FY08 REVALUATION PROCESS UPDATE FROM BOARD OF ASSESSORS
The Board of Assessors values real and personal property for tax purposes each year.
According to state statutes and Department of Revenue (DOR) regulations, the Mass Appraisal method in used.
Valuations are based on sales, using the last full calendar year (CY) before the beginning of the applicable fiscal year (FY) - i.e., CY2006 is used for FY08. 2007 sales activity will be reflected in the FY09 Interim Year Adjusted values.
Only actual qualified sales are used in the sales analysis. A qualified sale is one that's determined to be an arm's length sale: a real estate transaction in the open market freely arrived at by normal negotiations without undue pressure on either the buyer or the seller. Actual sale prices, not offering prices or time exposed to the market, are factored into the sales analysis.
CY06 sales in Concord did not show significant price deterioration, in spite of the perception that prices may have been coming down. Concord continues to be less subject to economic volatility than most cities and towns.
The CAMA (Computer Aided Mass Appraisal) system is used to calculate the values.
CAMA tables with the factors used to calculate the values are updated each year based on the sales analysis. The factors are adjusted so that the median assessment to sale price ratio in within 10% of 100% of fair market value. The computer model created is then applied to the properties of the entire town to arrive at a new value for each property.
Every third year the DOR must certify the values through the revaluation process. Revaluation is a year-long, detailed examination process of the methodologies used by the town as well as the values derived through the mass appraisal process.
In recent years the DOR has increased its scrutiny of the factors used to determine land values, including the land curve, various rates for different classes of properties, and adjustments for parcel characteristics.
Once preliminary values are calculated using the updated CAMA tables, the old to new values are examined for accuracy, reasonableness, equity and consistency.
The Revaluation process includes a public disclosure requirement. In Concord, notices are mailed to each residential property owner, and listings of the proposed values are available at the Town House, Libraries and Harvey Wheeler Center, values are available on Concord's website, www.concordma.gov, and published in the newspaper. For a two-week period property owners may submit data correction forms to correct any errors in their property description and/or meet with an Assessor to discuss their property's data.
Highlights of proposed changes from FY07 to FY08:
o Overall town valuation: +3.5%
o New Growth: 2%
Largest contributors: 3rd bldg at N.E. Deaconess, new condo complex in W. Concord, plus
about 2 dozen new single family residences.
o Every property changes differently from year to year depending upon the individual
characteristics of that property. Even though values are staying relatively flat from
FY07 to FY08, approximately half of the properties increased in value while half decreased.
o Three-quarters of single family residences increased or decreased less than 5%; increases or
decreases greater than 10% are usually due to factors other than the revaluation, such as
building permits, parcel splits, change of use, disasters, etc.
The Board of Selectmen decides the tax policies (classification, etc.) and sets the tax rate at their hearing in December. Actual FY08 values are reflected on the January 1, 2008, tax bills.
The 3rd and 4th quarter tax bills issued in January and April are each half of the total due for the year less what has been billed on the 1st and 2nd preliminary bills (issued in July and October).
The tax rate is dependent upon the budget that is adopted by Town Meeting, and to a much lesser degree variances in state aid and other receipts and borrowing authorizations. If there were no change in the budget there would be little, if any, change in the total tax bill whether the total valuation was increased or decreased.
October 18, 2007
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