|
Home > Departments > Assessors > Supplemental Tax Bills
|
|
| What is a Supplemental Tax Assessment? | A supplemental tax assessment is made on a real estate parcel for the fiscal year whenever 1) a temporary or permanent certificate of occupancy is issued for that parcel during that fiscal year and 2) the new construction or improvement made after the annual assessment for the fiscal year has increased the assessed value of the parcel by over 50 percent. In some cases, a supplement tax assessment may be made for the following fiscal year as well.
Example
July 1, 2005 a new house is 30% complete and the fiscal year 2006 tax bill is issued for land:$90,000 & Building: $109,000 (@30% complete)
Total value: $199,000 x 15.66/thousand)=$3,116.34 total tax
A CO is issued for this property February 3, 2006. With the house 100% complete its new total value is $605,900, of which $406,000 in new construction is subject to the Supplemental Tax Assessment. The formula for the new supplemental tax assessment is: $406,900 x 15.66/thousand=$6,372.05/365 (days)=$17.46/day x 147 days (2/3/2006-6/30/2006)=$2,566.62
The supplemental tax assessment for 2006, in this example, is $2,566.62.
|
| A Brief History | Originally, all property was taxed as of January 1st of each year. Any new construction completed after that date was not taxed until January 1st of the following year. In January of 1990 the City Council adopted Chapter 653 of the Acts of 1989 which allowed the city to tax all new construction up until July 1st to account for a more realistic construction cycle in the northeast.
More recently, a bill was approved by our state legislature, coined the 'Hopkinton Bill' (named after the town that initiated it), that allows each city and town to VOLUNTARILY tax new construction from the date that a Certificate of Occupancy (CO) was issued through the end of the fiscal year. Under a recent amendment, the statute now applies automatically unless the Department of Revenue is notified in writing by the selectmen or town or city council,with the mayor's approval if required by law, of its rejection. |
| Abatement of Supplemental Assessments | | The taxpayer may contest a supplemental tax assessment by filing an application for an abatement with the assessors. The deadline for filing an abatement application for a supplemental tax bill is the same day that the bill is due. The assessors' decision on the application may be appealed to the Appellate Tax Board in the same manner and by the same deadline as a decision on an application for abatement of a regular tax assessment. |
|
|
|
|
