Q: What is an abatement?
A: An abatement is a reduction of property tax. It may be based on a reduction in the assessed value of taxable property, or a parcel may be exempted completely from the property tax based on ownership and use (a church, for example). A taxpayer must apply for abatement only for the current fiscal year and only if there is a dispute concerning the property valuation or the property classification. An application cannot be filed on taxes from previous years.
Q: What are the requirements for an abatement of real property taxes?
A: A taxpayer may contest his or her tax liability on specific grounds:
- Overvaluation – the assessed value is considered too high
- Disproportionate Assessment – (pertains to entire property classes, not any individual unit or development)
- Improper Classification – for example, a property is classified as commercial when it is actually residential
- Statutory Exemption – the property qualifies for exemption from taxation based on its ownership use
Q: What are the procedures for filing for an abatement?
A: The FY 2006 Application for Abatement is available immediately following the issuance of the 3rd quarter FY 2006 tax bill.
The FY 2006 application for Abatement of Real Estate Tax form is due no later than February 1, 2006.
You can download an abatement form here reppabate.pdf
NOTE: If you choose to mail your abatement application, it must bear a U.S. postmark dated NO LATER THAN the deadline date. The assessor cannot waive this deadline and will not grant an abatement for forms received or post marked after the deadline date.
Q: How are values determined?
A: The Assessor determines the market value of every parcel of property in a city or town as of each January 1. There are three approaches to value: market, income, and cost.
- Market Approach: Market sales of similar properties that sold in the year prior to January 1 are analyzed, compared, and adjusted to forecast what the property would sell for on January. Most residential property is valued by the market approach.
- Income Approach: The income approach is applicable to real estate that is normally bought and sold on the basis of its income-producing capacity. The approach requires significant data such as rents, occupancy rates, operating expenses, and investor requirements. The approach is most useful in valuing investment property where sufficient market sales are not available.
- Cost Approach: The cost approach involves an estimate of the current reproduction or replacement cost of the building, deducting an estimate of depreciation (or loss of value from any cause) and then adding an estimated value of land. The cost approach is most applicable to special-purpose properties that are not readily sold or rented.
Q: What is Classification?
A: In 1978 the citizens of the Commonwealth of Massachusetts adopted a Constitutional amendment authorizing the General Court to classify real property into as many as four classes (residential, open space, commercial, and industrial) and to tax such classes differently. The Department of Revenue supervises the implementation of property classification. In Agawam, the determination to allocate the tax burden by class is made annually by the Town Council, with the approval of the Mayor.
Q: What are the classes of property?
A: Assessors in Massachusetts assign all real property according to its use. The four classes are: Residential, Open Space, Commercial, and Industrial. Personal Property constitutes a separate class. (See “What is Personal Property?”)
- Residential: Includes all property containing one or more units used for human habitation. The class includes accessory land and buildings (e.g. pools, garages, etc.). Single Family homes as well as apartment buildings are in this category.
- Open Space: Includes land maintained in an open or natural condition that contributes to the benefit and enjoyment of the public. Such land cannot be held for the production of income.
- Commercial: Includes any property held for the purpose of conducting a business (e.g. office buildings, retail stores, etc.).
- Industrial: Includes any property involved in manufacturing, processing or extraction. It includes utility real property used for storage and generation. Not all parcels of real property fall into the four classes. Some property has mixed residential/commercial use.
Q: What should I do if I recently sold my property, but I am still receiving a tax bill?
A: If you receive a bill, please forward it to the new owner immediately as it is his/her responsibility to make payment.
Q: Who is responsible for the taxes if a property is sold after January 1?
A: Although the tax bill will bear the name of the assessed owner as of January 1, the new owner is responsible for all taxes once the sale of the property is finalized. The amount of tax owed by the old owner is determined at the time of closing and is typically deducted from the selling price. Once this deduction is made, the new owner must pay all bills, as they become due in order to avoid collection actions, including foreclosure. The lawyers assisting each party should already have investigated any outstanding taxes and obtained a Municipal Lien Certificate. Once the agreement is made, the new owner is obligated to pay any outstanding taxes due on the property.
Q: How do I change my tax bill mailing address?
If you have a new address and want your bill mailed there permanently, you can request the “Change of Tax Bill Mailing Address form by calling the Assessor’s Office at 786-0400. Fill out the form and return it directly to the Assessor’s Office, 36 Main St., Agawam, MA 01001. Also, you can obtain the Change of Tax Bill Mailing Address form by clicking here/filestorage/80/162/237/273/chgaddr.pdf
Q: How can I change the tax bill to my name after purchasing a parcel of property?
A: The Collector’s Office is required by Massachusetts General Law to bill the assessed owner as of January 1, and must issue the bill of the same fiscal year (July 1 to June 30) to the owner as of January 1.
The name will change automatically on the next fiscal year bill. If, after the passage of time, the name still is not changed on the bill, please contact the Assessor’s Office at 786-0400.
You can change your tax bill mailing address however. Print out the “Mail Address Change” form, complete the form, and send it directly to the Assessor’s Office, 36 Main St., Agawam, MA 01001. Or, you can call the Assessor’s Office at 786-0400.