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Check List for Real Estate Tax Abatement in Massachusetts

Filing for a real estate tax abatement should be considered by a property owner in cases where the tax assessed value of the property is greater than the fair value of the property.
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Real estate tax assessments are valued as of January 1st of the preceding fiscal year.  For example, a town’s fiscal year 2014 will run from July 1, 2013 – June 30, 2014, the valuation date is January 1, 2013.  Document your estimate of fair value as well as the assessed value as of that date.
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Note: Fair value is defined by the law as the price on which a willing seller would sell the property to a willing buyer in an arm’s length sale, if neither party was under compulsion and each was aware of all the relevant facts. 
Determine when applications are due to file for the abatement.  The application range is usually a narrow range of 30 days or less.  Document the application due date here.
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Note:  An application for abatement must be filed on or before the due date for payment of the first installment of the tax bill. For towns in which property taxes are due quarterly, the application must be filed prior to February 1 for a calendar year and prior to August  1 for a June 30 fiscal calendar.Note: Your real estate taxes must be current and paid by the due date.  Late payment of taxes results in an automatic dismissal / denial.  Filing an application for abatement does not eliminate your tax obligations, so you should continue to pay all taxes due throughout the abatement process. 
Obtain the application for abatement form from the local Board of Assessors’ office.  (An incorrect form will not be considered.)
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Complete the application for abatement and mail in by the due date.  The application should include documentation to support your determination of fair value.  Items to be presented might include:

  • Comparable sales as of the valuation date.
  • Assessed values of comparable properties.
  • Physical condition of your property.
  • Recent vacancy of the property.
  • If you recently purchased the property from an unrelated party and the assessed value is more than you paid for the property, then this is very relevant.
  • A recent appraisal by a qualified party.
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If the application is denied, consider filing for an appeal.  Complete the application for appeal with the Appellate Tax Board within three months of the date the application was rejected by the local Board of Assessors. (Note that inaction by the assessor after the application should be considered a rejection after 3 months.  At this point the appeal can be filed.)
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Note: There are two appeals procedures, either the formal or informal procedure.  In the informal procedure, the Appellate Tax Board may eliminate formal rules of pleading, practice and evidence.  All efforts are made to reduce the expense associated with the appeals process. Note: Fees to file an appeals application are nominal, but should be considered. Note: While an attorney is not required in the appeals process, it should be considered especially for larger property matters. 
Research and prepare for the appeals case.  The following should be presented:

  • Description of the property
  • Review property cards
  • Research sales of comparable properties, including photos, condition reports, dates of sale, location maps, etc.
  • Research comparable assessments
  • Environmental contamination
  • Unusable wetlands
  • Vacancy rates
  • Property’s income potential
  • Consider using an expert witness (Note that the witness must be available at the appeals hearing for cross examination, otherwise it is deemed hearsay and the Board cannot rely on the evidence presented.)
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Note: A prehearing discussion should be considered between the owner and the Board of Assessors.  Attempts can and should be made to settle at this time. 
This should not be considered tax or legal advice and due diligence should be considered by anyone in the process of abating their real estate tax assessment.

If you would like more information on this topic, please contact Jamie Downey at 800-849-6022 or jmdowney@downeycocpa.com.

Downey Co CPA