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Boston property taxes: Here we go again?
By Stevil on Wed, 01/02/2019 - 8:42pm
After a long pause in property tax increases, just got hit with about a 6% increase for 2019. Guessing higher interest rates have driven commercial values down and thus residential taxes have to go up to make up the difference, but can't tell until the numbers are released from assessing.
Any other reports from the field? 2019 taxes are available on https://www.cityofboston.gov/assessing then click on "Assessing on line" to go to the search page.
Usually there's a December article in the Globe, but apparently not this year?
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Comments
Up up
Just got ours in the mail as well - up about 6%. In fact, your post prompted me to finally open the bill that has been sitting on my table for two days! Yikes.
Paying for what you didn't pay for before
Part of the problem is that anti-tax hoohaw for too many years meant that nobody paid enough taxes to keep things going.
We are paying a deferred bill for baby boomer/"greatest generation" whining.
Please go on ...
You seem to be an expert on the City of Boston's property tax assessment process.
Please go on.
PS. Do you even live here?
20.8 % Increase
Triple Decker In North Dorchester (St. William's Parish):
The tax bill increased 20.8%
valuation increased 15%
residential exemption increased 6.5%
taxable valuation increased 20%
The tenants will be paying $900 more this year just to cover the tax increase. This doesn't help to keep rents low.
Residential Exemption Filing
Hey UHUB,
Long time reader, just last April finally stopped renting and have purchased in Boston. Got my tax bill yesterday. Supposedly the residential exemption applications for FY '19 became available yesterday (still not up on the assessor's website though). My tax bill shows my first payment is due by 02/01/19. Anyone have any idea, if I submit the form today, supposing I qualify, will my bill change before the February 1st payment comes due?
The assessor's site says FY '19 is July 1, 2018 through June 30, 2019. So do I still have time to qualify for this period?
Thanks for any help!
Yes, you should qualify as
Yes, you should qualify as long as you closed before July 2018. HOWEVER, getting your lender (if taxes are escrowed) to adjust the payment probably won't happen until your next annual escrow review.
https://www.boston.gov/departments/assessing/filing-property-tax-exempti...
I would give them a call
They're pretty good at helping you if you call. 617-635-4287
Res Exemption
As long as you owned as of 1/1/18, you will qualify. Otherwise you'll have to till 1/1/20 to apply.
It used to work that way but
It used to work that way but they changed the rules "A recent home rule petition expanded Boston's residential exemption. Homeowners who obtain their homes before July 1 may now qualify for the current Fiscal Year. This means that, for Fiscal Year 2019 (July 1, 2018 to June 30, 2019), homeowners who recorded a deed at the Suffolk County Registry of Deeds before July 1, 2018, may be eligible."
Not yet
My understanding is that the residential exception is actually a rebate towards the end of the year; you'll need to pay now, but you'll get some of it back after the 3rd quarter. But that may be because I pay my taxes into escrow with the mortgage company and they pay on my behalf. (I'm also a new owner this past year; still figuring out the particulars!). The city did send me something last year which I indicated that yep, this is my primary residence and which month I became responsible for the property taxes. I will also be going to the assessor's webpage when I get back from vacation to fill out more paperwork to make sure I get my rebate!
Not sure how the bank handles increases in assessed property taxes. Will have to figure that one out too, I'm sure! :)
Exemption
I purchased in late Jan 2017, before the rule change in 2018. So for the first year in my condo, I paid full property tax. This year, for the first two quarters, I again paid the full amount of the estimated taxes. Now that my Res Exemption kicks in, I am fully paid through the end of the FY and have about $1k in credit with Assessors Office as overpayment.
Now I open the discussion with the mortgage folks to see if the substantial reduction in taxes can trigger a new escrow analysis and adjust my monthly so I can divert the previous tax escrow I was budgeting into making additional principal payments.
Call your mortgage company, ask them when you are scheduled for your annual escrow analysis. Mine was in August, but was told I could revisit mid-year if there was a substantial change.
this happened to me
My first escrow analysis was like 500 a month. I called them and they froze it long enough for me to get the adjusted bill. I still got a 600 plus reimbursement the next year. I called my mortgage company yesterday because now my escrow payment is so low I wont have enough to pay the bill. But they haven't received the new numbers. I got the paper bill last night. I underestimated what I read online. My taxes have doubled, which might be perfectly fair but it is jarring.
Do you have to an appraisal to appeal?
If I remember correctly I had
If I remember correctly I had to live in the property for a year before claiming the residential exemption.
Yes
As long as you own your property and deem it your primary residence as of January 1, 2019, you qualify.
Thank you!
Thanks everybody, you've been a big help!
I called the assessor's office and they were helpful as well. Apparently I should have filed right after I moved in, so I will have to pay the full amount for the first two quarters but will it will balance out in the last two. My mortgager will pay the full amount (despite my escrow balance being insufficient) and will call on me for the difference when they reassess in July. Glad to be done with renting, but it would be nice if there was a manual for all this new homeowner stuff.
Thanks again!
my $.02
What I find frustrating is that they don't release why the valuations changed which makes it very difficult to contest it (was it my electrical permit or just land value?). They also don't make prior years tax statements available so you have to keep on hand the paper copy they send you annually showing the rate breakdown (which also means you only have it available to you as soon as you buy a property but not before).
The annual announcement should come with a 5 year look back (and tax dollar amounts and rates) and a description of why things have changed, not just your new tax rate. And the website should include actual tax dollar amounts, not just how much they think your property is worth (i.e., assessed).
Finally, is there a description somewhere describing the rules of how they even measure your property (i.e., square footage, and room count)? It's never made any sense to me even looking at the assessors plan and field card for my house (I have 6 rooms that might qualify as bedrooms - they all have a closet - but two of them have never had heat as they are in the attic yet my house is assessed as a 5 bedroom. And are kitchens and bathrooms and foyers included in room count? What about butler pantries? I can't make any sense of it as there's no break down).
Edit: Oh, and my wife is pissed the annual mailed statement only includes my name on it (who knows why).
Try Zillow
If you lookup almost any address in Zillow you can see the actual tax history and assessment each year for the past 10 years. It's pretty handy.
tax history
Here's a history of property tax rates, and I know the assessing page has at least 3yrs of assessments on your property.
https://www.boston.gov/departments/assessing/how-we-tax-your-property
Thanks
Thanks Bdog, that's interesting. I own a property in another state and this is provided as part of available online records from the assessing body.
Bguy, the how we assess your property page is pretty useless except for the tax rate history link. I don't see any 3-year look back on the assessing page (it has 34 years of old assessed values). I can find two years worth of invoices via the "view quarterly tax bill" link.
3 year look back
If you go to the page for your actual unit/property, it has your last 3 yrs of assessed value.
The page i linked to was for the tax rate history, nothing else.
Try Zillow a different way
Zillow is more useful for looking at comparable sales. In Zillow, filter your neighborhood by "Sold" properties and look for similar properties sold in 2017.
Current assessments are determined by comparable arms length sales. For reviewing past assessments, you're better off using the city website.
FY 19 Property tax
Residential valuations rose by 7.75%. Last year they increased by 6.87%
Residential properties will pay 39.48% of the FY 19 levy. Last year they paid 38.55%.
Non-residential valuations rose only 5.26% in FY 19. In FY 18 they increased by 7.05%.
In short, residential valuations rose faster than commercial/industrial parcels for FY 19 and will pay more of the total tax levy.
On the plus side, the owner/occupant exemption went up to $2,719.09 from
the FY 18 exemption of $2,538.47.
Thanks to all
For posting (and to Adam for putting this out there)
This is the best answer I've found (Greg - is this updated on the assessing site? didn't think they had this available yet but I'll look - sounds like it came from the "facts and figures" section).
Bottom line - as almost always - Boston's total budget will increase about 4-5% in FY 2019 - the current fiscal year ending June 30. Almost all of this extra revenue will come from property tax - about 2.5% from the maximum statutory annual increase on existing property and the balance from new property. Per Greg's post - it looks like the average residential property tax in Boston will go up about 5%. Half of that is because we will pay last year's taxes - plus 2.5% and the other half is due to the 2.5% increase in the proportion of taxes we will pay - roughly - maybe a little less due to all the new construction going on.
Here's the big rub - we have been in this magical fairy land of extraordinarily low interest rates. those low rates keep all property values artificially high - but especially commercial values. If interest rates start spiking (little worries for at least a year - as interest rates eased up a little last year but didn't spike), commercial values will drop like a stone - and so will commercial taxes. Then residents have to pick up the slack. Somehow we've danced between the raindrops for the past ten years and at least one more. If high deficits and tighter monetary policy around the world start driving up interest rates - put on the galoshes and hold on to your hats (and your wallets).
Name on Statement
I would guess your name is the first one listed on the mortgage? I believe that's how it is on ours. Interestingly, my husband is not pissed about not being named on the statement, lol.
Yes, they list the first person only
When we first purchased our house, the mortgage was only in my name because it was how we had to do it at the time. The closing people said they'd put both names on the deed but it didn't end up that way. I don't know; this was years ago and I just went along with what they said they'd do. For our domestic partnership registering thing we needed proof we had a house together, and spouse needed proof of residency for a few things. Putting utility bills in spouse's name didn't seem to do it. The city tax people suggested changing the property tax bill to be addressed to"eeka, c/o eeka and spouse," which was surprisingly acceptable to everyone to whom either both of us or spouse needed to prove residency.
Ownership data comes from
Ownership data comes from Suffolk Register of Deeds. For jointly owned property, the numeric ordering of owners is arbitrary when the deed is recorded. Mail subsequently gets addressed to the "first" owner by the city.
After a long pause...
... in property tax increases, just got hit with about a 6% increase for 2019.
Just a thought here, but maybe that long pause explains the sudden increase? If instead, it had gone up 1% each of the past few years, perhaps we would not have noticed.
Isn't it more accurate?
My assessment went up 21%, but it still seems like I could sell my condo for more.
Question, how do condo's compare to one owner buildings? It says that I can appeal because of the valuation of comparable properties but my neighboring buildings which are both valued less per square foot have single owners. Obviously you can sell it for more by dividing it up, but should that be included in the tax assessment? Upstairs and Downstairs from me have remodeled. I would like to, but haven't yet.
Overall, my housing expenses are very cheap. I am paying less than my last rent before I bought the place. I cannot imagine how my younger co-workers can afford to rent, much less buy.
So unfair
The city isn't doing nearly enough to reduce the value of my property.
Here’s a money saver
The City can save a ton of money by not spreading tons and tons of rock salt on the roads in Savin Hill every time there is a threat of a dusting of snow.
Tell Public Works the Mayor doesn’t live in Savin Hill.
Call me crazy but I still
Call me crazy but I still think our taxes are pretty cheap. For $2500 a year I like that my garbage gets picked up every week, snow is plowed, etc, etc. Pretty good deal to me.
More than garbage
Trash too!
The breadth of what they’ll toss in the truck in this city is unusual.
You've got a first world problem
The mil rate only changed by 0.005% (10.54 vs 10.48 per $1000). Most of the increase is because your property value shot up by 5.995% from 2017 to 2018.
Comparison of sample 2014 and 2019 tax bill
Stevil, I was very surprised to see what had happened with my old condo in the South End.
Although value has skyrocketed, the property tax rate and the residential exemption have increased so that I'd only be paying $168 more, annually, even including the new CPA tax surcharge.
This isn't what you're seeing?
Assessed value vs. real value
Single family home owner here. My tax bill went up but honestly, my assessed value is still way below market value so should I complain? It seems very arbitrary how the assessed value is determined. On the plus side, if we let pricing yoyo around with the housing market, that would be hard to plan vs. a slow steady rise but I do think it leaves a lot of money on the table.
What should the policy of the city be - raise a target amount of funds or capture a specific percentage of home value? It seems the policy is the former and yet people are relatively paying less than they could be taxed in a more accurately managed system.
My concern is that all of our taxes are going up by a bit but I have zero confidence any midterm planning is being done to offset unfunded pension/health care liabilities as the grifter generation nears retirement - you know, the guys who magically never took a sick day and retire on temporary promotions, etc... We'll be paying for people who gamed the system full salaries and beyond for decades after they retire.
this report claims it is on track to be funded by 2025
https://bmrb.org/wp-content/uploads/2018/11/RUpension1118.pdf
The only people that magically never take a sick day are bosses. Because they approve there own time. Personally, My earned time is capped I can't earn more than a certain amount it just stops accruing if it runs over. I realize that this stuff does happen but most of those pensions are hard earned. The private sector tricked the taxpayers into being a safety net for their employees. Because if you don't have a pension or a retirement account, its the taxpayers that feed, house and care for you. Politicians may be grifters but pensioners are not.
Complaints
A lot of complaints here about small increases. You want a big increase? How about the city deciding last year that the small unbuildable lot in the rear of my property needed to be reclassified from Land - Unusable (as it has been assessed for decades) to Land - Usable.
Result: 400% increase in taxes! That's four hundred percent, not a typo. Thanks Boston!