NewburyportNews.com, Newburyport, MA

Local News

August 23, 2011

PI property owners get tax reprieve

Erosion 'stigma' helps make case

NEWBURY — They may not be able to turn back the tide of erosion, but some Plum Island beachfront owners did manage to persuade the tax man to take a smaller bite from their checkbooks.

Six Northern Boulevard homeowners who live in the vicinity of the island's most severe erosion have been awarded a 15 percent abatement on their property tax valuations as a result of an appellate tax board decision ruling.

The unusual case had property owners arguing that coastal erosion has decreased the square footage of land they are being taxed on. But ultimately, it was the "stigma" of negative publicity — in the form of widespread reports that sections of Plum Island are eroding — that made their case.

The owners of the properties at 16, 26, 46, 48, 58 and 76 Northern Blvd. — the families of Florio and Novack, DiNapoli, DeSalvo, Erickson, Accetta and Christ — filed an appeal in November 2010 questioning the town assessments of their properties, given the erosion situation on the beach.

Carrie Keville, the town's administrative assessor, said the appellate tax board found that 15 percent was a sufficient adjustment to compensate for the existence of a "stigma."

The ruling read, "the evidence reflects that conditions on or reported about severe erosion on Plum Island clear the hurdle for a finding that an environment stigma in the form of severe erosion and ocean surges coupled with property loss and damage and prominent and notorious media reports exist in the area where the subject properties are located and is likely adversely impacting the marketability and value of subject properties."

Keville said that the Northern Avenue homeowners have already received abatement checks for the 2010 fiscal year, amounts that range from $1,100 to $1,500 each. The abatement amounts are based on the value of the land only. In addition, some of those same homeowners who appealed the assigned assessments in 2010 have been offered the 15 percent abatement for the 2011 fiscal year. The assessor's office is currently processing these.

"We have yet to determine how we will implement this ruling into our ongoing valuations of property," said Keville, who noted the difficulty in measuring the erosion at the properties. "The assessors are working on what actions will be taken, and the results will be reflected in the fiscal year third quarter bills, which are sent out at the end of December."

When reached at home, one of the Plum Island homeowners said it was premature to comment because they were still working with the town on the valuations.

Homes in that section of the island are generally valued at $720,000 and up, and based on current valuations, will pay tax bills of $7,000 apiece or more.

For the past decade, evidence of severe erosion has been apparent in the area near the Beach Center, extending about a half mile north. A 2009 study by the Army Corps of Engineers determined that some 26 homes in the area — including the homes that won the property tax break — were threatened with damage or destruction within the next decade if nothing is done to mitigate the erosion.

Last year, tons of sand were dumped in the area, providing significant relief and rebuilding the damaged portions of the beach.

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