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HomeMy WebLinkAbout1970-11-16 Assessing Report REPORT OF THE ASSESSING PRACTICES COMMITTEE TO THE TOWN OF READING AT THE SPECIAL TOWN MEETING - NOVEMBER 16, 1970 Signed; seph H. Picano, Chairman Francis hty�Mmber/Secrete A. Anderson, , qry Corliss T. VanHorn Member Richard J. L ey, MembeL P REPORT DISTRIBUTION • Copy #1 - Town Moderator - Mr. Kenneth C. Latham #2 - Town Clerk - Mr. Lawrence Drew #3 - Board of Assessors - Mr. Ralph Horn - Chairman #4 - n n " - Mr. Frank Stevens - Member #5 - " " - Mr. Robert Nordstrand - Member - • #6 - Board of Selectmen - Mr. Fred C. Kenney, Jr. - Chairman #7 - Finance Committee - Mr. Bayard Lincoln - Chairman Assessing Dept. Sub-Committee #8 - Reading Public Library - Mrs. Joyce K. Miller - Librariaq #9 - Assessing Practices Committee - Joseph H. Picano - Chairman #10- " " " - Francis H. Doughty - Secretary #II- " " " - John A. Anderson - Member #12- " " " - Corliss T. VanHorn - Member #13- n 11 - Richard J. Lucey - Member #14- State Representative - Mr. Nils Nordberg #15- " " - Mr. Daniel Towse #16- State Senator - Mr. G. Kennealey, Jr. - Governor's Committee Master Tax Program #17- Assessing Dept. - Belmont - Mr. Melvin C. Westlund - Chairman Board of Assessors #18- " " - Lexington - Mr. Willard Grush - Chairman Board of Assessors #19- " " - Winchester - Mr. Windsor S. Carpenter - Chairman Board of Assessors #20- - Burlington - Mr. Elmer J. Morrison - Chairman Board of Assessors #21- - Wakefield -- Mr. Kenneth Morang:- Chairman Board of Assessors ,� #22- State Senator - Mr. William Saltonstall TABLE OF CONTENTS • Page Authority and Membership of the Committee 1 Objectives 2 Meetings with the Board of Assessors 3 Legal Review 5 Surveys - Local Towns 6 Assistance from the State Tax Commissioners office 7 Citizen Contact 7 ' Valuation Methods 8 Analysis of Property Values and Valuation Levels 11 Assessing Practices and the Law 13 Personal Property Taxes 15 Assessing Department Costs 15 Comparative Assessing Salaries 16 Conclusions 17 Recommendations . 19 Acknowledgements 21 APPENDICES A - Legal Review • B - Questionnaire C - Letters to Associate Commissioner of Taxation D - Communications - Reading Taxpayers Association, League of Women Voters E - Analysis - Assessments Versus Selling Prices r AUTHORITY AND MEMBERSHIP OF THE COMMITTEE Article 59 of the warrant of the Annual Town Meeting of Reading, Massachusetts held on March 30, 1970, was voted as follows; "On motion of Corliss T. VanHorn it was voted that the Selectmen be, and they hereby are, authorized to form a committee of five (5) citizens who' hold no elective office other than that of Tann Meeting Member, to review current assessing practices and to report to the next annual or special town meeting occurring after six months.-- The onths."The committee members were appointed by the Board of Selectmen in their letters of April 23rd, 1970. The appointed members met on May 5th, 1970 and were organized _ as follows: _ Chairman - Joseph N. Picano Secretary - Francis H. Doughty Members - John A. Anderson Corliss T. VanHorn Richard J. Lucey The official committee meeting tine was 7:30-9:30 p.m., Tuesday evenings, • In the Town Hall . -r -2- OBJ ECTIVES 2-OBJECTIVES 1 In its first few meetings the Assessing Practices Committee established the following as its objectives; • 1. Evaluate the general laws relating to the operation and administration of the Board of Assessors, and to determine the degree of compliance with such laws. . 2. Evaluate methods used by the Board of Assessors in determjning individual property values, on an objective basis, as well as compare methods with surrounding towns. - 3. Evaluate general policies developed by the Board of Assessors, through practice or decision, and compare these policies with those of surrounding towns., 4, Develop conclusions and recommendations on those matters which relate to the overall effectiveness of our assessing practices, and present these conclusions and recommendations to the Board of Assessors. 5. Prepare a written final report of the findings of this committee and prepare such a report in sufficient detail to inform the reader fully of the approach used by the committee, and the data gathered_ by the committee. The intent is to provide the reader with sufficient back- ground information to understand better the conclusions and recommendations given in this report. -3- MEETINGS WITH THE READING BOARD OF ASSESSORS It was the intent of the committee to work closely with the Board of Assessors and to keep them fully advised as to our direction and, hopefully, to gain their assistance in developing some of the data necessary to a study of this type. There were four meetings held with the Board of Assessors. The initial meeting was between the Chairman of this committee alone with the Board. Three subsequent meetings were with full representation of the Board and the Committee. The major subject matter discussed in these meetings is summarized as follows: Meeting N1 - May 21 , 1970 On May 21, 1970, the Chairman of the Assessing Practices Committee met with the Board of Assessors to establish the basis for a common approach, which would make the study as positive, efficient and objective as possible. At this initial meeting it was decided: 1. That the Assessing Practices Committee would make contact with other towns to gain an insight into their practices and procedures. The specific towns to be surveyed were determined in cooperation with the Board of Assessors. The Chairman of the Board, Mr. Ralph Horn, agreed to contact each of the surrounding towns selected to ask their cooperation In developing the required informations. 2. That the Chairman of the Assessing Practices Committee would write to Mr. Donald T. Wood, an Associate Commissioner of the Department of . Corporations and Taxation, who is responsible for the Division of Local Taxation. The letter to be written was to ask for his assistance and the opportunity to meet with him to develop any pertinent data. Mr. Horn agreed to contact the Commissioner and make every effort to bring such a meeting about, after receiving a copy of the letter to be sent by the Assessing Practices Committee. -4- 3. To establish uniformity as to the type of data developed in the sur- rounding towns, It was agreed. that a predetermined format of questions would be required and it was requested of the Board of Assessors that they assist in developing this questionnaire. 4. To set a date for a full meeting between the Board of Assessors and the Assessing Practices Committee for the purpose of informing the committee of the administrative procedures and evaluation methods used by the Board of Assessors. Meeting #2 - June 3, 1970 At this meeting the Board of Assessors described fully the method of operation of the Assessing Department ; gave careful explanation to the administrative practices followed in the department ; provided sample forms used and discussed general reporting requirements: A major portion of the meeting was discussion of the methods used in arriving at valuations and the procedures used by the assessors in discovering property improvements and modifications. Meeting N3 - June 30, 1970 The third meeting with the Board of Assessors was requested by the committee, for in review of the results of the second meeting it was determined that the members of the committee did not yet comprehend the specific method of valuation used by the Board of Assessors. This meeting was spent almost exclusively on the subject of the valuation procedure and provided additional insight into the method used. At this meeting the questionnaire developed by the Committee, which was to be submitted to the Town of Reading as well as those towns selected for comparison, was discussed. The Reading questionnaire was left with Mr. Horn at that time. -5- Meeting #4 - November $, 1970 • The purpose of this meeting was to ask a few remaining questions which ' developed through the final phases of the study, and, most importantly, to present our preliminary conclusions and recommendations to the Board of Assessors for their comment. It was the position of this committee that the Board of Assessors should be the first to hear the results of our study. Further, it was • our desire to give the Board the opportunity to discuss these results if there were any questions in either understanding or agreement. LEGAL REVIEW To become familiar with, and review the laws applicable to assessing practices, a copy of a publication entitled "General Laws Relating to Local Taxation--, issued by the Massachusetts Department of Corporations and Taxation, was obtained. The more pertinent aspects of the law have been extracted and are included in Appendix A. The essence of the more important elements of the law are as follows: I. The authority for the supervision and administration of local assessors Ices solely with the State Department of Corporations and Taxation. The only local control that can be exercised on this Board is in the selection of the individual assessors, which may be by popular vote or appointment, and in the establishing of the remuneration to be paid to the assessors and the budgets to be provided for the operation of the department. 2. The Appellate Tax Board is required to make an annual report to the • General Court as to suggestions and recommendations for the amendment, alteration and modification of existing laws relative to taxation and related matters. 3. The law requires that all property be -valued fairly and proportionately and that it be valued at its full fair and cash value annually. -6- 4. The responsibility for naintaining uniformity in property valuation throughout the state lies with the Commissioner of Corporations and Taxation. On the basis that all property is fully valued, and such full valuation is reported each year, and that the valuations of property throughout the state are maintained on an equitable basis, all • distributions of income or expense based on such valuations should there- fore be equitable. SURVEYS - LOCAL TOWNS In that the surveys in surrounding towns had to be accomplished by the in- dividual members of the Cocrzittee, it was determined that a standard set of ques- tions had to be developed so that comparable questions would be asked in each to:an and the answers therefore would be susceptible to comparison. In the first meeting the Board of Assessors were offered opportunity to assist in the development of the questions. However it resulted that the questionnaire was developed by the Committee and presented to the Board in the meeting of June 30, 1970. After review with the Board of Assessors the questionnaire was left with them. In sub- sequent weeks contact was made with the towns of Burlington, Lexington, Belmont, Wakefield,' Winchester and Stoneham. Individual towns were assigned to specific members of the Committee who then handled delivery of the questionnaire, the inter- views with the Assessors in their assigned town, and the reporting to the Committee. A copy of the questionnaire is presented in Appendix B. The questionnaires were returned by the towns of Reading, Burlington, Lexington, Belmont, and Wakefield, in varying degrees of completion. However, a very liberal amount of time was granted by each town. ASSISTANCE FROM THE STATE TAX COMMISSIONER'S OFFICE In an attempt to take advantage of all existing data, an interview was requested with the Associate Coinissionar of Corporations and Taxation, Division of Local Taxes, hr. Donald T. Wood. A copy of the initial communication of hay 29, 1970, and the follow-up letter of September 25, 1970 is contained in • Appendix C. No interview resulted from this correspondence. CITIZEN CONTACT Recognizing that the very existence of the Assessing Practices Committee - was created through certain dissatisfactions, it was the intent of this Committee to determine the "problems" as stated by those who were interested In seeing such a Committee established. The League of Women Voters was contacted and replied that they had no specific questions or problems to raise at that time. The Reading Tax Payers Association was requested to state their position on assessing practices in the Town of Reading, in writing. A reply was received on July 22. 1970, which stated their position and also referred to the suggested program developed by the RTPA before this Committee was established. Copies of these communications are contained in Appendix D. The primary concern of the Reading Taxpayers Association was that. not withstanding the amount of money spent for • revaluation and the employment of a full timeappraiser, the Fe appears to be (in the opinion of the RTPA) many inequalities in Reading's assessments. Also expressed was the feeling that a basic formula, that is public information to all of the tax- payers, should be developed. It was also pointed out, in the sare letter, that r _8_ • studies by the Reading Taxpayers Association indicate that Reading is no near the 100°/, valuation claimed by its Assessors. On September 29, 1970, representatives of the Reading Taxpayers Association, Mr. Clifford Holt and Mrs. Grace Bowie, appeared before this Committee. This meeting was held at the request of the Reading Taxpayers Association, In this meeting, a number of points were discussed. Specific valuations • and historical matters relating to those valuations, as to how they compared and what some of the inferences might be, were introduced in the discussion. The eommittee advised the RTPA representatives that we did not intend to get into any specific matters of valuation as to do so would presuppose a knowledge of appraisal procedure,,which of course no one individual in the discussion could claim to have. There were a number of documents and communications which the RTPA offered to leave with the committee. They were asked to hold these documents and to transmit them by letter, using them as supporting data. It was suggested that this letter contain more detail than that received in their letter of July 22, 1970. No further written communications were received from the Reading Taxpayers Association. Through further discussion with the President of the Reading Taxpayers Association, prior communications and correspondence between the RTPA and the Board of Assessors were reviewed. The responses to the RTPA by the Board of Assessors, were unsatisfactory to the RTPA. VALUATION METHODS • In determining the value of any specific piece of property, the profes- sional appraiser has at his disposal data provided by various Federal and State agencies, assessor and appraiser professional organizations, and other commercial services, which provide current data on construction costs, economic levels, etc. The available, applicable data is used at the discretion of the appraiser in making an appraisal. Although the appraisal -9- technique is, in its final form, an art, there are in fact many quantitative • elements involved in arriving at a final valuation. Although the .individual approach taken by one appraiser might be different from that of another, the principles of their approach are consistent. A good thorough professional appraisal of the average residence could cost anywhere from $40 - $100. This cost certainly reflects, at least in part, the extensive time and work that • must be accomplished in order to arrive at a valuation which the appraiser can defend, in court, if necessary. In the process of general revaluation such as the revaluation in the Town of Reading in 1967, a professional appraisal firm is normally employed. There are a number of firms available which offer the same general service, namely; 1. A reappraisal of all residential properties in the town. 2. A complete mapping and cross-referencing of properties if such is necessary. 3. The development of detailed clerical procedures necessary to maintain the valuations set by the firm. 4. Preparation of an assessing manual which is a compilation of the factors and values used in arriving at the final property valuations. The Assessing Manual provided usually includes such information as the relative cost of various types of construction, values of individual property characteristics such as an extra fireplace, an extra bathroom, a one car garage vs. atwo car garage, etc. This manual is usually very complete and presumably, any well trained, • if not professional , appraiser should be able to apply the elements contained in this manual to any given piece of property and come up with substantially the same value as another individual or appraiser. When a town is revalued by an appraisal firm, the accuracy of the individual values is probably less accurate than an individual professional appraisal , When a contract is given on a volume basis, the individuals employed, although well _10- trained, are not'as knowledgeable in the economics of any one town, in spite of this, through the use of the manual, a reasonably good job is done and the values throughout a town are determined on a reasonably consistent basis. Many cities and towns employ this method which supports the validity of its use. The 'prime responsibility of the Board of Assessors is to establish property values in a manner which is fair, just and proportionate, and to establish such • values at the full, fair and cash values annually as prescribed by the law. In its ap- plication, this means that all new property and any modifications and additions should theoretically be valued at its full current market value anj that all existing property should be adjusted annually to reflect its full and fair cash value. In the Town of Reading, a very close liason is maintained with the various town departments to insure that all road improvements, land improvements, property improvements and modifications are discovered by the appraisers and therefore included in the annual town valuation. With regard to property on which no modification has occurred, the procedure described by the Board of Assessors is that of visiting every street and house in the town at least once annually. This approach was presented as the basis on which property is revalued and maintained at its full, fair and cash value. In the analysis of the time required to perform such a task and the time available, it developed that the time available to any individual piece of property would average approximately five minutes. It is with- in this time period, therefore, that our Board of Assessors must review and up- date the valuations. In discussions with surrounding towns, there was no town in which the board attempted to see all of the property, for in these towns there was no contention that the full, fair and cash values of property were being maintained. Here lies one of the basic differences between the Town of Reading and surrounding towns. -II- • The Committee noted that land values were adjusted in 1970, on what appeared to be an across the board change. This matter was discussed with theBoard of Assessors in our last meeting. The rationale given for making this change was that it was an attempt to reflect the recent increase in land values generally. Of forty-five pieces of property analyzed, only five had changes made on the value of the structure as well as a change in land value. With reference to the • land value change, the total land value on these forty-five pieces of property amounted to $240,450, before the change. The change in value amounted to $23,525, resulting in a 9. 8% increase in land value. With reference to the total value of 7 these properties, the land value change as related to total value was 3°/. This change, and the procedure used, are not consistent with a basic premise established in discussion with the assessors. The value assigned to an individual piece of property although separated between land and house for administrative and billing purposes, must be considered in its total value and not in its parts. This is supported by this same requirement as applied to abatements. The recent change suggests that land increased approximately 107 and that houses did not increase at all . This change in land values in the Town of Reading in 1970 reflects a major difference in approach by our Board of Assessors and those of other towns surveyed. We found no town that made such a change in the year 1970. One town indicated an intention to make an across the board percentage increase on the total value of all properties in order to maintain their property at full , fair and cash value. • ANALYSIS OF PROPERTY VALUES AND VALUATION LEVELS In the questionnaire submitted to the Town of Reading and the towns surveyed, a comparison of sales data versusassessedvalue at the time of sale was requested. This information was received from only one of the towns surveyed. It is our understanding that this information is reported monthly to the State Department of Corporations and Taxation, however our Board of Assessors informed us that on -12- • advice of the Town Counsel , this information should not be provided. Review of the law, and discussion with competent authority, revealed that there is no specific prohibition to the release of this data and that such release is at the discretion of the Board of Assessors. In the absence of any information provided by our Board of. Assessors, sixty- six pieces of property were analyzed; The property analyzed represented substan- tially all of the sales made from the months July through October, 1970. These sales were compared to the assessed values on the books at the time of the sale and the results of this analysis are contained in --Appendix E. In discussion ' with the Board of Assessors we were advised that the comparison of '1970 sales data should be related to Jan. 1, 1g6} assessed valuations. We felt that- the selling price of a piece of property sold in 1970 should be compared to the Jan. I , 1970 assessed valuation. Further, the analysis of Information received from one of the towns surveyed, revealed that the monthly report filed by every Board of Assessors, gives the data on the same basis of comparison as used by the Committee. The results of our analysis indicate that the property values in the Town of Reading are at 76.6% of the real market value, as established by the selling prices of the parcels analyzed. The selling price of these properties varied, plus or minus, by an average of 10.8%. In discussions with the Board of Assessors, the committee was advised that a variation of 5% was considered acceptable. This of course does not imply that any individual variation over 5% is unacceptable but • rather that the variations should not average more than 5%. Our analysis indicates that such is not the case in that 66.7% of the sales analyzed have variations greater than 5°/. It is important. to note, however, that the analysis given in based on 66 pieces of property which is approximately 1% of the total pieces of property in the Town of Reading and about 1% of the total value of all property in the Town of Reading. Further, the analysis given is on residential property only and should not be related to other types of property. -13- The Board of Assessors, based on their method of calculation, have analyzed • 223 sales made in 1969, as compared to,the assessed value as of Jan. 1, 1970, 1 and the results indicate a valuation level of 80 to 85°/. Based on the general in- crease in property values in the past year, this seems consistent with the figures developed in our analysis. ASSESSING PRACTICES AND THE LAW • In a previous section the legal requirements relating to assessing practices were summarized and in Appendix A, they are covered in greater detail . In preceding sections the valuation procedures were discussed and in a separate section valuations of properties in Reading were analyzed. It should be easily observed that neither the Board of Assessors in Reading nor the Board of Assessors in any town are im- plementing the law as written, except where in any given year there is a total revaluation. The law covers two basic elements, namely the proportionate and fair valuation and secondly the valuation at full cash value. The basic premise used by virtually all of the towns and cities in Massachusetts is that although valuations are not at full cash value, they are at a just and proportionate value and therefore inequities in the distribution of the tax burden do not exist. As mentioned under the legal requirements there is an oath required annually that the properties listed in the valuation list sent to the State Department of Corporations and Taxation, are at full and fair cash value. " It seems that most assessors sign this oath on the basis that no one is complying and others refuse to sign in which case there • is a $10 fine. There is in fact a vast discrepancy in what the law requires, what the general practices are, and what the economics of any individual town or city will allow. If the law were implemented to the letter then the cost of the assessing department would be many times that of its present cost. This is recog— nized ecog—nized by every community, however the approach taken is usually not analyzed, as it is being analyzed in this report and it is usually not publicized to any great -14- degree. It seems that the whole matter of setting values involves at least to • some degree, a tacit agreement among assessors that the existing laws cannot be > implemented in any practical way. Assessors generally recognize that property values should be maintained at current levels, and at the same time they silently acknowledge that each piece of property cannot be re-appraised annually. The alternatives available are; • I . To allow assessed values to remain constant, which most towns do. 2. Make no attemt to revaluate each piece of property but make a general ' across the board Increase as one town has stated it intends to do. ' �. 3. Perform a complete revaluation. The procedure in maintaining assessed values in Reading, is not identifiable with any of the clear alternatives available. It should be pointed out that where assessed values are allowed to remain con- stant, the cost of exemptions allowed under the law continue to increase as the R real value of property increases. For example a $2,000 exemption on a $20,000 house gives a 10% tax reduction whereas if the property were properly assessed at full value of $40,000 then the tax loss would be V.. This difference in tax revenue is shared by all other taxpayers. r -15- PERSONAL PROPERTY TAXES • The law.prescribes. that all personal property be discovered, valued and taxed. Since there is a $5,000 personal property exemption, the value of property ex- ceeding this exemption is subject to tax. There are a number of people who file personal property statements annually and pay the Personal Property Tax. However, there are many thousands of people who do not file personal property tax statements that are not pursued in any way. The procedure followed in Reading is, as best as could be determined, the same procedure followed in most other towns and cities. What in fact exists is a silent agreement among assessors that this tax is im / practical. Assessors contend that the administrative cost of collecting the personal property tax equals or exceeds the tax revenue to be produced, which makes it impractical . ASSESSING DEPARTMENT COSTS The Table below indicates the total operating cost of Assessing Departments in the towns surveyed. The costs per parcel of property as well as the cost .per thousand of dollars of taxes collected, are shown for each town. COMPARISON - COST OF COLLECTING LOCAL TAXES - 1969 i H Parcels Annual Cost Total Taxes Cost Per Los[ Per i Town Of Property Assessin De t. Assessed Parcel $ 1000/Collected Reading 6610 41,258 4,862,000 6.24 8.49 Ninche sten 6400 31,365 8,065,000 4.90 3.89 Belmont 7600 35.750 7,349,000 5.23 5.41 Lexington 9700 35.550 12,306,000 3.66 2.89 Stoneham 5800 28,650 5,308,000 4.54 5.40 Burlington 5821 33,000 7,653,000 5.67 4.31 Wakefield 6414 37,507 6,479,000 5.85 5.79 -16- COMPARATIVE ASSESSORS SALARIES The Table below lists the 1970 salaries, paid to assessors in. the Lawns sur- veyed and indicates whether a full time appraiser is included in the assessing staff. COMPARATIVE SALARIES - BOARDS OF ASSESSORS f TOWNS SURVEYED Town Chairman Member Member Full Time Appraiser Reading lase 1500 1500 Yes _ Belmont 2100 1800 1800 ,Yes Wakefield 1334 1334 1334 Yes Lexington 3000 2500 2500 Yes Stoneham 2000 1800 1800 No Burlington 800 800 800 Yes Winchester 4500 2800 2800 No The committee agrees, unanimously that any attempt on the part of the committee • to determine a suggested specific salary for the chairman and other members of the Board of Assessors is beyond the scope of its mission, in its broadest interpretation. -17- CONCLUSIONS • 1 . As a result of the discussions held with the Assessors, review of procedures used in the Assessing Department, it was observed that the organization of the office for properly recording required information, is excellent. 2. The results of this report, however interpreted, should not be related to any evaluation of the professional skills of the individual members of the board, as appraisers. It could be fairly stated that the members of the board are highly respected among their peers. 3. In every town in which a revaluation has taken place, the professional firm which performed this revaluation leaves with the Board of Assessors, as part of their contract, a manual specifically preparedfor that town, and used by the firm In arriving at the individual assessed values. We get the distinct impression that this manual,_ is used to a much greater degree,_______ ' in surrounding towns than used in Reading. In other towns, for example, new properties are valued by means of the cost factors included in the manual„ whether the manual be current or seven or eight years old. The basis of this approach being that equitability will be maintained to the greatest degree possible without maintaining full valuation. The degree to which the Assessing Manual is not used in Reading results in a greater degree of judgment being used by the Board in arriving at final values. . 4. The public relations policy followed by our Board of Assessors, the manner in which they handle communications with other interested parties, the manner in which they choose to support the various actions taken, and most significantly the omission of communications on very important and basic matters, have all led to a public image which is less than favorable and contrary to the interests of the citizens of this town. -18- 5. The Board of Assessors should refrain from indicating that valuations are • at the 100% level, and should also. refrain from such statements as "we recognize that they might be less than 100VI when in fact the valuations are substantially below 100%. This misleading practice puts each tax payer at a disadvantage in attempting to come to some reasonable conclusion as to whether or not his property has been fairly assessed. • 6. On the basis of cost per parcel, cost per dollar of taxes collected, or total cost, the Reading Assessing Department is the highest of all towns surveyed. It is significant to point out the difference however between the highest total cost and an average cost is approximately $5,000. In the opinion of the committee the difference in costs of assessing, among towns, is significant only in reference to the effectiveness of the individual boards. 7. The Personal Property Tax, as presently administered, is grossly unfair to those filing and paying this tax. 8. The Assessing Laws, as they presently exist, are not being implemented by the Board of Assessors in Reading or in any town studied by this committee. Specifically, the full and fair cash value of property is not in fact deter- mined for each parcel annually as required by Chapter 59, Section 38 of the General Laws. 9. The laws as they presently exist, are not being implemented and it would be impractical to do so. Although this condition has existed for some time, • we find little evidence of efforts to change these laws. It is appalling that we have such a blatant divergence betweenthe law and practice, on a v statewide basis, especially in view of the number of competent people who have responsibilities in the area of local .taxation. -19- RECOMMENDATIONS As a result of the study and conclusions just presented, the Assessing Practices Committee submits its recommendations as follows: 1. In the absence of a complete revaluation of property in the Town of Reading, the manual provided by the professional appraisal firm, New England Survey, Inc. , should be used to a greater degree in setting the values for any new construction, additions, or modifications to present construction. 2. In periods between complete revaluations, any piece of property, which in the opinion of the Assessors needs review for any reasgh, should be reassessed with a full and thorough appraisal . This excludes a 5 or 10 minute appraisal performed from the street. Excepting those properties where inequities seem to exist and excepting total revaluation, any changes in value in any given year should be made on an across the board percentage change, equally applied to all properties except those whose ') value is determined on an income basis. If there are reasons why this type of change should not be made then the values of the properties should be allowed to remain unchanged. 3. In any year in which an across the board change is made, or if no change Is to be made, or if a total revaluation is to be performed, then this decision should be publicly announced by the Board of Assessors. 4. We suggest that the Board of Assessors, in a manner which they deem • appropriate, desist from the partial collection of Personal Property Taxes, or, enforce the law as written. 5. That the Board of Assessors review-carefully their approach to communications with other departments in the town, their policy decisions, their contact with the public, including the various organizations representing certain groups of citizens within the town, and determine if they might not take ' some alternative approaches which would improve their image in the town and somewhat ease what is in the first place an extremely difficult task. The fact that the Board of Assessors might not be the most popular group of individuals in town is easily understood. We suspect that un- popularity might exist, at least to some degree, for the duration of . property taxes. Mowever�we do feel there are certain approaches that could be used which would improve the image of. the Board of Assessors. Some of these approaches might include: a. Being more courteous to people entering the department and asking questions about their assessments. b. Most importantly, have a clear rationale for differences in value between any two properties, and attempt to explain these differences to interested parties, without requiring that "request for abate- ments'- be filed. The abatement procedure should be referred to and used where the explanation does not result in understanding or satisfaction,not as an initial and sole remedy. C. Make every attempt to communicate to the public any change which will be made in their tax bill caused by a policy decision. If an error is made which affects all tax bills, then we suggest that a public statement be made by the Board of Assessors and that such • a statement have a tone of apology in addition to the technical explanation. -zl- 6. This committee recomri nds that the chairmanship of the Board of • Assessors be rotated either annually or every two years, among 1 the member assessors. This procedure will allow a balancing of philosophies in the operation of the department, as well as a balancing of the unfair work load which the chairman usually bears. Thisisdone in at least one surrounding town and it would appear that such would be • desirable in Reading. The fact that any individual on the Board is not a professional appraiser, does not in the opinion of this committee preclude that individual from being the Chairman of the Board. - 7. The Board of Assessors, through the organizations to which they belong, the authorities to when they report, and other professional contacts they. have in the area of assessing and appraisal, should make every effort to sponsor changes in legislation which would provide agreement between the law as written and as applied. ACKNOWLEDGEMENTS The Assessing Practices Committee would like to thank the Board of Assessors for the time spent with this committee, and we sincerely hope that the Board accepts the comments and recommendations made, as the best positive conclusions this committee could reach, in the time allowed. We would also like to thank the surrounding towns surveyed, for their cooperation and assistance in this study. • Respectfully Submitted Assessing Practices Committee . November 16, 1970 m•Y`d IT APPENDIX A • LEGAL ' The legal basis for practices of tax aCopp of the ssessors is published Tin GENERAL LAWS RELATING To LOCAL TAXATION. A cover of this document shows the titles of chapters. OF iY;ASSACHUS=i 'S 07717_L? Ce e'::11'rori:::nn: •+_ ... . to T,,miea. I (aAi'il : "r:�i. �}:i:clatc'iaz l7carv. , C-i:1""" iiC 59. ls:cs.n+.cui of Lcc�l""as^=. ( S '.'r' �.8. CCl;cc:im: oI Lo• tt -- ud;r r'r:s I .1i 1:;'. 00:1. Exci,e on i7e�7,t t 1 0 ,0. ` in Lieu of Ci1:11'I'F1' &I. co 1r-I iTC 19. ^ naic ,r. C' C.t tPT.:it Ett l ' ' ' t CrAll-YER C1. o! n¢ M'cm C1!A:'TFM :0, C1I.17i ea: moi. U-- �• .• .•_ . • Srr: 0,1:0 F r . . r 1 The first part of Chapter 58 defines the duties of the State • Tax Commissioner and the Commission: ' S(,PLY\'I SION Of LOCAL TAXATION. SPcnoN 1. The commissioner of corporations and taxation, in chapters fifty-eight to sixty'-five B, inclusive, called the commissioner, may visit any town, inspect the work of in assessors and give thein such information and require of than such action as will tend to produce uniformity throughout the enmmonwcahh in valuation and assessments. He shall prepare and issue printed instructions in ass.ssors as a. guide ro them in carrying out saidI purpose, which shall be adapted to vury ing local circumstances and to dif- ferences in the character and condition of property subject to local taxation. • He may furnish to local assessors blank forms for use in valuing such property. He may cause an asscs6 r to be prosecuted, either in the county where said officer resides or in an adjoining county, for any violation of law relative to assessment of taxes for which7a penalty is imposed. He may appear before any court or before any board of county commissioners sit- ting for the abatement of toes,or before the board of tax appeals. He shill give his opinion to aises"Is and collectors upon any question arising under/ any statute relating to the assessment and collection of taxes, and may' obtain the opinion of the attorney general upon such question. He may perform his duties under this section himself or by his duly authorized representative. Chapter 58A, APPELLATE TAX BOARD, contains a statement of responsibility of that body for recommending changes in law: SECTtos 4. The Ward shall make to the general court an annual report containing such suggestions and recommendations for the amendment, al- teration and modification of existing laws relative to taxation and related matters, as it may deem desirable, and shall include in such report a state- ment of the number and type of matters handled by it during the preceding state fiscal year and the number of matters pending at the end of the year. Chapter 41, OFFICERS AND EMPLOYEES OF CITIES, TOWNS AND DIS- TRICTS (EXCERPTS) , covers election or appointment of town officers, including assessors and assistants. It contains this oath of office : SECTION 29. Any person chosen to assess taxes or to determine or to 'assist in determining the value of property for the purpose of taxation shall, before entering upon the performance of his duties, take the following oath: 1, have been chosen to assess taxes and estimate the value of properly for the purpose of taxation for the town(or city)of for the year(or years) I ensuing,do swear that I will truly and impartially,according to my best skill and judg- ll • , such taxes as I may during that time assess:that I will mensassess and apportion a - neither overvalue nor undervalue any property subject to taxation,and that 1 will faith- fully perform all the duties of said office. If he neglects to take such oath before entering upon the performance 1 of his duties,he shall forfeit not more than fifty dollars. r 2 is • The content of Cheater_59 is shown below: CHAP. 59.1 ASSESSMENT OF LOCAL TAXES. 31- CHAPTER 59. ASSESSMENT OF LOCAL TAXES. Be,. SOY. and mxn uan in are as- TO PERSONS AND PROPERTY SL'R)ECT :6. State, among • TAXATION, mmi—nns m ` t. < n case 1. 1ReaalT !'l. Ca - apryin eta-. i i Prnr1Y Wbj<at touanvm, of ncylm by gusto.. '. ). Reales n.lude boIJm t . ?8. Li.fdip of Iw . for ranot a )A. Reg torteofmunieipaLry med for mMr srsied or unpaid.et Nnvubhe purpnc NOTICES AND LISTS. )B. Land ri( rNlmon,mn<f Ibm a I by erl p. kxmrs m tssue notion Oldinny fill', =amrryruuoMn=n.1— tcoda me 1 Im'r arenm ac Vu . NI. A—werto furnib blank lits$. ` X. Pie line, )L Lso,to M.—I..ld by rill. I Pfopacla.-N.as perwna.mate. 32I .,wuion of Eol e )). Sita a•-e xarcn.r�ses W P.1e elan. m ' 1 - PERSONS AND PROPERTY EXEMPT formaoon 1.xnsun. `f FROM TAXATION. A. Sul—cm,q.wrlpw pm of mlpaCee. f N C,,.,.veop<nY arij P1111m sropLed 31 Lito be taken a<IWe unl¢t me. 5A, IRepearJ.l )6. 6unv1[of mlu<in defauh of lis, 1 )T. Estimate W be colo—e,aIl— PAYSIE]T IN t D F OF T.l]O\ } PROPE 11CIP LDFOBCL S. VALUATION r1l I.. - LILNldbyrPLRYVSES. )R Varalmn of pre hn'.sl.nl mtasmwn. r C Land MY 6Y aV ar tmn. <:,, as an 1". \Lmtlon of CTptlino. gbeL(oev=I<f WCfl,.0 ofland he JV. Vi: on f aebinrrY..iplI lP.1-1 T. RI m of calm nun of land MIJ of sms none and I......mmp=c¢, naerseunn of an. Aleppo to m(vrmeral miomPaire. TA Land aeVuoeJ onlw aft.Arman^ ar IVW, al. ief<Cte r and Itfeanpn tompan¢t to moss.etc. rocs$-N il, altty of M held wrlan.=vuN< U. Estimate tby c mmmmner m d[fach of hard.re—ae ocaL ACem an,T..mil plum. o hard rt.e ahcytea.Ap,. a ddol Blains.LISTS.TABLES AND EXCISE TAXON CERTAIN SHIPS RETURNS OF ASSESSORS. OR%ESS ELS. U. Vll t' s and wamearcm an made m { B. Im,.. to b,, <d .«.els . r m co"HnJ it,,to be opo rmlic. _ }s w fort arpme ,ads o la. Last I.habitants, eesIts and -si-rO of I. nsn nal[,able onlrmunx. as. cityorwan to mmisn bon4 to assayI EXCISE TAX ON FARM Al%L MALS. ,� Directorsi For o assessors m nal ills i. � FA Aomim-1offarm animam making I WHERE AND TO WHOM POLLS AND - nwk, f { PROPERTY SHALL BE ASSESSED. O. Assessors m Prepare table of appupa¢s I 1, IR<pealyd.l aid d`vosileop)annmllY with mmmir 1 IMI 1ReeylN.l usltc:.Deaem6tr assesimrnu, - H. L ; n "axnom —Mml. a8. Samssb I li T a of .c aed hand. a9. M Esso to decommissioner wmm eooi[s of.almon U. Value mf rtpe me s., no"'.+vets Eouts 'l, isl net .cry third 11 noel year. so(oa. 10. M mrpa¢on and .......Xi NE Bricks a mnie mc- Ne i. sI. Entemm�a v oc�t: Ra r artain n 1s. Ripnu o%enact wring tares. IR Tasanom of real n of deaNenL It, 52. Sul' [ f sort on valuation lis. Wily or heirs.em,.and contribution. Parld". IT. Tvation of«a1 estate of decedent if title diman(ul. It. COLLECTOR'S L IST AND WAR RANT. is. P<wnal estate, rnee[ and to xMm as 53. Commitment of tax list.for collection. <essed M. Form of ua list. • 19. Mon,rid.eve..,clonal proeny. 55. Warrant.contents and form. M flex warrant if o(1¢mal los',em. DUTY AND MANNER OF ASSESSING INTERESTASDDISCOCNTON TAXES. W. stagf.. mxvariavariants..a. n . TAXES, N. Duryorasexson M. care d farpaymentto a ofeaees.lnnast. E53. IR[xalell M. Tao discount toMnlov<a on.ties. )1. Amount of annu=l assessment. ABATEMENTS. 21A. Aunsors nolifY fimnnal oRuen in coin and twos, 59. Abetro my. 1 THE Nmices ofabremmts. W. R as f nal,menu. 23G Sep=n¢¢hw9 tae rates.Definitmns. 61. Conditions of b.amar. )a. Inter[. on debt for railroad mels ipuon 61A. Adequate distoveey W."Hesnt. has be m,Imh I in ym—m. 62 Peeparm<m of cases. 25. Awescors mar add rat moa m>n B.[per 61 rvrince o(aecmmrf tent to amount M annual asscssmtne, 3 r . a • Table ofcontents(continued), " _ AsSESSMEXT OF LOCAL TAXES. [CHAP. 59. 32 Stc,. APPORTIONMENT OF TAX ESON Stn. 1y[„n El-LI REAL ESTATE St OI\IIJIUEUI E ILl prdlae O.M1nd.Prwadi,;.a. lv. hm<m mG<aPMrim'Nm<a m, API<al U' apla'llam ua I^'+'J. hwc<J' w_ ioliulru pern`ns aff<«N F. aCMruum 65. mym inFa ulinC o` r<aU Pr"Krb fm K- 65A. Salt in I oprUuJ¢<Pry XL. Arl'eal from apryrlirmnwnl. Pa)mtm of u e a.ILLEGAL ASSESSVEVS. «Nrnya rm ann I. ILI, a w ingm • e5a. rnunma unl�[i,r-6,i n;a lue) P1.rAC . K.am[m IM-L! tx[PI IS. uc L,Lt nIIu)'If.ar+m arPvnla In tiIv Ar Ielbre T+a Bu+rJ. _ ADUrTIUFAL DFTIFStfn,,nSr o�RSt+'n 65U. Pru w .for aFe<mw[of ua!) WII tl). Ra[ m'6) mmm� aavau<J ESm!ue of[ r [ ln, in aaKa xMrt W., f« I'll I arIj a aIT .--I+<6i- 6 aJ< n a ,` ollvr+lc Pr.M1, 66. IR<C'a!aJ.l'<r 11—IPa-41 atc a+uK or Jimi—ISI nt. IRa1..+IdA H. Mw ... ... a 6Y. IR<«+IeJ.I _ P5. IR<C'a!N.1 'A, «aW,J.I< aD+t[,r,<m soh rum b_ N,c,wr+ w mal< rcmms or <aemW<J W a4ma<.L n[�nX PralwnY.«[. 'ry. Cenn.nc ofaNmmaml. . Pn.Nurc aNar ab:ann'm. R OF AFO(Oa1PE]SATIUS ]UA )1. Af'ammcn of un:olin'uMq 1a<ei «rt4 pF ASSF310RS. halwo to talk[ /l. ROMnaihLry ulaa¢awf<. r Anmm<m n. ,...... of<••mm�avumr yy. IRvrv+IN.I of u on bn1 (Ifmau0i[I<ns 131111 to m[<s[tlap<a.<n' r E\'AXION OF TA]ATIOV. RA. AI•+tammum Yrvl acYuircJ Xp atnun. W_ Profe'y'.ac.wmmMnmiK a+aoam<nt IT IRaIw+IN.I IOS«arty!<ns P<n+l'/eJ. 111«almcns nunGeJ of a'a •rp, Era n'ra3ftfU;[a -Iuld. ]a. Commivi^f[I,ul �an r urtPura,um m<6 '< <n+Jir<J. vdcm .K utlks fr iiK+u a, t yL FalK nrafnudul tot lrsm3i 1 y_, Rerowl, ere, o n ur t U\II RFIl A5Sl55aIF\15. o(mem+.ts[.1f<vlucJ. 75, hir yrs] mnuJrwvmrnl m h N,,,ECT BT ASSESSORS. ss<Jmp-omhr.ny. mymmJ q taw 16 Commrun.ner m+)nv,mnanJ roivnn of 15. Poilur< s aaKs oars 'mW,,", REASSE SS\IE\I (IF TAXES. ya, Yiulaurx'ori iJ6Jy.NP<rnlit[J. V. RtaaK— ILL nfla.[+. )tl. Collmuon n(m+avza<J ua<a. The following excerpts are fron Chspter 59: SECnON 36. ASSCS9O(s shall ascertain as nearly as possible the particu- lars of the personal estate, and of the real estate in possession or occupation ' person not bringing in such list, and shall i as owner or otherwise, of an} Ito their best information estimate its just value,according ormation and belief SEc ws 37. Such estimate shall be entered in the valuation book, and, - except as provided in section sixty-one,shall be conclusive upon any person not seasonably bringing in such list,unins he shows a reasonable excuse for the omission. - - • VALUATION'OF PROPERTY. SECTIO, 38. The assessors of each city and town shall at the time ap- pointed therefor make a fair cash valuation of , the assessors may,estate realn n per- pointed Soul, subject to taxation therein, and, in cities, year,divide the city into convenient assessment districts. r a 4 • Excerpts from Chapter 59 (continued) ' BOOKS.Lis'5JAOLES AM)Rr7uans or Assussoas. $ELTION 43. The assessors shall make, . the books furnished th prov- ided in section forty-five,a list of the valuation and the assessment thereon, - rtion, if any, of the in the folbwing manner: In each column provided in the balk or boo S . furnished shall be entered the valuation fa that FSo personal prop fly of each person and corporation,indicated Shall ty the heading - therwithoTile ut otherld ttil or spec li<atiiion thansIs if iJttI for hcre u.s6efurc butd there is no office, with I cl, the taxes arc t r cttit for collection they shall deposit the books, or an • a attested copy thereof, in their office or, chairman, for public inspection• SEcnor: 44. The list shall exhibit the valuation and assessment of the estates of the inhabitants assessed; and the valuation and assessment of the estates of non-resident Owners, and shall contain the names of the non-resi- dent owners of the property assessed, or such dcuription of them as can be / given, their places of abode, if known. the description of their estate, the true value of such estate,and the tax thereon. SLCr1UN 45, Each city or town shall provide,on or before January first, annually, suitable books, for the use of its assessonfurin me assessment eadings Of taxes. which shall contain blank columns. l valuation list, and blank tables for aggregain form as the commi tes, s- a sinner shall from time to time determine or app sLLTluv 47. The assessors shall fill up the table of aggregates by an . enumeration of the necessary items included in the lists of valuation and assessments, and shall annually,on or before July first, deposit in the office of the commissioner an attested copy of the same. SEcca3. 51. The assessors shall enter upon the valuation list, in the appropriate columns after the enumeration of the persons and estates liable to taxation therein contained,a statement and description of all the property and estate,with the fair cash value thereof,which is exempted from taxation , in their respective towns pursuant to the provisions of the first fifteen clauses of section five, or for the reason that it is owned by a county, city, i town or district and put to a public use, with the names of the persons or j corporations Owning the same and the purpose for which it is used.and with i a reference to the law,if any,by which such exemption is allowed. IBN,_71 L it L 12.16i. 19D.JI I. P.S.r.i 5N. 1".Jw,1,163. SPrnos 52. . The assessors,or other persons authorized to assess taxes, shall,at the end of said valuation list,subscribe the following statement: i we, the assessurs (or other persons so authorized, as the eau may be.) of ,do severally sue,that the foregoing list is a full and truc list of the names of all persons known to us,who are liable to taxation in (here insert the name of the city ur town.)during the present year.and that the real and personal estate eumained in said list.and assessed upon each person in said list,is a full and accurate assessment user,all the property of each per- son, liable to taxation, at its full and-fair cash value. according to our bust know led a and belief This xa!ement is made under the perallo;s of perjury. Mi.gt 3 P.s. l 1.l 59. j"Suss,.P0- R.5.15.p 15. R.L.!'-,i 65. ItlS).Le.9-. I..JW.I.i M. N)x1ass 3D. G.&1 .13;. Mai.14.15. W.M..3E6. Failure to subscribe the foregoing statement shall not invalidate a tax - otherwise legally assessed; but %-h ver assesses taxes in a town without having subscribed the same shall be punished by a fine of ten dollars. 1857.3m p p 1.s R.L Q 166 )1711. 09. G.S. 11.137. Po65 1".4 .t•p M. so!lass.IJ6. P.5.11.3 W. 1928.1{*5. OnN orOffic'.eNp.JI.p N: nail,fur fad valuation.130. 5 APPENDIX B June 24, 1970 • SURVEY DATA ASSESSING PRACTICES COMMITTEE READING MASS. FOR THE TOWN OF COMPLETED BY DATE APPROVED DATE Chairman, Board of Assessors • n APPENDIX B • 1 Dear Members of the Board; We respectfully request your assistance in the completion • of the attached questionnaire which is submitted to you as part of a study being conducted in the Town of Reading, by the Assessing Practices Committee. The purpose of this study is to evaluate the assessing practices in the Town of Reading. A significant portion of this study will include the comparison of basic data developed on . selected surrounding towns and the Town of Reading. The information submitted will be used in our final report, however, the presentation will be coded in such a manner that the data submitted will not be identifiable to an individual town. Recognizing that the comparative data will be of sig- nificant interest to the Boards of Assessors who participated in this study, it is our intent to provide each participant with a copy of the final report. We appreciate your assistance in this matter and we feel certain that the resulting report, which you will receive, will more than justify the time and effort required to complete the survey. Respectfully Submitted Assessing Practices Committee • Town of Reading r APPENDIX B Page One GENERAL - As of Jan. 1 , 1970 Number of Residents Number of Assessors Salaries Per Year (Please use current salary) Chairman 2 3 4 5 • Total Hours Spent Per Year In Fulfillment of Board Duties Chairman 2 3 4 5 Number of Assessors Who Are Professional Appraisers Total Annual Cost of Assessing Department 1967 1968 1969 What % of Total Fair Market Value Have Assessments Been 1967 1968 1969 What Was Total Assessed Value of Property 1967 1968 1969 What Was Total Amount of Taxes Assessed 1967 1968 1969 What Was Tax Rate 1967 1968 1969 How Many Personal Property Statements Were Filed 1967 1968 1969 What Was Value of Personal Property Statements Filed 1967 1968 1969 What Was Number of Exemptions Allowed • 1967 1968 1969 What Was Value of Exemptions Allowed 1967 _ 1968 1969 r APPENDIX B Page TWO • ANALY$IS - 1969 ASSESSING COSTS (1/1/69 thru 1/1/70) SALARIES Salary Expense - Board Members Salary Expense - Full Time Appraisers (Indicate salaries if more than one) • Salary Expense - Clerks I (a 2 (a 3 (a 4 (a Total ! Clerical Total Salary Expense Professional Appraisers Fees Legal Fees Abstract and Title Fees Data Processing Costs Other Purchased Services (Please Describe) Administrative Expenses (Please Show Detail) • Other TOTAL COST - ASSESSING DEPARTMENT APPENDIX B Page Three VALUATION • ' 1 . PLEASE DESCRIBE IN AS MUCH DETAIL AS POSSIBLE THE METHOD USED FOR THE DETERMINATION OF VALUE, AND VALUE CHANCE FROM THE PREVIOUS YEAR, FOR A RESIDENTIAL STRUCTURE WHERE NO IMPROVE- MENTS HAVE BEEN MADE AND NO PHYSICAL DEPRECIATION OF THE PROPERTY HAS OCCURRED. • APPENDIX 8 Page Four • 2. WHAT PERCENTAGE OF ALL PROPERTY IS PHYSICALLY SEEN BY THE BOARD T PLEASE EXPLAIN THE METHOD AND FREQUENCY. • 3. IN THE PAST THREE YEARS HOW MANY PIECES OF PROPERTY HAVE HAD A CHANGE IN VALUATION? 1967 1968 1969 4. WHAT IS LAST DATE OF COMPLETE REVALUATION ? WHAT WAS COST OF REVALUATION ? PLEASE DESCRIBE REVALUATION SERVICES (e.g. maps, assessments, value determinations, etc.) 5. PLEASE PROVIDE DATA AVAILABLE SHOWING COMPARISON OF SALES VALUE OF PROPERTIES SOLD IN PAST SIX MONTHS COMPARED TO ASSESSED VALUE. • r APPENDIX B Page Five • ADMI NJ STRATI VE I. PLEASE DEFINE THE RESPONSIBILITIES OF THE BOARD OF ASSESSORS, WITH SEPARATE REFERENCE TO STATE AUTHORITIES AND LOCAL AUTHORITIES. • 2. PLEASE DESCRIBE THE RECORD KEEPING SYSTEM YOU UTILIZE WITH PAR- TICULAR REFERENCE TO THE DOCUMENTS USED, VALUATION RECORDINGS, RECORD UP DATING, HISTORICAL FILES, MAP SYSTEMS AND SYSTEt FOR CONTROLLING VALUATION CHANGES AND ASSURING RECONCILIATION•OF DETAIL DATA WITH SUMMARY INFORMATION. 3. PLEASE PROVIDE SAMPLES OF FORMS USED. 4. PLEASE DESCRIBE METHOD AND RESULTS OF USE OF MECHANICAL OR ELECTRONIC DATA PROCESSING EQUIPMENT. 5. IS A COMPLETE LISTING OF PROPERTIES AND VALUES PUBLISHED AND DISTRIBUTED TO ALL TAXPAYERS? IF YES, PLEASE ATTACH COPY. IF NO, DO YOU RECOMMEND ? DO YOU INTEND TO DO THIS ? APPENDIX B J Q O r- G Q t7 N O 3 Z JO J s LL J W 6 F v w w � z � o z u 6 W J v Q J Z d W O r� N W W P � Q W Q O C Z z g W J Q u F J 6' J O J v W Q LL J 6 W W Q d d ✓ 6 W Q d Q Q Z U O m m W O O W O O Z W W G J W W O Z C J W QdZ' Q Z d W QdZ' Z N f N LL J Cy d' 6 6 U � V1 7 y LL f'J Q U' N N N Q W 2 W Z W Z W Z W 2 �- J C W Q f Q t• 6 F- 6 r- Q H � N 0 Q 0 Q f0 Q O] Q m Q d d m Q Q Q < Q Q Q Q Q 6 J LL N LL LL LL LL LL J £ J £ J £ J £ J -- . APPENDIX B J 4 r O r ® W r O J Q r U• N Z Q J J W W p £ > O o u , s a W J N Q W r J z 6 W p m ,D N P � Q Y Q p p ZQ W •J J 4 u w — x r J 6 v J p J v W Q LL J d w 6 W Q d L J p W O O Z W Yl C J J r W Q ? U LL LL O U Q W N N N N N J > S W S W £ W £ W S W d C N ¢ r ¢ r Q r 6 r ¢ r m Q m Q m 6 m Q m Q v a w ¢ Q ¢ Q ¢ 6 ¢ 6 ¢ 6 O q O p O o O o O o O o C W J W W W W W W W W W W £ r S J = J £ J E J S J •i - I APPENDIX B. J � Q O W ' IS- O r f (9 N Z � p • � Z O J J O % LL J W Q S r w w O • E > o o u c d W J Q Q W f - d p 6 W y ¢ o p z W 5 J Q U r IL w Q d d L Z U lor Yb v m i O ✓ p 61 W p W 2 W Z W 2 W Z W Z d W J W W W W W W W W W W APPENDIX C • Septec6er 25, 1970 • Mr. Donald T. Wood, Associate Commissioner Massachusetts Departrant of Corporation & Taxation Division of Local Taxation Boston, Massachusetts Dear Hr. Wood: Attached, for your convenience, you will find a copy of the letter I sent to you on May 29, 1970 of this year. Shortly after sending the letter Ralph Horn, mentioned to re that he had discussed the letter with you and that 1 would be advised shortly thereafter, regarding the requested meeting with you. In view of the time elapsed since the date of my .letter, I ' would appreciate your reply regarding the requested meting as we are attempting now to assemble all of the data which we feel pertinent to our study. As mentioned in my previous mem to you, we would appreciate very much the opportunity to met with you and to be given the benefit of the data relating to the Assessing Practices In the Town of Reading. Yours truly, Joseph H. Picaao, Chairman Assessing Practices Committee • 87 Gleason Read Reading Mass. Phone: Home: 94+-5372 Work: 658-6600 JHP/meo cc: Mr. Ralph Horn, r APPENDIX C • May 29. 1970 Mr. Donald T. Wood, Associate Cor..issioner Massachusetts Department of Corporation 6 Taxation . Division of Local Taxation Boston. Massachusetts Dear Mr. Wood: - At our annual Town Meeting, In March 1970, Article 58, which received a favorable vote, authorized the Selectmen to appoint a committee of five citizens to review current assessing practices and report to the next town meeting. As Chairman of the Assessing Practices Committee I met last week with the Board of Assessors to discuss and develop with them the procedural approach to be taken in this matter. The Chairman of the Board, Mr. Ralph Horn, and his,associates, Mr. Frank Stevens and Mr. Robert Nordstrand have demonstrated a spirit of cooperation which will substantially ease the burden of the committee in developing the necessary data. In my discussion with the Board of Assessors, it became quickly apparent that the Division of Local Taxation, In view of its statutory authority and responsibility in the administration of local assessing practices, is most probably the best source of information relating to this study. I recognize of course that there are legal considerations which would limit discovery of this Information however, in view of the task at hand, we would appreciate your assistance in this matter, to whatever extent practicable. 1 am sending a copy of this letter to Ralph Horn, which 1 advised him 1 would do. I would appreciate the opportunityto meet with you, together with Ralph Horn, to explore this matter further, as soon as • your schedule will allow. Joseph H. Picano Chairman, Assessing Practices Committee 87 Gleason Road Reading, Massachusetts 01867 JHP/meo cc: Mr. Ralph Horn APPENDIX D - May 12, 1970 . Reading Tax Payers Association Reading, Massachusetts • Dear Mr. Doughty: As you know, a cormittee designated -Assessing Practices Committee" has been appointed by the Board of Selectmen, by authority of Article 53 as approved at the March Town Meeting. - It is the understanding of this committee that the Reading Tax Payers Association was one of the principal sponsors of this article and therefore has a vested interest in the audit to be conducted by the Assessing Practices Committee. It is the intent of the committee to proceed on this matter on as objective a basis as possible. The first task of the committee is to establish as clearly as possible the "problems" as viewed by the citizens of Reading. The Reading Tax Payers Association obviously represents a group of citizens who are most interested in this matter specifically. In this regard, vie ask your cooperation in assisting us in the definition of the problem and in providing us with whatever data and information would be pertinent to the subject at hand. r . We have received and reviewed the program submitted to the Board of Selectmen by Mr. Doughty and Mr. VanHorn. The "Instructions for the Assessing Practices Cormittee" covers a number of significant points which_ are of course necessary to the analysis of the assessing practices. Before this committee proceeds in the determination of "what to do" we feel it is our responsibility to establish on a more definitive basis the basic problem as seen by the sponsors of the article. If this is not accomplished in some degree of detail , and in writing, then of .course the conclusions and report of this committee • will be less than effective no matter how well researched. We recognize that the basic purpose for the existence of your organization is of course directly related with the matters to be reviewed by this committee. We also recognize that individuals within your organization as well as the organization itself have already spent much time in the development of pertinent data as well as correspondence with various parties, including the Board of Assessors. This committee would like to take advantage of all information, knav- ledge and correspondence, insofar as the obvious requirement of objec- tivity Cs satisfied. _2. • ' We look forward to meeting with either the officers of your organization, or officially appointed delegates. However, I believe such a meeting would best be conducted after the committee has had the opportunity to receive the information requested and to review it. In the meantime, however, if there are any questions on this matter please do not hesitate to contact me either at my hone (944-5372) or at my place of business (658-6600) . • Yours truly, Joseph H. Picano, Chairman, Assessing Practices Committee / JHP/meo • APPENDIX D 87 Gleason Road Reading, Mass. 01867 May 18, 1970 • League of Women Voters 161 Prospect Street Reading, Mass. Attn: Mrs. John Celhar, President Dear Mrs. Celhars The Assessing Practices Committee has been advised that the League of Women Voters has had some direct interest and Involve- ment in the matters to be reviewed by this committee. In the Interests of determining the nature and extent of current problems relating to assessing practices, as viewed by Interested citizens, we would appreciate receiving written comments from your organization, describing your observations on current assessing practices and the basis of these observations where possible. We look forward to hearing from you as soon as possible, as the committee is currently In session and proceeding with its assignment. Yours truly, Joseph H. Picano Chairman, Assessing Practices Committee JHP/rroo I,� APPENDIX D THE READING TAXPAYERS ASSOCIATION Reading, Massachusetts 01867 Tuly TI, Yr. Tosenh 7icano, ^ --air an Assessing Prs;ctic=s ^,.r.---ittee 87 Gleason Road Reading, '--ase Dear '.r. Picano ; • on behalf of the "ending -a:-gayers Assn. 7 wish to anologise for our dela:, in renlying to your letter of "ay 11th. '.4e feel t'at the instructions referred to in yoyr letter do Ire>ty nu--% cover the points that should be delved into by your coniittee. —r,,ever our rain concern is that in s7ite of money alV the =hent for re-evaluation and the e--nloynlent of a full time a7?raisor, t,:ere still annears to be a great nany inequalities in Readin ' s valuation. 7e ferl that sons where along VIP line, the asse€sore should have devised a basic forn- ula that is public in.forr,�tion to all of the tax payers so that each individual can determine in his amn mind that he is being assessed fairly. our slot check of the assessed value of lost residential Property in Re,-,ding compared to its actual sales price indicates that Reading is no*here near the 111,1 valuation clained for it by its assessors. Several nenbers o1,. our organization have expressed a desire to meet ^ith your 'co—,ittes. -!e. hone that this can be set un right after labpr day. "ours ^ruly; . uQ x/ President APPENDIX ��Dpp • oLealue ©� yl�oirze2 `oCere .�eadra�, �U.�.1ao�zna!! 09867 May 24,1970 • Mr. Josegh H. Picano 87 Gleason Road Reading, Mass. 01867 Dear Mr. Picano: Thank you for thinking of the League,during your analysis of the various problems connected with the assessing situation. The League has had a two year "Land Use Study".Our local study dealt with use not valuation of land. - Although we would welcome being of assistance to your committee, we feel we have no pertinent information to offer. Since Of one of the to sti ulatescitizenthe participation on in government ,I must you and your comimittee you are to be commended for your involvement . Your work will be a real service to the people of Reading. Sincerely, II Mrs. John M. Celehar President . 161 Prospect Street APPENDIX E • ANALYSIS OF SALE PRICES VS. ASSESSED VALUE . Period Covered July through Sept. 1970 Number of Parcels Analyzed 66 Total Sales Value $1 ,902,870 • Total Assessed Value $1,458,375 % Assessed Value to Sales Value 76.6% ANALYSIS OF INDIVIDUAL ASSESSED VALUES / VERSUS SELLING PRICE USING 76.67 AS NORM Example: Selling Price = $40,000 Assessed Value= $30,000 % Valuation r $.30 00000 = 75% 40,665 Deviation = 76.6%-75% _ -1 .6% Plus Deviations Minus Deviations Total Range Number Range Number Number over 25% 1 .over 25% 3 4 X 15 - 25 5 15 - 25 2 7 10 - 15 6 10 - .15 3 9 5 - 10 13 5 - 10 ll 24 o - 5 14 0 - 5 8 22 . 39 27 66 Average Deviation $um of Individual Deviations Number of Parcels = 613.3 1o. 8% 66