FARM TAXES IN MASSACHUSETTS 109 



basis have been made, but no such attempts have been made to systematize 

 farm assessments. 



Infrequent valuation is another cause of undervaluation of farm and city 

 property. New property can not be listed and inequalities in assessment be- 

 tween neighbors can not be corrected by copying the valuations of the pre- 

 vious year. Attempts are often made to remedy undervaluation by increasing 

 all assessed values by a uniform percentage. Obviously this method is faulty, 

 since it does not attempt to correct existing inequalities between properties 

 within the town. 



Undervaluation of farm real estate often results from an attempt to rec- 

 oncile the value for farming purposes with the value for purposes other than 

 farming. Under normal conditions, the value of farm land bears a direct 

 relationship to the average income derived from it. In Massachusetts the 

 large and growing urban population makes continuous demands for more 

 room. This means that farm land adjoining our larger cities and towns has 

 a site value for building lots entirely out of proportion to its value as farm 

 land. Farm land for subdivision purposes is worth from $500 to $1000 per 

 acre. Only the best grades of market garden land will return a profit on 

 such high valuations. To assess farmers on the value of their land for build- 

 ing lots may be unfair, since taxes may force such land on the market before 

 it is really needed. Assessors attempt to get aroimd the situation by a valu- 

 ation somewhere between the farm value and the value for subdivision 

 purposes. 



The importance of this type of land will be realized when it is considered 

 that our 39 cities occupy one-tenth of the land area of the state. In addition 

 to the cities there are 79 towns of more than 5000 population, 31 of which are 

 semi-urban with a population of 10,000 or more. It is estimated that 15 per 

 cent of the land area of the state is used for city residence, business and 

 factory purposes. As the population is increasing at the rate of about 2 per 

 cent each year, it is apparent that the amount of farm land going into urban 

 uses each year is comparatively large. 



A further reason for the low assessment of farm land compared with sale 

 value lies in the increasing use of farms for residences by city workers. Such 

 farms usually sell for much more than the farm is worth for farming pur- 

 poses. If the assessed value of such property is raised to approximate its 

 sale value, adjoining property occupied by actual farmers must be raised 

 proportionally thereby working a hardship on the farmers. 



A third factor affecting land values is the increasing amount of farm land 

 going into large residential estates. Numbers of farms have been purchased 

 in all parts of the state and have been turned into estates. Where such an 

 estate is being formed, prices of farm land are always higher than the sale 

 value for farming purposes. In certain towns in the eastern part of the state, 

 estates or summer homes make up practically the entire town although the 

 land is assessed at approximately its value for farm purposes. In other cases, 

 assessors have attempted to assess such property between the farm value and 

 the sale price. 



In most cases the assessors have made some effort to adjust assessments 

 upward without burdening the farmer too heavily, where the above-mentioned 

 conditions exist. Naturally ideas on how much of the extra-farm value should 

 be included in the assessment vary. Accordingly, one town assesses at 80 per 

 cent, another at 60 per cent, and another at 50 per cent of sale value. Assum- 

 ing sale value at $500 per acre for subdivision purposes, and a tax rate of 

 $30 in each town, taxes vary as follows: 



