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06/04/2019 02:36 PMChanges in policy at the Assessor’s Office have created two main points of concern for horse owners and businesses in town. The first is a personal property tax imposed on horses, and the second is the Income and Expense Survey that was sent out, for the first time this year, to four horse businesses in town. Approximately 20 residents attended the May 28 Board of Selectman meeting to discuss these points further with the selectman and Town Assessor Robin O’Loughlin.
While the selectmen had heard residents’ concerns about the matter at an earlier meeting, the May 28 meeting was the first time in a public forum that O’Loughlin had a chance to explain her reasoning for sending out the Income and Expense Survey to the horse business owners. She explained that it was a way to arrive at an assessed value on each property using both an income and a cost approach.
O’Loughlin said that her charge as town assessor is to, every five years, prior to the reevaluation in town, look at everything in town that is taxed and take note of anything that has changed so she can come up with a fair and equitable value for taxes.
O’Loughlin said that the although the land for horse businesses is taxed under Public Act 490, which allows farm, forest, or open space land to be assessed at its use value rather than its fair market or highest and best use value, she still needs to provide a fair market value of the land based on what it would sell for on the open market.
Foggy Meadow Farm owner Hillary Schreiber Rheinheimer said that putting a value on horse property based on what is currently being charged for board and lessons does not necessarily represent the value of the property being taxed, because the value is in the trainer of the facility and that value cannot be assessed.
“I am the value [of the property]. It’s a very gray area,” said Rheinheimer. “Someone else can not come in and bring the same value to the property that I as the trainer bring.”
O’Loughlin said she understood and answered, “You need to pull out for fees, what you bring to the table as the trainer.”
First Selectman Angus McDonald said that the new survey is a different way to ask the same questions to ensure that all the necessary information is provided to the town by all the horse businesses in town. He said the change in paperwork was in direct response to some of the farms not getting all the information to the town.
As promised at the May 14 Board of Selectmen meeting, McDonald did get back to the horse business owners prior to the meeting about the due date of the Income and Expense Survey; no extension would be given to the form’s June 1 due date.
“This is the main form that is sent out to the majority of businesses in town including marinas, cell towers, bed and breakfasts, etc. We did have an attorney, that represents us, review it before it was sent out,” said O’Loughlin who acknowledged that there is room for improvement of the document moving forward.
“After explaining [your reasoning] your decision [to send the survey out] makes sense, but maybe next time you could involve the horse community when you make these decisions,” said Jack Baldwin of Baldwin Stables, which has been in operation in Deep River for more than 15 years.
Personal property tax on horses was also discussed. The idea of placing a monetary value on a horse was the reason why horse owners wanted the tax to be removed, because they stated that the value of a horse is extremely subjective.
In 2014, Essex adopted a resolution similar to one adopted in Killingworth, Colchester, Durham, and other towns to exempt horses and ponies of any value from personal property tax. The Essex resolution was authorized and voted on by the Board of Selectman “to promote the agricultural use of land and other resources and in particular the stabling, training, instructing, and riding of horses and ponies.”
Kevin Wakelee of Larimar Show Stables provided McDonald with the Essex resolution at the May 14 meeting, at which time McDonald said the Board of Selectmen would investigate the language for a resolution to be voted on in Deep River.
Karen Baldwin, owner of Baldwin Stables, went to the May 28 BOS meeting expecting that the town would have used the same language as Essex for the resolution and that the matter would have been voted on that evening. When that did not take place, she expressed her concern. McDonald explained that he was confident that within the next four weeks, or sooner, that the language for such a resolution would be solidified and brought to the town for a vote.