|
|
Banner file photo
Paul Gavin, here taking measurements during a past year’s revaluation process, is starting the process for 2009. |
|
|
2009 revaluation not likely to bring drop in taxes, says assessor
By Pru Sowers
Banner Staff
PROVINCETOWN — The town assessor’s department recently embarked on a property value recertification process that seems likely to doom the hopes of people looking for a tax decrease based on the declining value of their homes.
The recertification process is done every three years, as required by the state Dept. of Revenue. While the town does a property revaluation every year and incorporates those figures into the annual tax rate, the state requires a thorough examination of all Massachusetts town’s calculations and sales tables every three years. Provincetown’s assessor, Paul Gavin, said the process can take six to eight weeks to complete. He has just begun this round of revaluations.
Despite the fact that this year’s “reval” will take place at the end of what has been a difficult year for housing, to say the least, the likelihood that most property owners’ taxes will come down is slim. Gavin said that each year’s revaluation is based on the housing market two years previous. As a result, the property value comparison that will take place for the fiscal year 2009 revaluation will be based on the housing market in the 2007 calendar year. And in 2007, the Provincetown housing market was still fairly strong.
“The sales were slowing down but things were still selling at their assessed values. There were slow sales and properties staying on the market longer. But many sales were at or above assessed value,” Gavin said.
As a result, the FY 2009 property valuation will be based on sales in 2007 as compared to their current assessed values. Gavin expects at best a “flat line” result, meaning values will remain largely the same. He also said that the housing market in Provincetown is relatively stable. He pointed out there have been only four foreclosures so far in 2008. That compares to five in calendar 2007 and one in 2006, far below the national average.
“[The housing downturn] is not hitting us as bad,” he said. “The Cape has a lot of older people. They made their investment a while ago and they’re not going to lose their homes. And you have a lot of second homeowners who have a pretty good income.”
The fact the annual revaluation is based on the housing market two years earlier is the reason assessed property values in Provincetown have continued to rise for single family homes. In the FY 2006 revaluation, single-family homes rose an average of 22 percent while the average condominium rose 21 percent. In the 2007 reval, the average single family home went up 8 percent while condos went up 4 percent. And in FY 2008, the assessment of an average single family home continued to rise 1.5 percent while condos finally turned downward, falling two to three percent, according to the assessor’s office.
And even if or when — assuming the national housing market continues to fall — lower property valuations finally do hit Provincetown, there is little chance taxes will decrease. Municipal Finance Director Alix Heilala said if assessments fall, the tax rate will increase in order to bring the town back to the level of revenue it needs to raise to pay its bills. The state allows the town to raise a specific levy amount based on property taxes and the town is currently at that level, she said. That levy limit was just under $13.4 million in FY 2008.
“We still have to operate the town at a certain level. If the assessment goes down, the tax rate goes up,” she said.
“Why would you want a big drop?” Gavin asked, referring to a property’s assessed value. “Your taxes aren’t going to go down. If values went down by half, your [tax rate] would double.”
Provincetown’s tax rate is currently $5.12 per every thousand dollars of assessed value. In FY 2007, the rate was $4.96. The new tax rate will be set early next year.
psowers@provincetownbanner.com
|
Posted Meetings
Outer Cape Worship Services
|
|
|
|
|
Oct 30th, 2008