Struggling homeowners feel the pinch as Mass. communities try to make ends meet
Despite dropping home values, Massachusetts property tax bills continued to rise last year.Revenue-hungry cities and towns, looking for money to pay for new buildings and to maintain services, have continued to push up local taxes, often asking voters to approve property tax overrides even as real estate values drop further.
The double whammy of lower home values and higher taxes — a phenomenon that has hit Massachusetts homeowners for several years — frustrates taxpayers as they endure the rocky economy.
“There’s absolutely no way you can sell a house in Dedham for what it’s assessed at,’’ said Janet Gorman, who has lived in the town with her husband for about 30 years.
The couple, who own two single-family homes and rental property in town, sought a tax abatement on one of the rentals and got about $900 knocked off their tax bill.
“And is Dedham any different than any other town? Probably not,’’ Gorman said.
The average tax bill on a single-family home in fiscal 2010 increased about $140, a 3.3 percent increase, according to figures released this month by the state Department of Revenue. The average tax bill for a single-family home was $4,390.
The statewide home values, which have more than doubled since 2000, peaked in 2007 but dropped about 4.6 percent last year to an average of $373,702.
Taking a longer view, both taxes and home values have risen over the last decade. Since 2000, average property taxes on single-family homes in Massachusetts have increased about 64 percent.
State and local officials defend the tax increases, and lower values.
“Not only is the 3.3 increase the lowest in 20 years, but it also marks the first time in at least 20 years that the annual percentage increase has gone down for four consecutive years,’’ said Bob Bliss, spokesman for the Department of Revenue.
Local officials also point out that property assessments are a snapshot of values from a year or two ago.
Rick Henderson, the assistant director of assessing in Dedham, pointed out that assessed values for fiscal 2010 are based on a home’s worth on Jan. 1, 2009, which was determined by home sales in 2008 in that community. A home’s actual value — different from its assessed value — might have changed significantly over the last two years, he said.
“The taxes are high and I think everybody’s taxes are high,’’ said Jeanette Geller of Needham, who has filed for abatements at least three times in the 50 years she has lived in her split-level home. She recently won an abatement of nearly $400. Overall, property values dropped in 281 communities for the fiscal year that ended June 30. Hardest hit were Brockton, Revere,, Lynn, and Rockland, where values were clipped at least 14 percent.Continued...
Matt Carroll can be reached at mcarroll@globe.com and followed on Twitter @GlobeMattC.
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