The shortfall in tax payments will be borne by other property owners
West Springfield became the latest Western Massachusetts community this week to adopt a section of state law to allow property owners affected by the June 1 tornadoes to get some tax relief.
The West Side Town Council voted unanimously Monday to adopt the state law that allows municipalities to base fiscal 2012 property tax bills on values as of June 30, rather than Jan. 1. Fiscal 2012 started July 1.
Several other communities affected by the tornadoes, including Springfield, Monson, Wilbraham and Brimfield are also taking the same tack. No public discussions have taken place in Westfield about such abatements, as most damage in that community was related to trees, not buildings.
The values of some properties declined precipitously as a result of the tornadoes which hit the region, and officials say basing property tax bills on values as of June 30 will mean tax relief for some of the affected property owners.
West Springfield has put the tornado’s damage to private property in the community at approximately $9.5 million. Of the 181 properties damaged in the tornado ,33 meet the criterion of having lost more than 50 percent of their values needed to qualify for the relief, according to principal assessor Christopher Keefe.
That comes to about $6.7 million in lost value, leaving those properties with a total value of about $8.7 million. Their reduction in taxes will be borne by the rest of the city’s approximately 10,000 property taxpayers, who raise a total of about $56 million each year.
By the time Mayor Edward J. Gibson asked council president Kathleen A. Bourque to put the issue on the council’s agenda she told him she already had.
“It obviously saves the individual or business some money when they are trying to invest in their property and rebuild,” Gibson said. “In my opinion, it is going to be a big help to a lot of property owners.”
Some property owners affected by the tornado did not have insurance and the tax break will help with their cash flow, Gibson said.
“This is an additional something to alleviate the stress on some of the tornado victims,” added Bourque.
Across the Connecticut River, meanwhile, where the tornado continued its path of destruction, the city of Springfield has already provided tax relief on approximately 2,050 tax bills for property owners who sustained significant damage and lost value.
First-quarter estimated tax bills were mailed earlier this month, reflecting the relief, and were based on the physical condition of the properties as of June 30, one month after the tornado.
Some 1,812 parcels in Springfield received a 25-percent reduction on the building value while condemned properties, numbering 241, received larger decreases, according to city officials.
Mayor Domenic J. Sarno directed his city’s assessors to work with the affected homeowners on a case-by-case basis, saying it is the “fair and equitable thing to do.”
Each site was slated for a visit by assessors’ personnel, with the information gathered made part of the new valuation upon which the tax bills will be based.
In Brimfield, the town Building Department reported there were about 140 homes with serious damage, 40 of which were condemned and must be rebuilt. Assessors has already conducted inspections to place new values on the properties for tax purposes, according to Carolyn M. Haley, chair of the Board of Assessors.
The property value losses from the storm add up to about $7 million in Brimfield, and Haley said the new, diminished values, are being calculated for the current property tax bills.
Monson adopted Chapter 653 at the annual Town Meeting in 1990; it came in handy this year after the tornado damage, as assessors were able to assess damaged properties based on their appearance as of June 30, and make adjustments to property taxes.
“We went out and did the best to our ability,” said Monson principal assessor Ann P. Murphy. “We went through all the neighborhoods and documented what damage we could see.”
Murphy said they also notified the property owners what they were doing, so that they could provide additional documentation if necessary. “This will be a help for (property owners) for the coming year,” she said.
Monson has an estimated 300 properties with tornado damage, which translates into $12 million in lost value, or $173,160 in tax payments that will have to be absorbed by the budget in other areas, according to Murphy.
For example, a property valued at $150,000 ($100,000 for the house, $50,000 for land) which no longer has a house because the tornado demolished it would be taxed only on the land.
The tornado pushed back the mailing and due date for the first-quarter tax bills, which are now due Sept. 1 instead of Aug. 1. The assessors needed time to adjust the impact on properties, Murphy said. The second-quarter tax bill will still be due on Nov. 1.
The Wilbraham Board of Assessors announced plans to assess fiscal 2012 real estate taxes on the physical condition of properties as of the end of June also.
Taxpayers with tornado-damaged properties in Wilbraham will have their property records updated by the office staff and their fiscal 2012 valuations based on the damaged condition.
The property losses in Wilbraham ranged from minor damage to total loss, according to building inspector Lance Trevallion. He said 234 homes with damage were inspected, and, of those, 13 were classified as unsafe for occupancy.
Staff writers Peter Goonan, Suzanne McLaughlin, Laurie Stabile, John Appleton and Ted LaBorde contributed to this report.