This hearing, chaired by Councilor Ben Weber, was convened to review discrepancies between market value and tax assessed value for residential properties in Boston, and to evaluate the city's tax assessment practices. The committee heard from Interim Commissioner of Assessing Henlin Wong, followed by a second panel including Chris Lehman (Small Property Owners Association) and Professor Ruchi Singh (University of Georgia). Public testimony was also taken. The hearing highlighted significant differences in assessment accuracy between high-value and low-value properties, with councilors expressing concerns about vertical equity and the burden on middle-class and low-income homeowners. Public Comments & Testimony - Marta Carney (Savon Hill resident) proposed a third tax category for triple-deckers and four-to-six-unit buildings, noting that larger apartment buildings are often undervalued. She also suggested a tax deferral until sale, and urged the assessing department to rely more on subjective judgment and less on data alone. - Frank Baker (former District City Councilor, Dorchester resident) argued that rising assessments are pushing up insurance costs and making the city unaffordable. He stated that the city council does not set the tax rate—it is set across the hall—and that the council only votes up or down on it. - Melissa Guzman (lifelong Boston resident, former assessing department employee) testified that during her employment (October 2018–February 2019), she observed situations where employees were discouraged from approving abatements, and that some assessments appeared to rely on broad neighborhood treatment rather than individualized review. She called for independent review of departmental practices. Discussion Items - Opening Statements: Councilor Culpeper (lead sponsor) presented data showing that the 20 lowest-priced single-family homes sold in 2022 were assessed at about 105% of sale price, while the 20 highest-priced were assessed at about 80% in 2023/24 and 68% in 2025. He cited a $21 million sale at 59 Commonwealth Ave assessed at $12.5 million. Councilors Flynn and Fitzgerald echoed concerns about the impact of double-digit tax increases on working families and seniors. - Commissioner Wong's Presentation: Wong described the city's computer-assisted mass appraisal (CAMA) system, using multiple linear regression on arms-length sales from the calendar year prior to the lien date. She reported that the city's assessments consistently pass state Bureau of Local Assessment reviews and Lincoln Institute vertical equity tests. She highlighted the residential exemption ($4,353.74 for FY26) as a progressive tool that reduces tax bills for lower-value homes. - Councilor Culpeper's Q&A: He pressed Wong on specific high-end properties (e.g., 776 Borislow St sold for $17M assessed at $15M; 44 Beacon St sold for $10M assessed at $3M) versus low-end properties assessed nearly at sale price. Wong attributed differences to regression model outliers and the use of calendar 24 sales for FY26 assessments, noting that many high-end sales occurred in calendar 25 and thus were not yet incorporated. - Councilor Flynn's Q&A: He questioned the fairness of taxing long-term homeowners based on recent high sales in their neighborhoods. Wong explained that state law requires fair cash value assessments, but relief programs like the residential exemption and senior exemptions are available. Flynn also asked about penalties for challenging assessments; Wong confirmed no penalty exists. - Councilor Fitzgerald's Q&A: He inquired about the CAMA model's limitations and weighting of components. Wong stated the model is calibrated to market trends and that staff review outliers. Fitzgerald raised concerns about speculative development inflating market values and the risk of shifting tax burden to commercial properties leading to disinvestment. - Councilor Warrell's Q&A: He requested data on assessment-to-sale ratios for properties above $2M, $5M, and $10M, and per-unit assessments for large apartment buildings. Wong agreed to provide the data by assessment district. Warrell also asked about the income approach for larger buildings; Wong noted it relies on confidential rent and expense data from owners. - Second Panel – Chris Lehman (SPOA): Lehman argued that Boston's assessment system is biased: low-end single-family homes are assessed at 99-105% of sale price, while high-end homes average 68-80%—some under 30%. He claimed the underassessment of the top 20 properties alone amounts to $83 million in lost tax base. He also criticized the homestead exemption for shifting tax burden onto renters, who he said bear 50-89% of property tax increases via rent. - Second Panel – Professor Ruchi Singh: Singh presented research (by Ron Rakow) showing that when all valid sales are considered, Boston’s assessments meet professional standards for vertical equity. She explained that the residential exemption makes the overall tax system progressive: a $500,000 owner-occupied home pays about 0.4% of value in tax, while a $5M home pays about 1.2%. She recommended improvements: finer location controls, spatial quantile regression, better interior condition data, and individualized appraisals for the very highest-end homes. Key Outcomes - The hearing was informational; no votes were taken. - Councilors committed to following up on data requests from Commissioner Wong, including assessment-to-sale ratios by price tier and district, and per-unit assessments for apartment buildings. - The committee heard calls for legislative changes to create a third property tax category for smaller multi-unit buildings and for expanding awareness of the residential exemption. - The hearing highlighted a need for further study of outlier properties and potential reforms to assessment models for the top end of the market.
