Taxation – Real estate assessment

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Where the Montague assessors valued a building at $2,264,600 for fiscal year 2022, the subject property was overvalued for the fiscal year at issue, so an abatement in the amount of $6,181.75 should be granted.

“This is an appeal filed under the formal procedure pursuant to G.L.c. 58A, §7 and G.L.c. 59, §§64 and 65 from the refusal of the Board of Assessors of the Town of Montague (‘assessors’ or ‘appellee’) to abate a tax on real estate located in Montague owned by and assessed to JaDuke, Inc. (‘JaDuke’) for fiscal year 2022 (‘fiscal year at issue’). This appeal was filed on behalf of JaDuke by Kimberly Williams, President and Treasurer, and Nick Waynelovich, Vice-President and Secretary (‘appellants’). …

“On January 1, 2021, the relevant date of valuation and assessment for the fiscal year at issue, JaDuke was the assessed owner of a 2.098-acre parcel of real estate improved with a building located at 110 Industrial Boulevard in Montague (‘subject property’). The subject property is located in an industrial park and contains a total of 23,827 square feet divided into various educational uses, including: day care; after-school programs for singing, dancing, and acting; a driving school; and music lessons. A unique aspect of the subject property is its theater space, with high ceilings and stadium seating. The theater space seats 540 people and is used for dance recitals, as well as children’s concerts and plays. The appellants and their family operate all the activities at the subject property and there were no leases or rental agreements for use of the space on the relevant date of valuation. The appellants had the subject property constructed in 2019 for use in conjunction with an adjoining property that was being used for essentially the same educational purposes.

“For the fiscal year at issue, the assessors valued the subject property at $2,264,600. In accordance with a Tax Increment Financing Agreement (‘TIF agreement’) between JaDuke and the Town of Montague — the specific details of which were not entered into evidence — the taxable value of the subject property was $1,605,170 (‘TIF value’) for the fiscal year at issue. Application of the tax rate of $25.83 per $1,000 to the TIF value resulted in a tax amount of $41,461.54, plus a Turner Falls Fire District tax of $6,308.32, for a total tax amount of $47,769.86 for the fiscal year at issue. …

“The appellants’ main contention was that the classroom space in the subject property was assessed far in excess of its value, particularly compared to the assessed value of similar, albeit older, space in the adjoining building. …

“For their case, the assessors submitted the jurisdictional documents into evidence and primarily relied upon the appraisal report and testimony of George E. Sansoucy, a certified general appraiser whom the Board qualified as an expert witness. …

“On the basis of all the evidence, the Board found and ruled that the appellants met their burden of proving that the subject property was overvalued for the fiscal year at issue. The Board found inherent limitations with both parties’ valuation analyses, from the lack of adequate adjustments by the appellants to Mr. Sansoucy’s reliance on a cost approach and income-capitalization approach. …

“… The Board agreed with the appellants’ contention that the classroom space was significantly overvalued and that the subject property itself was overvalued. …

“In the present appeal, the Board declined to adopt entirely either party’s opinion of value. Instead, the Board considered the appellants’ showing of overvaluation of the classroom space and then viewed the record in the aggregate, which afforded the Board sufficient and probative evidence to derive the fair cash value of the subject property for the fiscal year at issue. In sum, based on all the evidence presented in this appeal, and reasonable inferences drawn therefrom, the Board found and ruled that the appellants met their burden of proving that the subject property was overvalued and determined a fair cash value of $1,825,000 for the fiscal year at issue. Accordingly, the Board found and ruled for the appellants and granted an abatement in the amount of $6,181.75, plus statutory interest under G.L.c. 59, §69, pursuant to the parties’ agreed-upon calculations provided under Rule 33 of the Board’s Rules of Practice and Procedure.”

Williams, et al. v. Board of Assessors of the Town of Montague (Lawyers Weekly No. 20-026-25) (10 pages) (Chairman DeFrancisco heard the appeal and was joined in the decision by Commissioners Good, Elliott, Metzer and Bernier) (Docket No. F345661) (Aug. 19, 2025).

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