Taxed Enough ??

The average house in Holland was selling for $230,000 in the second quarter of 2007 and is selling today for $155,000! This is a decline of 32.6% in value!

You should be paying 18.1% less this fiscal year (FY2011), than you paid three years ago (FY2008), right?
(The 18.1% decline is the difference of $221,000 —average value on 1-1-2007— and $181,000 —average value on 1-1-2010—).
Unfortunately it does not work this way. The town just raises the tax rate to get the same amount as in the previous Fiscal Year plus an additional 2-1/2%, (proposition 2-1/2).

On January 1st, 2010, the day relevant to determine assessment values for the current fiscal year (FY2011), the average house was worth $181,000. This is still a decline of 18.3%.
To see a graphic which shows the decline, click first here and enter the zip code of Holland, click “GO” and then, click here. It is necessary that you click both links in this sequence to see the graphic (the first “here” and then the second “here.”)

If your property is a lakefront property, your property declined less in value, if it is away from the lake, the decline in value is even more!

If you feel you are paying more than your fair share, you can file for abatement. Filling for Abatement is simple and free. To file an application you need an approved form. Click here, to download the needed form, fill in the blanks, print the form, bring it or mail it to the Assessors Office, and you are done.

If you prefere to type the information into the form before you print the form, you can do this by clicking here! After you are done, print the file, you can not save it to your harddrive, you can only print the form!

I will file myself and will post about my experience here on the Holland Blog.

If you own more than one property in Holland, you need to file a separate application for each property. You need to file a separate application for every tax bill you are receiving.

A denial or failure to act by the Holland Board of Assessors can be appealed to the Massachusetts Appellate Tax Board (ATB). The ATB issued guidelines for filing an appeal, click here to read the booklet.
I can already guarantee you that I will appeal the Board of Assessors decision to the ATB. The town of Holland has a dismal record of winning appeals with the ATB.
There is a filing fee if you decide to appeal to the ATB. In most cases the filing fee is $100.00, (properties assessed between $100,000 and $999,999, see 831 CMR 1.10), or click here, and scroll to page 5 for more information.

You don’t need a lawyer to do either one, it is simple. Click here, to read more about the Appeals process to the State Appellate Tax Board.

Understanding Tax Terminology:

Fiscal Year:

A fiscal year includes always half of the previous year, fiscal year 2011 therefore includes the time period of the second half of 2010 and the first half of 2011.

Date when value was assessed:

Taxes for a fiscal year are always based on the value real estate had on January first of the preceding year; for instance, the taxes we pay for the fiscal year 2011 are based on the value your real estate was assessed as of January 1st 2010. The bills which are due on February 1, 2011, are the third of four payments for the current fiscal year, fiscal year 2011.

Abatement remedy:

The abatement remedy accrues on the date that the actual tax bill is mailed, not upon the mailing of the preliminary bill, M.G.L. c.59, s.23D.

Petitions for abatements need to be based on one or more of the following grounds:

  1. the assessed value placed on the property by the board of assessors exceeds the fair cash value of the property as of the valuation date,
  2. the property is assessed at a higher percentage of fair cash value than is other property in the municipality (“disproportionate assessment”),
  3. the property is fully or partially exempt from taxation, or
  4. the property is improperly classified.

Actual Tax Bill:

The actual tax bill is the tax bill that shows the definite “Tax Rate per $1000.” The tax rate becomes “the Actual Tax Rate” once the State Department of Revenue determines the tax rate. For Holland it is $14.58 per $1,000.00 of assessed property value for FY2011, or 15.58‰.

Time Frame for Filing a petition for Abatement:

Abatement petitions are due if a town sends out quarterly bills, as Holland does, on November 1st, February 1st, May 1st, or 30 days after mailing of the actual tax bill. In other words, the date of the postage stamp is applicable date to calculate the deadline. The town of Holland just mailed the “actual” quarterly tax bill (third of four quarterly tax bills for FY2011). The taxes are due within 30 days or as stated on the bills, February 1st, 2011.

To learn more about the Massachusetts Appellate Tax Board, click here!
I will write much more about my tax situation and the members of the Board of Assessors.
The members are:
Brad Nobel, Earl Johnson, and Christian Petersen.

To qualify for a tax abetment, you need as little as some loose tiles in your finished basement, I learned this form Brad Nobel and reported about it in the piece These are difficult times, need a tax-break?
General information about the abatement-procedure can also be found on the back of the tax bills due on February, 1st 2011. There is also an unfinished sentence included, the partial sentence is “If your...” I wonder what that is all about??

January 4, 2011, Peter Frei

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Read also:


The Holland Sports Marina Auctioned Off Today.
Notice of Tax Taking.
Brian Johnson is wasting at least $100,000 the town does not have and needs to borrow.
Public Hearing on Budget (Draft) for FY2011.
Is there Blood in Stones?
Wettlaufer, Johnson, and Foster defeated again; when will they stop wasting money?
These are difficult times, need a tax-break?
Insanity
Holland’s officials still wasting money?
Department of Revenue officials visit town again.
Tax levy limit override vote.