FY 2026 Revaluation Information

What is a revaluation?

A revaluation is an update of all assessments within the community conducted by the Assessor’s office and their consultant under the direction of the Department of Revenue. The assessors of each community are responsible for developing a reasonable and realistic program to achieve the fair cash valuation of property in accordance with statutory requirements. The nature and extent of that program will depend on the assessor's analysis and consideration of many factors including but not limited to, the results of an in-depth sales ratio study and the accuracy of existing property record information. Every five (5) years the assessors must submit property values to the Department of Revenue for review and certification. Fiscal Year 2026 (July 1, 2025-June 30, 2026) is a revaluation (certification) year for the Town of Peru.

Why is a revaluation necessary?

State law requires that all property in the town be assessed within ten percent of market value every five years. This analysis is based on all qualified/arms-length sales that occurred in town and not just individual sales - (mass appraisal).

How are assessments determined?

To arrive at "full and fair cash value" for your property, the Assessors must analyze what "willing sellers" and "willing buyers" are doing in the marketplace. The assessment date is January 1st and therefore the Assessors will analyze sales from the prior calendar year to determine the level of assessment in comparison with the market. (Example: January 1, 2025 is the assessment date for Fiscal 2026 therefore the Assessors will analyze calendar year 2024 qualified market sales. These sales are arms-length sales and do not include family sales, sales to abutters, estate sales, foreclosure sales etc.) The Assessors will use three appraisal approaches to value: sales, cost, and income. The data, once analyzed, is then correlated to final values for all properties. This analysis must also meet all standards set forth by the Department of Revenue for certification.

What is market value (a.k.a. full and fair cash value)?

State law requires that your property be assessed at market value. Market value is the amount a typical, well-informed purchaser would be willing to pay for a property. For a sale to be a market value (arms-length or qualified) sale, the seller and buyer must be unrelated, the seller must be willing (but not under pressure) to buy, the property must be on the market for a reasonable length of time, the payment must be in cash or its equivalent, and the financing must be typical for that type of property. Fair cash value has been determined by the Massachusetts Supreme Judicial Court as "fair market value", which is the price an owner willing but not under compulsion to sell ought to receive from one willing but not under compulsion to buy.

Will all property values change?

Most likely, yes. However, not all assessments will change at the same rate. Market values may have increased more for some neighborhoods and/or different property types. Some neighborhoods and/or property types may have decreased more than others as well. Some neighborhoods and/or property types can even remain the same. One purpose of a revaluation is to make sure that the assessed valuations reflect the changes that have occurred within the marketplace.

How will my taxes change as a result of my new assessment?

Although the valuation of your property affects your share of taxes, the actual amount you pay is determined by the budgetary needs of the town. This is decided by what services will be provided in the coming year and the cost to provide these services. The budgets are approved at Town Meeting. Once this decision is made and valuations are certified by Department of Revenue, a tax rate that will generate the needed tax dollars is then adopted and approved by Department of Revenue. Your individual property taxes are then determined by multiplying your assessment by the tax rate. The tax rate is expressed as dollars per thousand dollars in value.