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Assessors are elected or appointed locally in Massachusetts’s cities and towns. The Assessors are required by Massachusetts Law to list and value all real and personal property. The valuations are subject to ad valorem taxation on the assessment roll each year. The “ad valorem” basis for taxation means that all property should be taxed “according to value”, which is the definition of ad valorem. Assessed values in Massachusetts are based on “full and fair cash value”, or 100 percent of fair market value. Assessors are required to submit these values to the State Department of Revenue for certification every three years. In the years between certification, Assessors must also maintain the values. The Assessors review sales and the market every year and thereby reassess values each year. This is done so that the property taxpayer pays his or her fair share of the cost of local government, in proportion to the amount of money the property is worth, on a yearly basis rather than every three years. In addition, the Department administers the Motor Vehicle and Boat Excise taxes and betterments. The Assessors do not raise or lower taxes. The Assessors do not make the laws, which affect property owners. The Massachusetts Constitution requires that direct taxes on persons be proportionately and reasonably imposed. In addition, the Declaration or Rights, Part I, Article 10, requires each individual to bear his fair share of the public expenses. The Assessors are required to annually assess taxes in an amount sufficient to cover the State and Local appropriations chargeable to the City/Town. These taxes assessed will include State and County assessments which have been duly certified to the Board and local appropriations voted by the City Council or Town Meeting. The Assessors Office has nothing to do with the total amount of taxes collected. The Assessor’s primary responsibility is to find the “full and fair cash value” of your property, so that you may pay only your fair share of the taxes. The tax rate is determined by all the taxing agencies within the community, and is the basis for the budget needed to provide for services, such as schools, roads, fire, law enforcement, etc.. The tax rates are simply those rates, which will provide funds to pay for those services.
WHAT IF I DISAGREE WITH THE ASSESSED VALUE OF MY PROPERTY? If your opinion of the value of your property differs from the assessed value, by all means go to the Assessor’s office and collect pertinent data to support your opinion. The Board of Assessors will be glad to answer your questions about the reassessment procedures. When questioning the assessed value, ask yourself these questions:
Keep in mind what’s important: recent sale prices, condition, neighborhood, building area and lot area are the most critical factors in the valuation process. There is a variety of information available to help you determine whether your assessment is fair and equitable. The Assessors and their staff will be happy to assist you. If after discussing the matter with the Assessors or their staff, and researching the assessments of comparable properties within your area, a difference of opinion still exists, you may appeal your assessment to the Board of Assessors by filing an abatement application. If your community is on quarterly tax bills, the first two bills are preliminary tax payments based on your prior year’s taxes. The notice of third payment, referred to as the “actual tax bill” is when the filing period for abatement applications commences. The third tax bill (actual bill) is usually issued the end of December. The application must be filed with the Board of Assessors no later than February 1 or have a United States Post Office postmark of no later than February 1. If your community is on semi-annual tax billing the period for filing an abatement application commences when the notice of first payment or “actual tax bill” is issued, usually by October 1. The application must be filed with the Board of Assessors no later than November 1or have a United States Post Office postmark of no later than November 1. The information regarding filing an abatement or exemption application is also on your tax bill. The application must be on file in the Assessor’s office and not just postmarked on that date. You are appealing your assessment, not your taxes. You must pay your taxes pending your appeal. The Assessors have three months to take action on your abatement application. If it is approved, you will receive a certificate indicating the amount of the abatement. If your tax bill has a balance to be paid, the abatement will credited to your next payment. If your tax bill is paid in full, you will be sent a refund check. If your application is denied, you will receive a notice of denial. You may call and set up an appointment to meet with the Board of Assessors to discuss the reason for the denial. Or you may appeal to the State Appellate Tax Board (ATB) within three months of the date of the Assessors decision. They are located at 100 Cambridge Street, Boston, Ma. 02108 (617-727-3100) Keep in mind that the assessment date is January 1, as it affects your ownership status. The property is legally assessed to the owner as of January 1, but make sure you get a bill! You may be entitled to file an application for abatement if you dispute your value. Or, as the owner of property July 1, you may be entitled to file an application for one of the statutory exemptions that are available. WHAT
TYPES OF EXEMPTIONS (REDUCTION OF REAL ESTATE TAXES) A variety of exemptions is available to reduce the property tax obligations for certain qualifying taxpayers: Elderly Persons, Blind Persons, Disabled Veterans, Surviving Spouses, or Orphaned Minor Child, Surviving Spouse or Orphaned Minor of a Police Officer or Fire Fighter killed in the line of duty. Also available is a Tax Deferral for persons 65 years of age or over. Contact the Assessors Office if you have any questions on the requirements for these exemptions and to find out if you qualify. Or, you may call the Department of Revenue at 617-626-2300. The
qualifying date for these exemptions is July 1, the first
day of the fiscal year. You must own, occupy and otherwise qualify
for the exemption as of July 1. Applications must be
filed within three months from the mailing of the actual tax bill.
It is advised that the taxpayer file as early as possible. EXEMPTION ELIGIBILITY REQUIREMENTS CHAPTER 59, SECTION 5, CLAUSES 17, 17C, 17C ½ AND 17D Clause 17 exemptions are geared to older citizens, surviving spouses (widows and widowers) of any age and to qualified minors who have a deceased parent. Senior citizens who are 70 and over and who are not eligible for one of the Clause 41 exemptions may be able to qualify for one of the Clause 17 exemptions because under Clause 17 exemptions there are no income limitations. Massachusetts General Laws provides for the Clause 17 exemption in each community. It is up to the community to adopt the legislation, which provides for the exemption under Clauses 17C, 17C ½ or 17D as each of these exemptions has broader allowances for total assets, which are a consideration in qualifying for the exemption. If qualified, the applicant will receive a reduction of $175.00 on their tax bill. It is best to contact your Assessors office to find out which clause, 17, 17C, 17C ½ or 17D is being used in your community and to get the particulars of the qualifications for the exemption. If two or more people own the property, each of whom is entitled to a different exemption, each can apply and if the person is qualified, each will be entitled to his/her exemption. In addition, your local Council on Aging may be able to help you fill out the forms. Some councils employ tax specialists to provide such assistance. The application must be filed with three months of the mailing of the actual tax bill and must be filed annually. If your application is denied, you have the right to file an appeal with the State Appellate Tax Board, 100 Cambridge Street, Boston, Ma. 02108 (617-727-3100.)
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59, SECTION 5, Clauses 22,22A, 22B, 22C, 22D, and 22E provide for exemptions for certain disabled veterans (and their spouses or surviving spouses) who were honorably discharged and who meet certain residency requirements. The applicant must provide certification of their disability from the Veterans Administration. Clause 22 provides for an exemption in the amount of $250.00 for:
Clause 22A provides for an exemption in the amount of $425.00 for:
Clause 22B provides for an exemption in the amount of $775.00 for the veteran who has the loss or permanent loss of use of two limbs or eyes. Clause 22C provides for an exemption in the amount of $950.00 for the veteran who qualify for special adapted housing Clause 22D provides for an exemption in the amount of $250.00 for the surviving spouses (who do not remarry) of the veterans of Quemoy and Matsu Clause 22E provides for an exemption in the amount of $600.00 for the wartime 100% disabled veteran who because of his disability is incapable of working Clause 22F - Paraplegics - provides for a total exemption for the paraplegic veteran and his surviving spouse Legislation passed in October, 2000, provides for the surviving spouse of a veteran who was entitled to exemption under Clauses 22A, 22B, 22C, 22E and paraplegics to continue to receive the full exemption received by the veteran, even if they remarry. For those exemptions that are more than $250.00, if the subject property is greater than a single-family house, then only that fraction of the exemption, which corresponds to the segment occupied by the veteran, will be allowed. Wartime service is service performed by a “Spanish War Veteran”, a “World War I Veteran”, a “World War II Veteran”, a “Korean Veteran”, a “Vietnam Veteran”, a “Lebanese Peace Keeping Force Veteran”, a “Granada Rescue Mission Veteran”. A “Panamanian Intervention Force Veteran”, a “Persian Gulf Veteran”, or a member of the “WAAC”. Check with your Assessors Office for qualifying dates. The applicant must own and occupy and otherwise qualify as of July 1 of the year. An application must be filed annually within three months of the mailing of the actual tax bill. If the application is denied, you have the right to file an appeal with the State Appellate Tax Board, 100 Cambridge Street, Boston 02108 (617-727-3100)
CHAPTER 59, SECTION 5, CLAUSE 37, 37A The Clause 37 and 37A exemptions provide for an exemption for persons who have been declared legally blind and are registered with the Division of the Blind as of July 1 of the year. In the first year of filing, if the applicant is not registered with the Division of the Blind by July 1, a letter from the applicant’s doctor who made the determination of blindness can be used. Massachusetts General Laws provides for the Clause 37 exemption in each community. The amount of the exemption is $437.50 reduction in taxes. It is up to the community to adopt the legislation for Clause 37A, which will provide an exemption in the amount of $500.00. The only requirement in addition to owning and occupying the property, for which the exemption is requested, is being registered with the Division of the Blind as a legally blind person. There are no income or asset requirements. An application must be filed annually, together with a certificate from the Division of the Blind, within three months of the mailing of the actual tax bill. If the application is denied, you have the right to file an appeal with the State Appellate Tax Board, 100 Cambridge Street, Boston, Ma. 02108. (617-727-3100)
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59, SECTION 5, CLAUSE 41, 41B, AND 41C Clause 41 exemptions are geared to elderly persons age 70 and over. Massachusetts General Laws provides for the Clause 41 exemption in community. It is up to the community to adopt the legislation, which provides for the exemption under Clause 41B or 41C as each of these exemptions has broader allowances for total assets and income. The Clause 41 exemptions have residency and ownership requirements. In addition, each of the clauses has income and total asset limitations. It is best to contact your Assessors office to find out which clause, 41, 41B or 41C is being used in your community and to get the particulars of the qualifications for the exemption being used. For the person who qualifies, the exemption is $500.00 reduction in taxes. For the applicant who is married it is the combined income and assets that will be considered for qualification. If there is a co-owner other than a spouse, then the income and assets of the co-owner will also be considered and must come within the limitations required for the particular clause being used by the community. The income and assets of a co-owner other than a spouse will not be combined with that of the applicant, but will be considered individually. If, in the case of co-owners, other than husband and wife, the applicant and the co-owners all qualify with regard to income and asset limitations, then the exemption will be prorated in accordance with the proportion of the property owned by the applicant. Contact your Assessors office for the requirements necessary to qualify for he exemption in your community. Or call the Department of Revenue at 617-626-2300. The application must be filed annually within three months of the mailing of actual tax bill. If the application is denied, you have the right to file an appeal with the State Appellate Tax Board, 100 Cambridge Street, Boston 02108 (617-727-3100)
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59, SECTION 5, CLAUSE 41A Clause 41A provides for a deferral of the payment of taxes on property for persons age 65 or over. As opposed to an exemption, these unpaid (deferred) taxes must be paid at any time that the property is transferred by sale or inheritance. Under Clause 41A the applicant must enter into an agreement with the local Board of Assessors to defer all or a part of the taxes. If there is a co-owner, whether husband or wife or other, the co-owner must also sign the agreement for the deferral. If there is a mortgage on the property, the mortgagor must also sign the agreement for the tax deferral. In other words, all interested parties must sign in agreement to the deferral. The deferral and recovery agreement will be recorded at the county Registry of Deeds, which establishes a lien on the property. At the time of sale or transfer of the property, the monies deferred, plus 8 percent interest will have to be paid. Clause 41A has residency requirement and income limitations. Income of the prior year cannot exceed $20,000.00. It has no estate limitations. The community can adopt legislation, which will increase the income limit to as much as $40,000.00. If the applicant is receiving an exemption under the Clause 17’s or 41’s they may opt to defer the balance of their taxes rather than deferring the whole tax amount. Taxes deferred plus interest cannot exceed 50 percent of the value of the property. If the property is owned jointly with someone other than a spouse, then the total of the taxes deferred cannot exceed 50 percent of the value of the applicants interest in the property. Contact your Assessor’s Office for the particulars on the requirements of the tax deferral. An application must be filed with the Board of Assessors annually, within three months of the mailing of the actual tax bill. If your application is denied you have the right to file an appeal with the State Appellate Tax Board, 100 Cambridge Street, Boston 02108 (617-727-3100).
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59, SECTION 5, CLAUSES 42 AND 43 Clause 42 is a total exemption of property taxes for the surviving spouse (who does not remarry) of a police person or firefighter killed in the line of duty. There are no income or total asset limitations. Clause 43 is a total exemption of property taxes for the surviving minor child of a police person or firefighter killed in the line of duty. There are no income or total asset limitations. In the case of both clauses the applicant must own and occupy the property for which the exemption is being filed for as of July 1 of the year. The first time filing the application the applicant must provide documentation regarding the police person or firefighter’s death. This is usually a letter from the Police or Fire Chief explaining the circumstances. The application must be filed annually with the Board of Assessors within three months of the mailing of the actual tax bill. If the application is denied an appeal can be filed with the State Appellate Tax Board, 100 Cambridge Street, Boston 02108 (617-727-3100) Revised 2/27/0
TAX SAVING TIP #6DISABLED
VETERANS TAX EXEMPTIONS WHAT ARE TAX EXEMPTION CLAUSES 22, 22A, 22B, 22C, 22D AND 22E? Tax exemption Clauses 22, 22A, 22B, 22C, 22D and 22E release an individual from the requirement to pay all or a fraction of the taxes assessed on their real property. These clauses provide exemptions from $250.00 up to $950.00 for qualified veterans and their spouses (or surviving spouses). Surviving spouses of veterans entitled to exemption under Clauses 22A, 22B, 22C, 22E and paraplegics will continue to receive the full exemption, even if they remarry. WHO IS ELIGIBLE? Disabled veterans and their spouses (or surviving spouses) are eligible provided they meet predetermined qualifications. Also eligible are veterans who were awarded the Purple Heart, Gold Star Parents and veterans who have been awarded the Congressional Medal of Honor, Distinguished Service Cross, Navy Cross or Air Force Cross. Please contact your local Board of Assessors for eligibility prerequisites. WHAT ARE THE REQUIREMENTS? Applicant must have been residing in Massachusetts at least six months prior to entering the service or have lived in Massachusetts for at least five years prior to filing for the exemption. The veteran must own and occupy the property as his or her domicile on July 1 of the tax year. Please note: Individual communities may adopt a shorter qualifying residency requirement. Contact your local Assessors Office for more information. ARE PARAPLEGIC VETERANS ELIGIBLE FOR AN EXEMPTION? A total exemption is available for paraplegic veterans and their surviving spouses, even if they remarry. The veteran must be certified by the Veteran’s Administration as a paraplegic. HOW DOES ONE APPLY? An application must be filed annually with the local Assessor’s office in your city or town, on or before December 15 or within three months after the actual bill is mailed, whichever is later. If there are any questions, please contact the Board of Assessors. CAN A DECISION BE APPEALED? If the application for exemption is denied, the applicant may appeal in writing to the State Appellate Tax Board, 100 Cambridge Street, Boston, MA 02108, or call 617-727-3100. Revised 2/27/01 |
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