Complaints rampant at Pawtucket tax office
01:00 AM EDT on Monday, July 13, 2009
By Michael P. McKinney PAWTUCKET –– The phones in the tax assessor’s office ring often these days, bringing a torrent of taxpayer angst, confusion and questions. “Between phone calls and people in this office, it’s certainly well over a thousand,” said Tax Assessor David L. Quinn. The issue: Property tax bills, which went out the third week in June, have soared. Some property owners are facing increases of $700 or more. Officials say Pawtucket exemplifies what happens when a rough economy hits home. But the city has a double whammy: It underwent a property revaluation in which houses, on average, lost 23 percent of their appraised value. Assessments dropped more on single-family houses than on multifamily buildings. Assessments on commercial property generally increased as a result of the revaluation. And the city needs $3 million more in tax revenue this year to deal with a municipal budget deficit from the last fiscal year. All told, the city lost some $900 million of residential property value, according to Peder Schaefer, director of the state Division of Municipal Finance. Ever since city officials said this year’s budget carries an 8.2 percent increase in the tax levy — the amount of money raised through property taxes — some taxpayers have cried foul, questioning whether the increase is higher. Some tax bills arrived with increases of 20 percent or more. The focus of angry property owners is the residential property tax rate. Prior to the reassessment and drop in the residential property tax base, the rate was $12.39 per $1,000 of assessed value. To collect the same amount of tax revenue after revaluation, the rate went to $16.13 per $1,000. The new budget requires an increase in the rate to $17.78. Finance Director Ronald Wunschel said, think of it this way: The average residential property value in Pawtucket decreased about 23 percent. So if the $12.39 per $1,000 tax rate on a house assessed at $100,000 resulted in a $1,239 tax bill, the average property value decrease means a $16.13 tax rate was required on what is now a $77,000 assessment to collect about the same amount in tax revenue from the property. Quinn said that owners of houses that did not decrease in value are seeing larger tax bill increases than those who experienced greater depreciation in value. Some residents are concerned that the city’s tax exemptions for the elderly, veterans and others have been cut. Wunschel said there is misunderstanding there as well. There has been a change in the exemptions to account for the drop in property values, but once calculated, the tax bill discount is generally higher this fiscal year. Schaefer, the state municipal finance official, noted that, in addition to the decrease in residential property values, Pawtucket’s motor vehicle tax revenue has plummeted by $1.6 million because people are not buying new cars. That and the cut in state aid to municipalities in this fiscal year put more pressure on real estate property taxes for the revenue to run the city. Quinn said about 500 people have taken out tax assessment appeal forms and about 150 of them have been returned.
Journal Staff Writer