ASSESSOR'S OFFICE
FREQUENTLY ASKED QUESTIONS
REAL AND PERSONAL PROPERTY
HOW IS MY PROPERTY ASSESSED?
Each year the assessing department conducts a review of sales in Swampscott. Although this information is reviewed and evaluated throughout the year, the bulk of the final analysis is completed in the Fall. The overall guideline for assessing property is 90 to 110 percent assessment to sales ratio. This does not mean that there will be no occurrences of properties outside that guideline. Assessments are based on fair market value. Once the reassessment of properties has been completed, the information is submitted to the Department of Revenue and a classification hearing is held to determine the new tax rate.
CLASSIFICATION HEARING
The classification hearing is open to the public and is a joint meeting of the Board of Assessors and the Board of Selectmen. The Board of Selectmen has the statutory authority to determine the tax rate each year. The Board of Assessors assists the Board of Selectmen during this process and each year has made a recommendation regarding whether and how much of the tax burden will be shifted from residential to commercial. In FY 2010, the Board of Selectmen voted unanimously in favor of the full 175% shift. The Department of Revenue sets the assessment date for all property. The assessment date is always behind what the actual market is. For example, the FY 2010 assessments are based on calendar year 2008 market conditions.
WILL SOMEONE BE INSPECTING MY HOUSE?
Inspections of property are conducted throughout most of the year. An inspection may occur as part of an ongoing cyclical re-inspection program, as the result of a building permit being taken out, as the result of an abatement application being made, or at the special request of any property owner.
HOW WILL I KNOW WHAT MY NEW ASSESSMENT IS?
The Department of Revenue approves the Town’s values and new tax rate each year. The new assessment is available on January 1st, with the issuance of the 3rd quarter (1st actual) tax bill.
IF MY ASSESSMENT INCREASES WILL MY PROPERTY TAX INCREASE? IF MY ASSESSMENT DECREASES WILL MY PROPERTY TAX DECREASE?
Higher property assessments do not cause higher taxes. The total municipal budget determines the money to be raised from property taxes. The tax rate can stay the same, or may even decrease based on the overall increase in property values. It is also true that decreasing property values generally do not result in lower taxes for the same reason.
HOW DOES PROPOSITION 2 1/2 AFFECT THE TOWN’S ABILITY TO LEVY ADDITIONAL TAXES?
Proposition 2 1/2 provides for increases in the tax levy limit for Towns in different ways:
First, proposition 2 1/2 allows an automatic increase in the total levy of 2 1/2%. Raising the tax levy limit beyond 2 1/2 % can also be done by a debt exclusion (a capital expenditure , e.g., to pay for a new high school), or through an override (e.g., an operational override to pay for fire, police, school, town administration, etc.). While a debt exclusion affects your taxes only until the debt is paid in full, an override is a permanent addition to the tax levy base over and above the proposition 2 1/2 limit.
HOW DOES PROPOSITION 2 1/2 AFFECT MY INDIVIDUAL BILL?
The levy limit provisions of Proposition 2 1/2 affect the total amount of taxes to be raised by a city or town. It does not apply to an individual tax bill. Proposition 2 1/2 does not mean that your taxes cannot be increased by more than 2 1/2 percent in a year.
WHAT PERSONAL PROPERTY IS TAXABLE?
All personal property of a business must be listed and filed with the Board of Assessors by March 1st each year. The official form for providing this information is a “Form of List.” Individuals, partnerships, associations, or trusts, are taxable on all tangible personal property except motor vehicles and trailers subject to an excise, boats subject to an excise, and non-commercial registered airplanes. Some examples of taxable personal property include the following:
- Poles, underground conduits, wires and pipes
- Machinery (such as copying and reproduction equipment)
- Tools and Equipment (such as a dentist drill)
- Business Furniture and Fixtures (such as desks and leasehold improvements)
- Merchandise (such as inventory of shoes in a clothing store, materials and supplies used to produce a finished product)
Unincorporated businesses must report on all of their furniture, fixtures, machinery, equipment and inventory.
Incorporated businesses must report on all of their furniture, fixtures, machinery, equipment, and inventory.
Classified manufacturers need only report on poles, underground conduits, wires and pipes.
HOW DO I APPEAL A PERSONAL PROPERTY TAX?
Application forms are available from the Board of Assessors during regular business hours, or can also be downloaded from the internet.
The application must be filed with the Board of Assessors by February 1st of the current fiscal year, after the 3rd quarter (January 1st) bill is mailed.
If a “Form of List” has not been timely filed, the Board of Assessors cannot abate any taxes unless the taxpayer can show a reasonable excuse for not filing the form, or the tax assessed is more than 150% of what the tax would have been had the form been timely filed. Only the amount over 150% of the correct value can be abated.
HOW DO I APPEAL A REAL PROPERTY TAX?
Application forms are available from the Board of Assessors during regular business hours, or can also be downloaded from the internet.
Applications must be received by the Board of Assessors by February 1st of the current fiscal year, after the 3rd quarter (January 1st) bill is mailed.
REQUEST FOR ADDITIONAL INFORMATION
The Board of Assessors is authorized by law to request information that is necessary if they are to properly determine fair cash value of the property. Failure to respond to requests for information can result in denial or cause a taxpayer to lose the right to appeal.
NOTICE OF APPROVAL OR DENIAL
The Board of Assessors has 90 days to act on your abatement application.
APPEAL TO THE APPELLATE TAX BOARD
If you are dissatisfied with the decision of the Board of Assessors, you may file an appeal with the Appellate Tax Board.
For more information refer to the official application abatement form, which summarizes a taxpayers rights and responsibilities. Some information regarding the right to appeal your taxes also appears on your tax bill.
For additional information, the Board of Assessors can be reached at 781-596-8858.
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