GREENFIELD — Understanding how a property tax bill is calculated can be difficult, which is why the Board of Assessors led a presentation Monday night explaining how property values and taxes are determined, and what residents can do to lower their tax bill.
“We wanted to put something together to help people understand your property assessments and taxes,” Chief Assessor Christina Summers said. “People think that what we do here is based on solid guesswork, and our whole professional office is based on getting down to the nitty-gritty. Guesswork is not what we do, not in Greenfield.”
Summers said the Assessor’s Office is regulated by the Massachusetts Department of Revenue, which sets guidelines on how property values should be calculated and certifies the numbers the city submits each year.
She explained the property tax bill that homeowners receive is calculated by multiplying the value of their home by the tax rate, which is set by City Council each year. The tax rate is determined by looking at the city budget and how much money needs to be raised via taxes after the city receives its state aid and local receipts, which include permit fees and excise taxes, among other sources.
The number that needs to be levied is then divided by the total value of all the properties in the city, which creates the tax rate.
“We get money from the state and other funds, but most of it is what we come up with through real estate, personal and property taxes,” Summers said.
Summers added that the city needs to raise whatever amount is required to fund the budget. In years where property values are higher, the tax rate can be lower to reach that amount, and in years where property values are lower, the tax rate is increased to reach that same amount. She said property taxes cover approximately 61% of the city’s budget.
While the tax rate is calculated based on the needs of the city budget, she said the other variable in how tax bills are calculated is property values. Property values are calculated by looking at the characteristics of the property and sales data.
Summers said the Assessor’s Office looks at the sales data for the calendar year prior to the assessment date. So, for this year, the data being used is from 2024 sales. She added that the department only looks at sales that occurred on an open market, and does not use sales where homes were moved in and out of trusts or between family members. In 2024, 85 single-family homes were sold in Greenfield.
In addition to sales data, Summers said property value is measured by the size of the house and lot, the style of the home and the condition it is in, all of which are recorded on the property card.
“This reflects all the data we have on the property, and it is the basis for the calculations that go into your valuation,” Board of Assessors Chair Jim Geisman said.
Geisman said having updated information is essential to ensuring property assessments are accurate. The Assessor’s Office reviews building permit data for any renovations or improvements. However, Geisman noted that maintenance, such as replacing an aging roof or a rotted deck, is not considered a renovation.
“We try to be consistent, uniform, and base our estimate of valuations on fair and full market values,” Geisman said. “These are based on citywide standards, site visits and comparables.”
“We try to keep out as much judgment as we can,” Summers said. “Part of our data collection manual breaks down what is an average house.”
Geisman said having up-to-date property cards ensures accurate tax assessments, and people can potentially lower their property tax bill by reviewing their property cards and comparing them to other similar homes. If the property card is inaccurate or valued higher than homes of similar styles and sizes, an abatement may be granted.
“It always helps if you can draw up comparables, because if you can make a case for your property being overvalued based on comparables, then you’re likely to get an abatement of some magnitude,” Geisman said.
“My only goal is to get things accurate,” Summers said. “I don’t get paid more if the property is valued higher, and I don’t get paid less if the property is valued lower. We really are only interested in accuracy and getting it correct.”
Tax abatement applications are due by Feb. 2. The city also offers exemptions for seniors, veterans, the blind, charitable properties, those experiencing financial hardship, and surviving spouses and minor children of deceased parents. Summers added that if the Board of Assessors does not approve an abatement, and the property owner disagrees with the board’s decision, they can file an appeal with the Appellate Tax Board, which will make an independent decision.
Geisman added that the city is working to establish an Elderly and Disabled Tax Relief program that would provide tax assistance based on need. Applications for the program would open in September and awards would be announced in March.
Summers noted that residential property values are calculated differently from commercial properties, and only owner-occupied properties with one to three units are considered residential. Commercial and rental properties are also calculated by looking at income and expenses associated with the property.
The Board of Assessors is planning a similar presentation on commercial properties, but has not yet set a date.
