Assessors Say Property Values Strong In Slumping Economy

by William F. Galvin

            HARWICH – Property values here are stable, deputy assessor David Scannell told selectmen Monday night during a tax classification hearing in which selectmen agreed to assess all properties at the same rate. Scannell said the anticipated tax rate is $6.25 per $1,000 valuation, a 3.3 percent increase.

            “There is some good news and surprising news,” Scannell said. “The value of the town of Harwich in 2007 is very stable. It’s very different from what you see in the newspapers and hear on the radio.”

            Chatham and Harwich real estate is performing quite well, he said, especially in the $400,000 to $4 million price range. Lower value properties are under stress with more foreclosures, Scannell told selectmen.

            A testament to the health of local real estate is a 6 percent increase in real estate sales in 2007, the deputy assessor said. The real estate market in Chatham is showing the same results, he added.

            Valuations have changed on some properties as much as 10 percent up and down, Scannell said. But the overall value of property in Harwich has dropped only one percent, but that has been offset by a 1.5 percent increase in value due to new construction.

            Speaking to the classification hearing, Scannell said shifting of the tax burden from one rate and placing additional burden on commercial properties does not give the residential taxpayer much relief, because 93 percent of the properties in town are residential. Such a shift would have a much larger impact on commercial properties, he said.

            The estimated tax rate is $6.25, Scannell said, up from $6.05 in FY 2008. He said the hike is attributed to the 2.5 percent increase allowed under Proposition 2 ½ and a debt exclusion vote to purchase a new ambulance. Tax bills can be expected in the next month.

            A large portion of residential properties are owned by non-resident taxpayers, Board of Assessors Chairman Richard Waystack said. He cited an economic study conducted for the East Harwich visioning efforts in which it was reported that 25 percent of properties are owned by non-residents. Waystack put non-resident taxpayers are closer to 45 percent. That is a large percentage compared with other Cape communities, the board chairman said.

            Citing economic conditions and the cost of fuel and electricity, Waystack said people need to know there are programs available to assist those in need.

“You’d be amazed how many people are getting by with so little in this community,” Waystack said. “We grant between 300 and 500 exemptions each year and with the price of fuel oil we have grave concerns for people in those homes this year.”

He said there are retired people living on $7,000 who are forced to decide whether to pay taxes, buy prescriptions or food. Last year there was a 20 percent increase in exemptions and assessing officials anticipate those requests will continue to increase.

Both Waystack and Scannell said there are several exemptions, allowed under the law and they can inquire at the assessing office about their availability. There are exemptions for veterans, sight impaired, seniors, surviving spouse of police officers and firefighters, hardship exemptions, deferrals and reverse mortgages for people meeting specified criteria.

Selectman Larry Cole suggested the board might want to look at a shift of the tax burden. He said high-earning people get a tax break from the government and that makes the argument for residential exemptions. Selectmen agreed any such decision would require a slow and methodical task force review.

Selectman Ed McManus put forth the recommendation to tax all property at the same rate. He said there are problems facing government and government services that will increasingly burden the property tax, and he cited the need for instituting more progressive taxes in the commonwealth.

“They should be supported and expanded to relieve the burden on the property tax,” McManus said.

In the end, selectmen voted to keep the status quo, taxing all properties at the same rate.  

9/11/08