Taxes are for the little people

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Taxes are for the little people

Middleborough Taxpayers:

There are few things more glaringly unfair in this country than the fact that some people and some businesses get taxed at a rate less than most of the rest of us pay. Our government gives bailouts to big business. I've written recently about the tax assessments of a number of specific, high value commercial properties which have sold recently.

Apparently, some taxpayers don't need a TIF to insure a reduction in taxes. Let.s call it a TIP, To Insure Prosperity.

154 Campanelli Drive sold in 2006 for 19.1 million. It appears it was assessed for $19 million for FY 08 and 09. This year it was assessed for 14.9 million. Did they get an abatement in FY 09? Were we told a "public pension fund" bought it?

MIDDLEBORO, MA Net Lease Capital

Advisors, Inc. has completed another

property acquisition on behalf

of its joint venture program

with a major domestic public pension

fund advised by AEW Capital

Management, L.P. The joint venture,

which focuses on acquiring

net leased industrial, office, and

retail properties on an all-cash basis,

closed the $19.1 million purchase

of a 275,000 s/f warehouse

property located in a masterplanned

industrial park. Net Lease Capital and AEW view this property as a mid-to-long-term

investment.

This year they paid about $186,995 in taxes. If they were assessed closer to their fair market value, what they paid for it, they would have paid about $239,700. They get a tax "TIP" of about $52,700.00!

They asked for and got a tax abatement this year and likely last year. Their assessment was just lowered to $12.4 million. It was just a little TWEAK to the depreciation, from 25% to 40%, for a building built in 2000. That's an additional $31,000! A total of $83,000 tax "TIP".

OH! Just so happens this property WAS GETTING A TIF! They had their TIF revolked this year and so, applied for a tax abatement from the assessors. The assessors gave them an additional $31,000 abatement because they lost their TIF.

151 Campanelli Drive sold in November of 2007 for about 9 million. It's assessed for $6,063,500. This year they paid about $76,100 in taxes. If they were assessed closer to their fair market value, the price they paid for it, they would have paid about $112,950. They get a tax "TIP" of about $36,853.00.

Number 17 Cowan Drive (the FedEx property) sold in January, 2007 for about 7.9 million dollars. It's assessed for $4,113,600. This year they paid about $51,626 in taxes. If they were assessed closer to their fair market value, the price they paid for it, they would have paid about $99,145. They get a tax "TIP" of about $47,519.

A portfolio of seven Federal Express Ground distribution facilities -- including one in Massachusetts -- was sold for $52.3 million. The 546,120-square-foot portfolio includes buildings in Georgia, Idaho, Ohio, South Carolina, Pennsylvania, Massachusetts and Maine. One of the seven is a 73,137-square-foot facility in Middleborough, Mass. Most of the facilities were recently built.

Number 19 Cowan Drive , vacant commercial land, sold in September, 2008 for about 1.4 million dollars. It's assessed for $927,400. This year they paid about $11,640 in taxes. If they were assessed closer to their fair market value, the price they paid for it, they would have paid about $17,600. They get a tax "TIP" of about $5,931.00. Oh! Last year, Fiscal 2009, this property was assessed for 159,900. How can a 1.4 million property be assessed for 159,900 in the year it sold?

New England Tel. & Tel. simply asked the assessors for a tax abatement and it was granted. No questions asked. No documentation provided. No data verified. For some, it's "Ask and you shall receive." I advised another town to DENY this same taxpayer's appeal on a similar property. My value (per square foot) was double that of the Middleborough assessors.

These are just a few properties that I selected. Are we to believe everything else is correct? These "under-valuations", these TIPS, go on and on, from year to year. With only these few properties, the total TIP is about $175,000 per year. How much more is going on? Is this good decision making by the Board of Assessors?

I also question whether we have been calculating the real TIF exemptions properly or not. What do you think?

A "little guy" property, 123 East Grove Street , bought recently for $760,000. It's assessed at $741,400. No "TIP" for you. 84 South Main Street bought recently for $1,425,000 is assessed at $1,276,000. No "TIP" for you. 395 Plymouth Street recently sold for $975,000. It.s assessed at $930,700. No "TIP" for you. The "little guys" usually don't have lawyers. And,..hey're "little guys."

Regarding residential properties; I reviewed the data for properties of those taxpayers at the town's website. About thirty percent of the properties I looked at had what I suspect to be errors of data, errors of fact. Measurements were apparently wrong when comparing the sketch to the photo. Story heights (full story, three quarter story, half story) were inconsistent. Depreciation appears to be subtly random. The errors could be considered "minor", but if I can see them, why can't the assessors who work with this data daily? Why aren't they fixed? Errors in factual data result in errors in taxation! Some values were too high. Some values were too low. The result is: Some taxes were too high. Some taxes were too low. If you can't get the facts right, how can you assure the taxpayer your methodology is correct?

As your assessor I promise:

To expand awareness within the department of valuation issues and taxpayer expectations.
To initiate programs to more accurately describe and assess property.
To first correct, and then minimize, "mistakes" in the office, utilizing the existing staff.
To make the best decisions possible based upon the most accurate data available.
To assess fairly.

I have made no misrepresentations or falsehoods. I have questions. I stand behind my assertions that the assessment data is riddled with errors and fraught with poor judgment.

I can make it better. I'll look after all taxpayers. I ask for your vote for Assessor in this year's election. Let us strive for FULL and FAIR assessments for every taxpayer, big as well as small. Please tell your friends and relatives in Middleborough to vote for me. I need every vote possible.

Charles Shea, Candidate for Assessor.

e-mail: sheachuck@yahoo.com

Need to contact us? Email tony@aplawrence.com

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