TaxAssessors

Landlord's Privacy and

Tax Assessor Request for

Rental Income and Expense Information

Peter Mark Heintzelman, Esq.

Visit My Webpage: Heintzelaw.com

In their periodic collection of data related to real property, local Massachusetts municipal tax assessors often seek detailed information from taxpayers relative to income property that is own, and specifically how much rental income is generated. Many landlords clearly do not like the request for such information, and feel they should not have to provide that information requested.

Tax Assessor's Statutory Authority:

Massachusetts General Laws, Chapter 59, Section 38 entitled: "Taxable Valuation According to Use Classification", provides in relevant part, that the assessors of each city and town shall at the time appointed therefore make a fair cash valuation of all the estate, real and personal, subject to taxation. Chapter 59, Section 38D entitled: "Information Returns; Penalty", provides that a board of assessors may request the owner or lessee of any real property to make a written return under oath within sixty days containing such information as may reasonably be required by it to determine the actual fair cash valuation of such property.

Case Law Interpretation and Support of Tax Assessor's Powers:

A taxpayer must furnish information relative to valuation of property on request of assessors. General Dynamics Corp. V. Board of Assessors, 388 Mass. 24, 444 NE 2d 1266 (1983).

"Fair cash value of land, for purposes of taxation, is ascertained by consideration of all those elements which make it attractive for valuable use to one under no compulsion to purchase yet willing to buyer for a fair price, attributing to each, attributing to each element of value amount which it adds to price likely to be offered by such buyer. MA General Hospital v Belmont, 233 Mass. 190, 124 N.E.2d 21 (1919). The fair value of land and structures thereon depends, in no small measure, upon the nature and extent of valuable use which can be made of them under existing conditions. Revere v. Revere Constr. Co., 285 Mass. 243, 189 N.E. 73 (1934).

A properties' rental value is recognized by the Supreme Judicial Court of Massachusetts, See Board of Assessors v. Shop-Lease Co., 364 Mass. 569, 307 N. E. 2d 310 (1974). In that case the Court notes that the Board of Assessors, "was entitled to receive evidence as to the relationship among rental values, store size, gross sales and other operating figures...."

"The use of actual rents is an acceptable method of valuation as long as they adequately reflect earning capacity. "Pepsi-Cola Bottling Co. V. Board of Assessors of Boston, 397 Mass. 447 491 N. E. 2d 1071 at 1074 (1986).

Penalties for Failure to Comply:

Failure of an owner or lessee of real property to comply with such request within sixty days after it has been made shall bar him from any statutory appeal under this chapter, unless such owner or lessee was unable to comply with such request for reasons beyond his control. If any owner or lessee of real property in a return made under this section makes any statement which he knows to be false in a material particular, such false statement shall bar him from any statutory appeal under this chapter.

If an owner or lessee of real property fails to submit such information within the time and in the form prescribed, in addition to any other penalties, there shall be added to the real property tax levied upon the property in question for the next ensuing tax year the amount of fifty dollars; provided, however, that the board of assessors informed said owner or lessee that failure to so submit such information would result in said penalty.

In summary, such information is statutorily authorized to be collected by tax assessors.





	Landlord's Privacy and Tax Assessor Request for Rental Income and Expense Information by Peter Mark Heintzelman, Esq. Copyright 2000, all rights reserved Visit My Webpage: Heintzelaw.com In their periodic collection of data related to real property, local Massachusetts municipal tax assessors often seek detailed information from taxpayers relative to income property that is own, and specifically how much rental income is generated. Many landlords clearly do not like the request for such information, and feel they should not have to provide that information requested. Tax Assessor's Statutory Authority: Massachusetts General Laws, Chapter 59, Section 38 entitled: "Taxable Valuation According to Use Classification", provides in relevant part, that the assessors of each city and town shall at the time appointed therefore make a fair cash valuation of all the estate, real and personal, subject to taxation. Chapter 59, Section 38D entitled: "Information Returns; Penalty", provides that a board of assessors may request the owner or lessee of any real property to make a written return under oath within sixty days containing such information as may reasonably be required by it to determine the actual fair cash valuation of such property. Case Law Interpretation and Support of Tax Assessor's Powers: A taxpayer must furnish information relative to valuation of property on request of assessors. General Dynamics Corp. V. Board of Assessors, 388 Mass. 24, 444 NE 2d 1266 (1983). "Fair cash value of land, for purposes of taxation, is ascertained by consideration of all those elements which make it attractive for valuable use to one under no compulsion to purchase yet willing to buyer for a fair price, attributing to each, attributing to each element of value amount which it adds to price likely to be offered by such buyer. MA General Hospital v Belmont, 233 Mass. 190, 124 N.E.2d 21 (1919). The fair value of land and structures thereon depends, in no small measure, upon the nature and extent of valuable use which can be made of them under existing conditions. Revere v. Revere Constr. Co., 285 Mass. 243, 189 N.E. 73 (1934). A properties' rental value is recognized by the Supreme Judicial Court of Massachusetts, See Board of Assessors v. Shop-Lease Co., 364 Mass. 569, 307 N. E. 2d 310 (1974). In that case the Court notes that the Board of Assessors, "was entitled to receive evidence as to the relationship among rental values, store size, gross sales and other operating figures...." "The use of actual rents is an acceptable method of valuation as long as they adequately reflect earning capacity. "Pepsi-Cola Bottling Co. V. Board of Assessors of Boston, 397 Mass. 447 491 N. E. 2d 1071 at 1074 (1986). Penalties for Failure to Comply: Failure of an owner or lessee of real property to comply with such request within sixty days after it has been made shall bar him from any statutory appeal under this chapter, unless such owner or lessee was unable to comply with such request for reasons beyond his control. If any owner or lessee of real property in a return made under this section makes any statement which he knows to be false in a material particular, such false statement shall bar him from any statutory appeal under this chapter. If an owner or lessee of real property fails to submit such information within the time and in the form prescribed, in addition to any other penalties, there shall be added to the real property tax levied upon the property in question for the next ensuing tax year the amount of fifty dollars; provided, however, that the board of assessors informed said owner or lessee that failure to so submit such information would result in said penalty. In summary, such information is statutorily authorized to be collected by tax assessors.