Addresses double-digit increases
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Chief assessor Marc Levye explained the city’s process for assessing properties to attendees at a public informational session last Thursday.

By David R. Smith

The reports of 50-percent-plus tax increases have been greatly exaggerated, according to the city’s chief assessor, Marc Levye.

And while that may be true, he did not dispute that property owners have experienced varying degrees of sticker shock following the recent state-mandated triennial revaluation of property in Somerville. What he offered to a small group of residents at the West Somerville Community School last week in the way of guidance was an explanation of the appeals process open to property owners and an overview of how the assessments were determined and how those current figures compare to recent history.

The meeting Jan. 23 (rescheduled from Jan. 21 due to last week’s inclement weather) held by the assessing department, in conjunction with the Somerville Chamber of Commerce, was the first of two informational sessions to discuss the revaluation process and answer questions from residents. A second meeting was held this past Monday at the East Somerville Community School. The feelings expressed by residents, however, extended beyond the department’s purview and capabilities, showing a deeper concern about whether Somerville can remain affordable to the people and families who have called it home for decades and, in many cases, generations.

Levye outlined the triennial revaluation process, saying it was scheduled for fiscal 2013 but was pushed back a year at the request of the state Department of Revenue (DOR), which had a large number of communities due for revaluations that year. He noted the communities that were moved to fiscal 2014, such as Somerville, were chosen because of the DOR’s confidence that they were “doing a good job.”

Even before the most revaluation began, Levye said his office had already noticed higher sale prices on properties and lower vacancies.

“In some regards, folks are feeling the effects of changes that could have begun if fiscal 2013,” he said.

The revaluation process began last year and took nine months to complete. The information was submitted to the DOR in September and certified by the state in November.

Levye emphasized that his department follows both standard procedures, such as sale comparisons of like properties, and state-mandated procedures, rules and laws in assessing properties.

“The last thing we want to do is drive people out of the city,” he said. “In essence, all we’re doing is interpreting the market. It’s buyers and sellers, tenants and landlords, who shape the market. We simply come along and interpret the numbers we see.”

That being said, Levye said the process is not easy, both for the work involved and the potential impact on property owners.

“A revaluation is a long, difficult process that can be tough on assessors, and it can be tough on taxpayers,” he said. “We understand that.”

Part of the assessment process includes sending out income and expense forms to property owners. Levye noted that, on average, his office has a 28 to 30 percent return on those forms. Additional forms were sent during the most recent revaluation process in the hopes of getting a larger response. He said the return rate this time around was 40 percent.

“As good as that 40 percent number was, that still means 60 percent of landlords failed to respond,” he said. “The message sent to us was, ‘Go ahead and rely on the 40 percent who did.’ Our values are only as good as the information we receive.”

The last across-the-board increase came in fiscal 2007. Given the relative flatness of the market from the fiscal 2010 revaluation, Levye acknowledged certain areas and markets, such as Inner Belt, Davis Square and Assembly Square, as well as single-family homes, did see larger increases than other areas in the city.

Still, the scope of that increase, both in terms of dollars and property owners affected, is not quite as dire as talk about the subject has suggested.

Of the 16,000 properties assessed as part of the revaluation, Frye said 110 went up 50 percent or more.

“That’s a small number,” he said, adding that during the fiscal 2007 revaluation, 78 of 14,300 properties saw a 50 percent or more increase.

“There’s no systemic problem,” he said. “The numbers are simply not there to suggest widespread dissatisfaction.”

He went on to explain the appeals process, the filing deadline for which is Feb. 3.

He said the percentage of appeals over the last five years, as well as fiscal 2007, had a low point of 1.4 percent and a high point of 2.8.

“Those are extremely small numbers,” he said. “Ninety-seven to 98 of taxpayers have not filed appeals and have been satisfied with our assessments.”

He explained the reasons an appeal could succeed, and he also stressed that anyone filing an appeal needs to have submitted the income and expense form previously or provide one as part of the appeal and allow access to all areas of the property. Appeal decisions are rendered within three months.

Legitimate reasons for an appeal, he said, include looking at any structural defects or circumstances, such as a flood or recent fire or extended vacancies, assessors may have missed or not been aware of, as well as comparable sales showing the property being appealed is not as valuable as initially determined.

“What you want to do as best you can is convince us the assessed value in no way reflects a reasonable asking price you could get for that property,” Levye said. He stated the revaluation simply being too expensive in a property owner’s eyes is not sufficient grounds for an appeal.

Even if the assessors do not side with a property owner’s appeal, Levye said the decision can be further appealed to the state Appellate Tax Board. Even if it goes to that level, he said the assessors are willing to work with property owners along the way.

“For those who legitimately feel their (property is) overvalued, they should pursue the appeal process,” he said.

He also stressed that residents read their tax bills, especially if their taxes are packaged with other expenses, such as mortgages and insurance. He further noted that some relief, such as residential tax exemptions for property owners who live in their properties (Somerville is just one of 10 communities in the state to offer the exemption) and statutory exemptions for the elderly, widows/widowers and veterans are available and should be checked on to ensure a resident is receiving as much relief as possible.

“There are numerous programs within Mass General Laws you might qualify for,” he said.

Chamber of Commerce President Steve Mackey, who said 90 percent of his organization’s membership is comprised of small enterprises, expressed both his members’ concerns and the hope that the informational sessions will continue.

“The small business community is part of what makes Somerville so special,” he said, “and there really is a lot of concern.”

He said members he has spoken with were concerned about the actual methodology used by the assessors to reach their final figures, and he added that forums such as the two being held were a good step in increasing transparency and demystifying the assessment process.

“We look forward to working with you with that,” he said. “We look forward to an effective dialogue with the administration.”

Residents in attendance aired their frustrations with the changing real estate market, with some acknowledging it was an issue beyond the department’s control.

Teele Avenue resident Robert Lyons said his taxes have gone up $1,800 since 2010. He noted that surrounding properties, many occupied by Tufts students, are owned by either investors or at least people who do not live in the houses and do very little in the way of upkeep. Because he lives in his home and has a direct interest in maintaining it, his property values have increased.

“The longtime people from Somerville, they’re the ones who are getting hurt,” he said. “I think that’s the biggest problem right now.”

Another resident shared a similar frustration in feeling there was little to be done about the rising taxes for the same reasons expressed by Lyons.

“We’re not going get a rebate because it is worth that much,” the resident said.

Separate forums have been scheduled to address how affordable housing can be created and maintained, and Levye underscored the exemptions he previously mentioned that are available to property owners. He also noted that the city’s recent passage of the Community Preservation Act includes funding for affordable-housing initiatives.

Judy Jacobs, though, expressed the fatalistic attitude aired by other residents regarding the future of property taxes in Somerville after saying she has been dealing with the assessors for years regarding her property on Claremon Street.

“I’ve seen what’s going on in Boston and Cambridge,” she said, “and the wave is coming here now.”

To watch the video of the Jan. 23 session, visit YouTube and search “Somerville City TV.” Information on the appeals process is available on the city’s website, www.somervillema.gov.