Arlington Tax Bill Changes Explained

ARLINGTON, MA – Town officials this week responded to questions raised following the release of the Fiscal Year 2019 third quarter real estate tax bills last month. In a joint statement, the select board, town manager and board of assessors explained the assessment process as it pertained to the town's overall tax rate.

From FY2018 to FY2019, taxes went up 5.76 percent, or $6.8 million. Just under $1 million of that is due to taxation on new buildings or additions. For most taxpayers who own homes that have not been expanded or renovated, the average tax increase is 4.9 percent.

About $2.7 million is due the annual increase of 2.5 percent allowed under Proposition 2 1/2 and approximately $3 million is due to debt exclusion overrides, namely for the Gibbs School and Minuteman High School building projects, officials said.

Another factor in calculating each tax bill is the valuation of each property. This tax bill includes the housing sales information from the 2017 calendar year, which saw significant variation in price changes by neighborhood, officials said.

While the overall town tax increase was set at 4.9 percent, a property's jump in value could cause it to see an increase higher than 4.9 percent, while other properties could fall below 4.9 percent. If a home's value went up by 20 percent, and another home's value increased by 10 percent, the first home is going to have a larger increase, according to the town.

See the chart below for the change in taxes from FY18 to FY19

Tax bills are determined by multiplying a property's assessment by the town's tax rate. In 2019, Arlington's tax rate decreased from $12.13 to $11.26, a 7.2 percent decrease.

Assessments can go up or down based on market conditions. By law, assessors are required to assess property at its fair cash value, which is the price a willing buyer and willing seller would settle upon in an open market transaction with no special circumstances attached.

For residential property, fair market value is determined by looking at recent sales of similar properties. Sale information can be found here.

See below for a breakdown of assessments and increases/decreases by tax neighborhood:

In neighborhood 2, Kelwyn Manor, there were five home sales in 2017. The neighborhood also saw some of the largest assessment changes last year. Sales of the five homes sold were between 16 percent and 54 percent higher than their previous assessments. The new assessments are between 13 percent and 42 percent higher than the previous assessments.

The median ratio of assessments to fair market value, based on recent sales prices, is between 90 percent and 110 percent, officials said. In the table below, the median ratio is 94 percent:

The 2018 and 2019 assessments are available on the Assessing Department page:

If residents believe they have evidence that their homes were assessed too highly, they can file
an abatement application with the Assessing Department.

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