year, it came to our attention that many higher value vehicles were not valued and billed for excise tax Over the past four months the Registry of Motor Vehicles has undertaken a labor intensive project to apply values to all model 2006 and earlier vehicles that are eligible for excise tax billing The results of this effort are reflected in the most recent excise tax bill runs on July 14th and the details of this effort are outlined in the attached memorandum The totals for the bill runs are: Bill Run Bill Run Total Bills 33,837 Total Bills 295,812 Total Tax Billings $12,968,476 Total Tax Billings $47,751,222 As noted in the attached memorandum, the Registry has been aggressive in our application of valuations and we are expecting a higher than average number of customers questioning those valuations Since most of these vehicles are receiving bills in the bill run, it is important that we address any errors as expeditiously as possible to insure they are not billed for 2007 at an incorrect valuation in the next tax run on September 7th A direct line is available for assessor s only at ; we ask that you reserve this number for your use alone Customers can contact us directly at Our goal with valuation issues is to resolve them as quickly as possible; it will be of significant assistance if customers have the actual bill of sale for the vehicle in question complete with a vehicle description and specific model number Thank you in advance for your cooperation and be assured that, as also outlined in the memo, the RMV is undertaking other steps to insure the valuation issues are addressed promptly Sincerely, Anne L Collins Registrar MAAO NEWSLETTER SCHEDULE Deadline to submit Approximate Issue articles/county news mailing 1 March January 25 Middle of March 2 May March 25 Middle of May 3 July May 25 Middle of July 4 August June 25 Middle of August 5 October August 25 Third week of October 6 December October 25 Middle of December 2

3 EXECUTIVE SUMMARY OF RMV ACTIONS ON EXCISE TAX EVALUATIONS Overview After a recent evaluation of our computerized data system, the Registry of Motor Vehicles determined that some 124,000 rare and unusual vehicles, including highend luxury cars, motor homes, trailers, campers, buses, custom-built cars and others did not receive values This omission meant that local cities and town did not receive annual excise tax bills for these vehicles leading to a loss of revenue Vehicles with no recorded value in ALARS are as follows: 50,000 from model year ,000 from model year ,000 from model year ,000 for each model year from and 10,000 from In addition, the RMV also determined that between 8-12,000 vehicles did not receive excise tax bills for Excise Tax year 2005 because of a lack of valuations The evaluation oversight resulted from a number of inherent problems in the process The RMV calculates the value of each vehicle based on the MSRP and uses a statutory depreciation formula to determine the tax amount Many high-end vehicles or trailers do not have MSRPs and the RMV s computer software does not include every vehicle type, so a manual process is required to ensure 100 percent capture of vehicle valuations This is a very labor intensive undertaking in a division that has shrunk from 32 full-time employees in 2002 to 11 today Impact Massachusetts collects approximately $710 million in excise tax revenue each year The affected vehicles comprise two percent of all vehicles registered in the Commonwealth The revenue loss is less than one percent of all excise taxes collected each year The un-valued vehicles for model year 2006 represent 28% of the total vehicles (166,000) However, there were a disproportionate number of trailers included, so the actual percentage of un-valued vehicles was roughly 6% of the total 2006 vehicles Ninety-eight percent of all vehicles registered in the state are not affected by this Owners of motor homes, luxury vehicles, trailers, campers, buses, hotel shuttles, some heavy-duty construction truck, high-end luxury vehicles and certain antique vehicles can expect to receive 2006 excise tax bills in August and 2007 excise tax bills in October MAAO AWARDS WILSON AWARD The Massachusetts Association of Assessing Officers, through its Executive Board, voted to establish the Wilson Award, which is funded by a generous donation sent to the Association by the late Edward C Wilson, former Associate Tax Commissioner and Belmont Assessor, in memory of his late wife This annual award is presented to the assessor who has made the most outstanding contribution to the assessing profession and who has dedicated him/herself to the field of assessing and the community and state he/she represents Massachusetts Assessors are asked to vote for the candidate that they feel best exemplifies our profession Any regular member of the Association may be nominated We ask that you indicate your preference below, and enclose a statement as to the reasons for this nomination Please mail the nominations to: MAAO Wilson Award c/o Molly Reed Assessors Office, Town Hall 41 Cochituate Rd, Wayland, MA I would like to nominate NAME of for the Annual COMMUNITY Wilson Award, to be presented at the next Annual Meeting of this Association The reasons for this nomination are attached SIGNED COMMUNITY PAST PRESIDENT S AWARD This award is presented to the assessor who has made outstanding contributions to the Massachusetts Association of Assessing Officers and the goals that the Association espouses This year s selection will be presented a plaque at the Annual Meeting Please complete the form below and return to: MAAO Past President s Award c/o Molly Reed Assessors Office, Town Hall Wayland, MA I would like to nominate NAME of for the Annual COMMUNITY Past President s Award, to be presented at the next Annual Meeting of this Association The reasons for this nomination are attached SIGNED COMMUNITY Continued on page 7 3

4 ARTHUR K HOLMES SCHOLARSHIP The Massachusetts Association of Assessing Officers, through its Executive Board, voted to establish a scholarship in the name of Arthur Holmes which will be awarded annually to an MAAO regular member The amount of the scholarship will be $500 and will be awarded at the MAAO Annual Meeting in November The application deadline is October 15 and should state the intended use of the scholarship The recipient will be chosen on or before October 31 by a sub-committee including the Education Director, the Education Committee Chairperson, and the Professional Admissions Committee Chairperson A runner-up candidate will also be selected Both recipient and runner-up must be MAAO regular members Please complete the form below and return to: MAAO Arthur Holmes Scholarship, c/o Donna Putt, Assessor s Office, Town Hall, 1 Liberty Lane, Norfolk, MA ARTHUR K HOLMES SCHOLARSHIP APPLICATION Name: Title: Town: Address: Telephone ( ) GENERAL INFORMATION Education budget funded by your city/town this fiscal year Parcel Count Staff Full Time Part Time Do you have an MAAO designation? Yes: CMA RMA MAA No Please list any other professional designations: If you have no designation please check courses you have successfully completed: DOR Course 101 (Assessment, etc) MAAO 2 (Cost Approach to Value) MAAO Course (Introduction to Assessing) MAAO 3 (Income Approach) MAAO Course 200 (Principles of Assessing) MAAO 4 (Narrative Appraisal) MAAO Course 1 (Comparable Sales) OTHER Course (MAAO/IAAO, etc) STATEMENT OF SCHOLARSHIP REQUEST: Signature: 4

5 Knowledge Experience Integrity PUBLIC INFORMATION AWARD The designated difference in real estate analysis and consulting The Public Information Committee is looking for nominations for the Public Information Award This award is presented to the assessing jurisdiction who designed, developed, and implemented an informational program for the taxpayer This program should inform the taxpayer of the assessment process, exemptions, and the abatement process The information provided to the taxpayer could be in the form of a video or brochures outlining the valuation process, requirements for exemptions, and the abatement process and appeal rights The winner will be selected by the members of the Public Information Committee The award will be presented to the winner at the annual MAAO meeting held in November Please send in your entry and be recognized for your efforts in reaching the public and educating them on the valuation process and the role of the assessor in their community Deadline for entry is October 15, 2007 Send your entries or questions to: Public Information Award, c/o Donna Putt, Assessors Office, Town Hall, 1 Liberty Lane, Norfolk, MA Assessors and property owners alike can always agree on one thing: the key to fair taxation is an accurate assessment That s why they can also agree on something else: the absolute necessity of accurate, reliable real estate appraisal and consulting services for ad valorum tax purposes For that, you can always rely on an Appraisal Institute designated professional The MAI, SRPA or SRA designation represents advanced knowledge It stands for advanced continuing education And always means uncompromising integrity, backed by a strict code of conduct To find a designated appraiser or to learn more about the Appraisal Institute, please contact us at: Massachusetts Chapter attn: Lianne Andreucci, Chapter Secretary 51 Pleasant St, PMB 164 Malden, MA T F gbchapai@ixnetcomcom Professionals Providing Real Estate Solutions wwwma-appraisalinstituteorg MAI SRPA SRA The designated difference behind a name you can trust AssessPro 41 CAMA Software offering: Full valuation using all valuation approaches including Marshall & Swift cost and MRA Embedded GIS interface Fully integrated, graphical sketching that is the best in the industry Powerful reporting tools Personal Property Internet public access solutions SQL and ODBC database connectivity Fully staffed toll free customer support department Over 125 clients in 11 states Serving the Assessor for over 15 years 5

6 MASSACHUSETTS ASSOCIATION OF ASSESSING OFFICERS FALL CONFERENCE October 9, 2007 October 11, 2007 Williams Inn, Williamstown, MA Registration: Tuesday, October 9, 2007 Tuesday Oct 9, 10:00 AM EDUCATION PROGRAM 1:00 pm 4:00 pm Appraising of Residential Properties in a declining market 3 recertification credits All taxpayers know that their values are plummeting At least that is what they are hearing in the news! How do you determine if they actually are? And how do you reflect these declining values and satisfy those taxpayers? Speaker Richard Simmonds, RA, SRA Belmont Wednesday, October 10, :00 am Noon Understanding and Interpreting leases and the Development of a 3 recertification credits Capitalization Rate Short term, Long term, NNN, Ground, they are all types of leases How do they work? How do you know what the lease says? The Cap Rate? It is always a bone of contention You should know how do develop it or at least understand what the tax rep is talking about during any discussion of it Speaker Mike Tarello, Vision Appraisal 12:00 Noon 1:00 PM Lunch 1:00 pm 4:00 pm Getting the most out of your CAMA Software provider 3 recertification credits What can your vendor do for? What can you do for your vendor? Do you work closely with your vendor in order to get what you need and also to determine what you may not need? You don t want to spend dollars unnecessarily Speakers Mike Tarello, Vision Appraisal Dick Swadel, Patriot Properties Kathy Peirce MAA, Holliston, CSC Ed Childs, Princ Assessor, Sandwich EVENING WORKSHOP 6:00 pm 9:00 pm The Three Are Now One The New Law on the Chapter Lands How will it affect us? 3 recertification credits How Do We Work With It? When Are Applications To Be Filed? New legislation has changed a number of procedures in the administration of Chapter Lands Get a detailed explanation of the changes and what they mean to you Speaker Linda Swadel MAA, Westborough Thursday, October 11, :30 am 11:30 am Personal Property (Data Collection, Valuation and Modeling) 2 recertification credits Personal Property always seems to be the poor cousin of our responsibilities The utilities and telecom business generates the most value but what about the other business account? We have to know what they have and what its worth John will aid us in the procedures of accomplishing that task Speaker John Wieliczki, Town of Canton 6

7 EXECUTIVE SUMMARY Continued from page 3 Short-Term Solutions The RMV reassigned full-time staff to manually enter the correct valuations for the affected vehicles for model years of 2006 or less All of the un-valued vehicles have been included in the July 13th tax runs of either the 10th commitment of 2006 or the 4th commitment of 2007 Vehicles/owners cannot be billed for both 2006 and 2007 in the same tax run For example: if a person owns a 2006 Winnebago that was just valued, it will be billed for 2006 in the July 13th run and then billed for 2007 in the September 7th tax run We estimate that manually correcting valuations in the July 13th run has resulted in $17 million in additional revenue to cities and towns RMV staff is currently identifying the 8-12,000 vehicles that were not valued and billed in excise tax year 2005 Once these evaluations have been determined, we will create a special bill run later this summer At this point in time, we are targeting a run in mid-august NOTE: If you discover any valuation errors on the 2006 tax run, please submit to the RMV as soon as possible so we can correct the 2007 tax run registration process, the RMV is currently engaged in reviewing our current body style list to eliminate the generic descriptions, ie truck, cab, and chassis; determining the practicality of requiring, especially for trucks, busses, auto-homes, and other composite vehicles, the actual sales price on the RMV-1 form and incorporating the billing for the so-called Section 5 plates into the normal excise tax process Finally, we did seek and receive guidance from the Department of Revenue in considering our response to the evaluation issue If a vehicle was billed at an incorrect valuation and the bill paid, then, according to DOR, we cannot re-bill for the correct and presumably higher valuation But if no bill was sent out for the vehicle, even if the tax year is closed as in those missed in 2005, then we can bill Correction Process If a customer has a valuation issue and is requesting a valuation adjustment, you can contact us directly at , a number that is reserved for the assessors Alternatively, you can direct the customer to contact us at Regardless of the contact method, it is important to keep in mind that we have done the best we can to value the vehicle with the information we have available Thus, it is important to ask the customer for the specific vehicle description For example, what kind of truck is it, dump truck, tank truck, etc? Or, what is the specific model number of the auto home? For 2005 and 2006 model year vehicles, especially those where standard value guides do not exist (buses, school buses, ambulances, construction equipment, etc) we suggest asking the customer to produce the actual invoice for the vehicle even if they bought it used Our goal with valuation issues is to resolve these issues as quickly as possible so you can issue a new bill and we can update our records prior to the next tax run Long-Term Solutions The RMV is investigating retooling its registration process so that the MSRP for rare vehicles, as well as more popular vehicles are captured Capturing the MSRP value on rare vehicles will establish a baseline value for the vehicles and make establishing the excise tax much easier in the future The RMV is also looking to retool its current software system to include the revisions, as well as registration forms for new vehicles To determine what revisions will be needed for the 7

8 APPELLATE TAX BOARD UPDATE CHARITABLE EXEMPTIONS Two cases decided during the year offered contrasting fact patterns and contrasting ATB results for elderly residential facilities operated by non-profit organizations The almost perfect case for an exemption came forward in William B Rice Eventide Home, Inc v Quincy Assessors (June 30) Eventide was a nonprofit, tax exempt organization which operated a 60-bed skilled nursing facility The ATB was persuaded by testimony that there were no selection requirements, financial or otherwise, that limited a potential resident s admission, so long as Eventide could meet their personal and medical needs This was in contrast with the fees and charges at two facilities which were found to be fully taxable in recent appellate court decisions: Western Mass Life Care v Springfield Assessors, 434 Mass 96 (2001), and Jewish Geriatric Services v Longmeadow Assessors, 61 Mass App Ct 73 (2004) At Eventide, financial information was requested from the applicants but only for purposes of setting Eventide s budget, not to screen and eliminate potential residents About two-thirds of Eventide s residents were Medicaid recipients and Eventide needed to subsidize these residents by as much as $73 per day The ATB concluded that Eventide had proved that its skilled nursing facilities were available to a sufficiently large segment of the elderly population and that it provided a relief of a burden to government to care for the elderly The case is now pending before the Appeals Court David J Martel, Esquire, Editor Rosemary Crowley, Esquire, Associate Editor Doherty, Wallace, Pillsbury and Murphy, P C One Monarch Place, Springfield, Massachusetts Telephone: (413) dmartel@dwpmcom 2007 Doherty, Wallace, Pillsbury and Murphy, PC All Rights Reserved aimed at providing assessors with the information which they need during the valuation process An additional law, Chapter 59, Section 61A, is aimed at providing assessors with the valuation information which they need to deal with an abatement application In addition, Section 61A also requires an owner to exhibit the property to the assessors The consequences of an owner s refusal to let the assessors in the door came through loud and clear in Giurleo v Raynham Assessors (June 27) In this case, the owner filed an abatement application and allowed one of the assessors to perform an exterior-only inspection When the abatement application was denied, the owner asked the assessors to reconsider, but again denied a request for an interior inspection The owner claimed he could get by simply through production of a sworn statement, photographs and a viewing of the dwelling through open doors as substitutes for the interior entry inspection The assessors denied the owner s request for reconsideration and he then appealed to the ATB, which ordered the owner to allow the inspection within 30 days Again, the owner refused and ultimately the ATB allowed the assessors motion to dismiss for failure to comply with the ATB s order The ATB also drew support for its conclusion from Chapter 58A, Section 8A, which governs discovery procedure at the ATB This section requires an appellant to allow the assessors to enter upon such real estate and inspect such real estate Failure of an Continued on page 11 The facts in Eventide contrasted with the facts in the other 2006 exemption case, John Bertram House of Swampscott, Inc v Swampscott Assessors (May 4) The operator of this facility was also not-for-profit and tax exempt, but admission called for monthly service fees from about $3,300 to $5,200 and entrance fees of about $6,000 to $10,000 The ATB particularly took note that the living units all had locks on the doors and that staff people had limited rights to enter the units The ATB concluded that the residents, not the non-profit corporation itself, had the right to occupy the premises Although Bertram House did set aside 20% of the 60 units for low- to moderate-income persons and offered minimal financial assistance to residents, these features were insufficient to demonstrate the affordability of the facility for a broad spectrum of the elderly population The exemption was therefore denied PAYING THE PRICE A series of cases late in 2005 and four more early in 2006 (all involving properties in Boston) showed the consequences of a property owner s failure to comply with discovery requests from assessors pursuant to General Laws Chapter 59, Section 38D This law is 8

9 SUMMER CONFERENCE, RED JACKET INN, JUNE 2007 PHOTOS BY NUNZI DIVITO & RICH BALL Have you seen our Web site lately? MAAOORG Resources & Forms Calendar Announcements Employment Oppertunities 9

10 PRESIDENT S MESSAGE Continued from page 1 ent months during our fiscal year This will make more sense and make the process more efficient We are a very large, successful, and complex organization We no longer are your Father s Association Remember the days of paper notices for all conferences, meetings, and school? It has been a while since we did that This year will be the first time that the clerks will register online for their meetings held this fall Remember the days of signing in and signing out after a session? You now carry a member ID that you scan to confirm your attendance Remember the days when we did not need to recertify your designation every three years We embraced the idea of professionalism a long time ago and we ran with it Now we need more change and not just for the sake of change We need change in order to continue the success that we have achieved, enhance it and make it grow even more We must become more efficient, and not rely solely on our dedicated volunteers to keep this organization functioning; we must plan now for the future to guarantee the continued success of this association Making these and other changes will be a step in the right direction It is time that the MAAO be run as the business that it is, not as an organization dependant upon the good will and dedication of volunteers Volunteers will remain as a vital and an integral key in our success, but as we grow we need more day-to-day management I will expand on our plans and report to you in the next Newsletter about several other issues that we are presently reviewing We continue to try to improve the services and the stature of the MAAO and to instill pride in our membership for being associated with a professional and productive Association I would also like to comment on the Summer Conference which has come to another successful conclusion! Many thanks to the Education Committee, especially the sub-committee who organized the programs, Linda Swadel, MAA, Westborough; Donna McCabe, ASA, MAA, Wellesley; and Paul Matheson, MAA, Westport for their hard work The programs were outstanding as witnessed by a packed house at each session I would also like to thank Jeanne Reedy, MAA, Fairhaven for her work in chairing the Silent Auction and most especially to all of you who so generously donated items to the auction and to those of you who successfully bid on those items and helped us to raise $1,862 to help us fund course re-writes We are all beneficiaries of your generosity I am so glad that it is a hazy, lazy summer So, continue to catch those fireflies and sip that lemonade THE 2007 APPELLATE TAX BOARD UPDATE A review and analysis of key 2006 real estate valuation decisions from the Appellate Tax Board is now available without charge from David J Martel, Esq DOHERTY, WALLACE, PILLSBURY AND MURPHY, PC Attorneys at Law One Monarch Place 19th Floor 1414 Main Street Springfield, MA PHONE: (413) FAX: (413) DMARTEL@DWPMCOM (No need to reply if you re already on the mailing list) 10

11 APPELLTE TAX BOARD UPDATE Continued from page 8 owner to do so provides the ATB with another basis for dismissing an appeal Mr Giurleo has taken the case to the Appeals Court NO GOOD DEED The celebrated Pinehills development in Plymouth was the setting for a group of nine cases which showed once again that the consideration recited in the deed is not the last word on value The case was Thorndike Properties of Massachusetts II, LLC v Plymouth Assessors (February 27) and involved nine lots in the Hawks Perch neighborhood at Pinehills This was one of several neighborhoods in the complex, each of which was assigned to a specific builder and each of which fit a different niche in terms of type, size and sale price of the eventual home In this case, the owner purchased the vacant lots for $75,000 each (the consideration recited in the deed) but there was an understanding that there would be additional back-end payments based on the ultimate sale prices of the homes which were built on the lots The assessors used a land sales analysis from other neighborhoods at Pinehills, such as Chipping Hills, to justify assessed values for the nine subject lots from about $212,000 to $295,000 The ATB faulted the assessors for failing to adjust for the size of the Chipping Hills lots which were two to three times larger than the lots in Hawks Perch Furthermore, the ATB concluded that the Chipping Hills neighborhood was more desirable than Hawks Perch because the houses there, under the rules for Pinehills, were considerably larger than those in Hawks Perch At the end of the day the ATB disregarded the $75,000 sales price recited in the deed, but also discounted the assessed valuation by about 15% for each lot SELDOM SEEN A rarely used statute and a rare 3 to 2 vote at the ATB were featured in W B & T Mortgage Company, Inc v Boston Assessors (June 7, 2006) The law in question was Chapter 59, Section 2C, which requires the use of sale price, rather than fair cash value, when assessing a previously-exempt property for the first time after a transfer of ownership brings the property back on the tax rolls The property in question was sold by the Roman Catholic Archdiocese of Boston to an abutter for $45 million on December 17, 1999 The property was no longer exempt and, under Section 2C, the property became subject to a pro rata tax based on its sale price for the remaining 197 days of fiscal year 2000 There were procedural complications arising out of a lat ing of the FY 2000 tax bill, but essentially the new owner argued that Section 2C s use of sale price, rather than fair cash value, resulted in its paying more than its fair share of property taxes, thereby violating the principle that all taxes be constitutionally proportional This principle demands that each taxpayer s share of a public expense be in the same proportion as his property bears to all taxable property used to defray the expense Application of this principle gave rise to the majority and dissenting opinions from the ATB The use of purchase price under Section 2C reflects the reality that property returning to the tax rolls has not been subject to the triennial valuation process for some period of time Section 2C spares the assessors the administrative burden of determining cash value outside the normal valuation schedule and therefore allows the use of purchase price as the basis for valuation The three-member majority concluded that Section 2C was not on its face unconstitutional because its application could lead to a proportionate tax in some circumstances The majority did allow, however, that in certain circumstances Section 2C could be unconstitutional as applied The majority concluded that there was insufficient evidence that Section 2C as applied was unconstitutional because the ATB lacked sufficient evidence of the property s fair cash value as of the sale date to compare against the sale price The two-member dissent first claimed that the tax should have been voided because the tax bill was not mailed by the end of the applicable fiscal year As for the requirement for proportional assessment, the dissenters reasoned that, regardless of when the property came back on the tax rolls, it should be valued like all other properties through fair cash value as of the January 1 preceding the fiscal year in question The Supreme Judicial Court has taken the case for direct appellate review NOT THAT OFTEN 2006 featured that rarest of situations where the ATB agreed with a property owner that a parcel of land was absolutely unbuildable and therefore essentially worthless The case was Kunz v Middleton Assessors (April 4) which dealt with a 933 acre vacant parcel, the only one of 14 lots in a subdivision which had not been sold by the Appellant developer Much smaller, two-acre lots in the subdivision had sold for prices ranging from $118,000 to $194,000 The lot in question was assessed for $126,400 As the ATB found, the subject lot was significantly impacted by wetlands and the upland portion, located to the rear of the lot, was essentially inaccessible from its frontage The owner was unsuccessful in obtaining a conservation commission order of conditions to build a 600 foot driveway from the street through the wetlands and was also unsuccessful in purchasing abutting land to use for access The ATB sided with owner s expert who concluded that the potential market for the lot was limited to abutters who might want to purchase the land as a buffer Using this methodology, the owner s expert concluded that $2,000 per acre was appropriate, resulting in a value of $19,000 for the locus, the value which was ultimately adopted by the ATB In the process, the ATB took the assessors to task for offering no evidence concerning the circumstances (such as sales to abutters) surrounding the sales which they attempted to use to support the assessed value The ATB also faulted the assessors for their failure to show Continued on page 15 11

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13 LEGAL MATTERS David J Martel and Rosemary Crowley, Esquires After 36 days of trial and a five-day field trip to view the seven contested properties, the Appellate Tax Board has issued its 87-page opinion in Graham, et al v West Tisbury Assessors which dealt with prime real estate on Martha s Vineyard valued at over $57 million The lesson of the case is that when a taxpayer challenges fair cash value, it s not enough to simply attack the assessors methodology; the taxpayer has to present his own valuation evidence In Graham, the properties constituted approximately 235 acres on the north shore of Martha s Vineyard in a pre-eminent neighborhood characterized by large estates in a rural setting As part of a revaluation program, the assessors initial valuation of the seven separate parcels totaled approximately $57 million During abatement negotiations, the owner documented wetlands which had not previously been accounted for, resulting in a $5 million reduction in value At the ATB, the appellants sought an additional $32 million decrease The appellants proceeded on three theories: (1) the town s revaluation process was flawed and produced unreliable assessed values; (2) the properties were overvalued; and (3) disproportionate assessment Ultimately, the ATB found that two of the properties were overvalued, one by $100,000 and another by $430,000 That s not a bad day at the office for the assessors, given the taxpayers ambitious goals As part of its mass appraisal methodology for the revaluation, the assessors found it necessary to identify a new neighborhood, Neighborhood 200, with a corresponding new neighborhood multiplier to reflect the high sales prices in the area The ATB found this action appropriate, given the need to account for high priced sales of the Ziff and Roberts properties within Neighborhood 200 The appellants alleged that the Ziff purchase should not be considered since the Ziff family was trying to accumulate properties to create a family compound and was willing to pay top dollar in the process As for the Roberts property, the appellants alleged that the assessors had changed the property record card from view to no view of the ocean so that the assessed value would better approximate the property s recent sales price and yet not undermine the basis for establishing Neighborhood 200 As for the Ziff property, the ATB did find that repeated purchases of property in the same neighborhood by Ziff-related parties might, at first glance, support the appellants contention At the same time, the ATB said there was no direct evidence that the Ziffs were actually trying to form a family compound or were Continued on page 15 REAL ESTATE RESEARCH CONSULTANTS, INC REVALUATION APPRAISAL SPECIALISTS FOR OVER 20 YEARS Personal Property Services Revaluation, featuring a computerized tracking of each item of personal property, resulting in the realization of considerable dollars of growth revenue for the community Free expert consultation to discuss cost-effective data conversion, data entry and data collection strategies Customized personal property software Real Property Services Full-service revaluation appraisal services, including commercial and industrial, data collection and interim year adjustments RRC is experienced on all revaluation software packages, including DOR CAMA 1538 Turnpike Street, North Andover, MA Tel: (978) brian@rrcppcom Fax: (978)

14 AEDUCATION COMMITTEE Hannelore Simonds, MAA, Millis Once again, as in past years, the summer conference proved to be a smashing success The weather cooperated to give us a very pleasant and educational environment The thrust of this year s conference focused on perhaps the most pressing conundrum in taxation to come along in some time the complex issue of wireless telephone valuation The presentation made at the summer conference was comprehensive and involved some of the brightest minds on the subject Additionally, for those who were unable to attend or just want to review, the Association has made all the excellent presentations available on line at MAAOorg In addition to telecommunications, the second most pressing area of concern for Assessors is triennial certification and the summer conference addressed certification issues with a prominent panel of experts from the DOR The education committee works hard on your behalf to bring the most up to date information as possible and this summer s conference was certainly a testimony to their hard work and judgment As I write this column, the 52nd Annual Assessors School is fast approaching and will be history as you read this article But, as I look over the program for the week, I am struck by the broad range and the complexity of the business we are in and the amount of knowledge it requires to perform our jobs well Looking ahead, the Association has planned its Fall Conference for October 9th through the 11th at The Williams Inn, Williamstown, MA Take a moment to review the programs being offered It is once again a timely and information focused event Finally, there are three Clerks Seminars Scheduled for September 12, 2007 in Boxborough; September 26, 2007 in Northhampton; and October 24, 2007 in Swansea These meetings are always popular and receive rave reviews from all in attendance Remember, as you need the most current and accurate information to do your job properly, so do your clerks, who are the backbone of your respective organizations In closing, I just want to thank my fellow Education Committee members for a job well done By first reading this article or pursuing the MAAO website, you get a view of just how much goes into providing you with the best training and education possible This is a group of dedicated professionals that I am proud to be affiliated with Bringing more value to the revaluation process Combining a seasoned professional staff with the most advanced revaluation technology, ACONE takes a collaborative approach to working with your municipality From comprehensive programs, including installation of our leading-edge CAMA software, to service a la carte, we are flexible in our engagements Everything is driven by your specific needs and expectationsto learn how we can bring more value to your revaluation process, call Rich Nagle at or toll free at CAMA, or rinagle@appraisalresourcecom An Appraisal Resource Company Appraisal Consultants of New England 62 Forge River Parkway, Raynham, MA P TF CAMA F wwwappraisalresourcecom 14

15 APPELLTE TAX BOARD UPDATE Continued from page 11 whether there were access limitations on those lots which the assessors treated as comparable CALL OFF THE VICTORY PARTY It s written that there s been many slip twixt the cup and the lip and this adage played out in Paul Cocchi v Ludlow Assessors (September 21) This was not a high-stakes appeal and the main attraction was 10 chainsaws valued for a total of $2,410 Mr Cocchi claimed that his status as a tree surgeon qualified him as a mechanic and that the chainsaws were therefore exempt under General Laws Chapter 59, Section 5, Clause 20 as the tools of his trade Initially, the presiding ATB Commissioner issued a single-member decision for the assessors Mr Cocchi then requested findings of fact and a report and upon further review and on his own motion the presiding Commissioner issued a revised decision for Mr Cocchi, concluding that the chainsaws were exempt The Commissioner ultimately concluded that a tree surgeon was an occupation which required skill, training and the ability to work with one s hands and with hand tools In support of this conclusion the Commissioner cited the American Heritage College Dictionary, Ballentine s Law Dictionary and even the 1914 edition of Bouvier s Law Dictionary where a mechanic was defined as any skilled worker with tools or one actually engaged with his own hands in constructive work Supported by those definitions, the Commissioner found that the tools of [Mr Cocchi s] trade included chainsaws [In the interest of full disclosure, your editor was the victim, on behalf of the Ludlow Assessors, of the Commissioner s change of heart] NICE TRY A new concept in property valuation had a short life as a result of the decision in June Shillman, Trustee v Weston Assessors (February 22) The owner s expert called the novel approach truly equitable assessed value The approach was ultimately truly rejected by the ATB The laboratory for this concept was three lots on Love Lane, on one of which was a 7,000 square foot mansion valued at about $39 million for 2002, $36 million for 2003 and $38 million for 2004 In his quest for truly equitable assessed value, the owner s expert worked his way through a data set which included 233 single family residences in Weston, a second data set with 30 properties selected from the first set in the general area of the subject and yet a third set which included 18 single family homes in the discrete area near the subject That exercise was the basis for the expert s claim that the subject was assessed at $539 per square foot of living space The expert then opined that the property should equitably be valued at $431 per square foot, resulting in an indicated value of about $31 Million The ATB was unimpressed with the expert s search for equity He failed to provide a basis for incremental adjustments for the next two years after establishing his opinion of value for 2002 and he failed to identify the features which characterized a mansion which was the centerpiece of his analysis Finally, the ATB concluded that a determination of truly equitable value assumes the presence of a truly inequitable value by the assessors Yet the ATB concluded that there was no evidence tending to show that any properties in Weston were being valued below their full and fair cash value, either intentionally or otherwise, for any of the years at issue The ATB upheld the assessors decision denying the abatement applications LEGAL MATTERS Continued from page 13 willing to pay more than fair cash value As for the Roberts property, the ATB found the assessors credibility was diminished by the card-adjustment episode The ATB did not conclude, however, that this inaccuracy impacted the overall reliability of the mass appraisal methodology Indeed, the appellants own expert testified that the creation of Neighborhood 200 was supported by subsequent sales in the neighborhood The appellants then moved from their attack on the assessors methodology to claims of overvaluation The assessors offered both a report and expert testimony on comparable sales that the ATB found compelling On the other hand, the appellants offered very little evidence and no expert analysis or even an opinion regarding fair cash value Instead, the appellants simply urged the ATB to lower the multiplier for Neighborhood 200 from 95 to 375 The ATB entirely rejected this proposal although it did grant modest abatements based on its own evaluation of the assessors comparable sales Finally, the ATB found that the appellants failed to offer a cogent, detailed, and organized presentation supporting their claim of disproportionate assessment Once again, the ATB stated that disproportionate assessment must be the result of an intentional scheme and not merely honest mistake or oversight on the part of the assessors In the Graham case, the ATB found no such deliberate program of valuing other properties at a lower percentage of fair cash value than the appellants properties Specifically, the ATB concluded that the appellants did not show that the assessment-tofair-cash-value ratios of the Graham properties were out of sync with those of other types or classes of properties If nothing else, the ATB decision shows once again that proof of disproportionate assessment is an elusive, if not impossible, objective David J Martel and Rosemary Crowley are with the firm of Doherty, Wallace, Pillsbury and Murphy, PC in Springfield Mr Martel s address is dmartel@dwpmcom and he welcomes comments on this column and suggestions for future topics 15

16 MAAO NEWSLETTER MASSACHUSETTS ASSOCIATION OF ASSESSING OFFICERS, INC PO Box 70, Shrewsbury, MA ADDRESS SERVICE REQUESTED NON-PROFIT ORG US POSTAGE PAID Boston, MA Permit No MASSACHUSETTS ASSOCIATION OF ASSESSING OFFICERS 2007 COMMITTEE APPOINTMENTS Legislative Committee Jim Judge, Kingston, Chairman Linda Swadel, Westborough, Vice Chair Rob Alford, Norfolk Peter Barney, New Bedford John Coderre, Deerfield Barry Cooperstein, Taunton Priscilla Hogan, Milford Laura McCarthy, Chicopee Cheryl A Pooler, East Bridgewater Jason Strebel, Barnstable Education Committee Maureen A O Connor, MAA, Pembroke, Chair Rena E Swezey, MAA, Groton, Vice-Chair Robert J Ellia, MAA, Shrewsbury, Education Director / David W Burgess, MAA, Amherst Pamela K Davis, MAA, Fall River Eric Josephson, MAA, Weston Paul T Keefe, MAA, Wareham Ron Keohan, MAA, Saugus Paul A Matheson, III, MAA, Barnstable Donna McCabe, AAS, Wellesley Robert Natario, Easthampton Karen Rassias, MAA, West Newbury Virginia Roback, MAA, Chicopee Deborah J Robbins, MAA, Westwood Jeff Rudziak, MAA, Barnstable Hannelore Simonds, MAA, Millis Kenneth Stein, CMA, Chelsea Linda B Swadel, MAA, Westborough Bruce A Symmes, CMA, RMA, MAA, Andover Anthony Trodella, RMA, Marlborough Policy Review Committee Edward Childs, Sandwich, Chairman Peter Caron, Lynn Michael Flynn, Framingham Henry Fournier, Essex Andrew R Machado, Barnstable R Lane Partridge, Hingham Molly K Reed, Wayland Professional Admissions Committee Kenneth A Stein, Chelsea, Chairman Robert Ellia, Shrewsbury Thomas Hogan, Ayer Maureen O Connor, Pembroke Bruce A Symmes, Andover Telecommunications Committee Elizabeth Dromey, Newton, Chairman Robert Allard, Worcester Gary Blau, DOR Pam Davis, Fall River Richard Stellman, Deerfield Exempt Property Committee George F Moody, Brookline, Chairman Richard Brown, Randolph Kathleen Colleary, Atty, DOR Pam Davis, Fall River James C Judge, Kingston Glen Matheson, Boston Budget Committee Deb Robbins, Westwood, Chairman Michael Flynn, Framingham Public Information Services Committee Hannelore Simonds, Millis, Chairman Scott Fahle, Dennis Patrick Harring, Winthrop Diane Lanney, Hubbardston Skip Moynihan, Wilmington Yano Tine, North Reading Appellate Tax Board Committee Michael Flynn, Framingham, Chairman Robert Allard, Worcester Richard Allen, Springfield Barry Cooperstein, Taunton Elizabeth Dromey, Newton Susan Lemay, Lowell David Martel, Esq James Sullivan, Plymouth John Taglilatela, Boston Past-Presidents Ambassadors Arthur K Holmes, Southborough, Chairman Anne M Carney, Easton Robert J Ellia, Shrewsbury Louise Hatch, Plymouth Frank J Ragonese, Ipswich Jeanne Reedy, Fairhaven Christine Saulnier, Montague Bruce A Symmes, Andover Richard G Weaver, Wareham Ethics Committee Robert J Ellia, Shrewsbury, Chairman Anne Carney, Easton Albert E Mercier, Fall River Bruce A Symmes, Andover Phillip J Waterman, Chelsea Site Selection Committee Everett L Martin, Cheshire, Co-Chair Virginia Thompson, Manchester, Co-Chair Frances Broderick, Dalton Jeanne Reedy, Fairhaven NRAAO Representative Molly Reed, Wayland mreed@waylandmaus MGFOA Representative Michael Flynn, Framingham Farmland Valuation Commission Everett L Martin, Cheshire, Cmr Cynthia A Long, Pembroke Linda Swadel, Westborough Technology Committee William Chenard, Newton, Co Vice-Chair Gail Fitzback, Eastham, Co Vice-Chair Dave Beck, Hull Pam Davis, Fall River Dick Finnegan, Duxbury Britt Hall, Cambridge Sheila Hambleton, Nahant Cheryl Pooler, E Bridgewater Linda Swadel, Westborough John Whelihan, Belchertown Kathryn A Peirce, Holliston, Chairman Sean McFadden, Rowley Web site address: State-Owned Land Committee Karen Avalle, Great Barrington Bruce Symmes, Andover Boat Excise Committee Jeanne Reedy, Fairhaven, Chairman, Jane Bettencourt, Fairhaven Marion Fantuccio, Quincy Patricia Favulli, Falmouth Frank Ragonese, Ipswich Bylaw Committee Anne M Carney, Easton, Chairman Bob Ellia, Shrewsbury Mike Flynn, Framingham Bruce Symmes, Andover Tax Policy Committee Edward Childs, Sandwich, Chairman Anne M Carney, Easton James C Judge, Kingston Molly Reed, Wayland Sebastian Tine, No Reading Outreach Committee Henry Fournier, Essex, Chairman Michael J Britton, New Marlborough Richard Finnegan, Duxbury Tax Research Committee Ken Stein, Chelsea, Chairperson Peter Caron, Lynn Debbie Dillworth, Nantucket Victor Santaniello, Wakefield Richard Allen, Springfield Pam Davis, New Bedford Walter Poirier, Leominster Re-organization Exploratory Committee Christine Saulnier, East Longmeadow, Chm Edward Childs, Sandwich Arthur Holmes, Southborough 16