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Board of Assessors - Frequently Asked Questions
1. WHAT DOES THE ASSESSORS DO? The Assessors are required by Massachusetts Law to list and value all real and personal property. Valuation is subject to ad valorem taxation, which requires the Assessors to tax property according to value. Assessed values in Massachusetts are based on “full and fair cash value”, or one hundred percent of the fair market value. Assessors are required to submit these values to the Commonwealth of Massachusetts Department or Revenue for certification every three years. The Assessors review property values in interim years, as well. This allows taxpayer to pays his or her fair share of the cost of local government in proportion to the amount of money the property is worth annually, rather than every three years. The Cohasset Assessors’ Office must assess approximately 3,200 parcels of real property, 175 personal property accounts, 7,000 motor vehicle excise accounts and 400 boat excise accounts. 2. WHAT THE ASSESSOR DOES NOT DO. The Assessors do not raise or lower taxes or create the laws that affect property owners. The Massachusetts Constitution requires that direct taxes on persons and property be proportionately and reasonably imposed. Taxes must be raised annually in an amount sufficient to cover the state and local appropriations chargeable to the Town. These taxes levied will include state taxes, which have been duly certified to the Board, Town taxes voted by the Town (including Proposition 2 ˝), and all taxes voted and certified by the annual town meeting. The Assessors are not involved with the collection of taxes. It is the responsibility of the Assessors is to apportion the tax burden according to the value of the properties in town, thus, allowing property owners to pay their fair share of taxes. The tax rate is determined by all the taxing agencies within the Town, and is the basis for the budget needed or demanded by the voters to provide for services, such as schools, roads, and law enforcement. Tax rates are simply those rates, or tax dollars per one thousand dollars of assessed valuation, which will provide funds necessary to pay for those services. 3. WHAT IS PROPOSITION 2 ˝? Proposition 2 ˝ places constraints on the amount of taxes that the town can levy and on how much the tax levy can be increased from year to year. It provides the town with annual increases in its tax levy of 2.5 percent and an additional amount based on the valuation of allowable new growth. With proposition 2 ˝, a minimum 2.5 percent increase in the total tax levy can be expected each year. 4. HOW IS YOUR ASSESSMENT DETERMINED? To arrive at “full and fair cash value” for your property through mass appraisal, the assessors must know what willing sellers and willing buyers are doing in the Cohasset sales market. The Assessors must collect and analyze a great deal of information about property and market characteristics in order to estimate the fair market value. The Assessors must analyze sales and sales trends occurring in the Town of Cohasset each year in accordance with Massachusetts Department of Revenue guidelines. Three standardized appraisal approaches to value are used: market, cost and income. The data is then correlated into a final value. The object of the valuation program is to estimate: reasonable cash value as of January 1 (known as the “assessment date”) prior to the fiscal year. For example, the assessment date for Fiscal Year 2012 is January 1, 2011. Therefore, sales of calendar 2010 are used in the fiscal year 2012 analysis to determine full and fair cash value. 5. HOW CAN MY TAXES INCREASE? When the people vote additional spending at town meeting there is the potential for an increase in taxes to occur. If you were to make improvements to your property, such as, adding a garage or additional living area, the assessed value would also increase. When market value increases, the Assessors seek to adjust the assessed values accordingly. In adjusting assessed values the Assessor does not create value; residents create value by their transactions in the marketplace. Depending both on the types of shifts in assessed value within the town and on the actions of the town’s budget producing bodies, this process of keeping assessments in line with the real estate market can result in an increase in taxes. 6. WHAT IF I DISAGREE WITH THE ASSESSMENT OF MY PROPERTY? If your opinion of the value of your property differs from the assessment value, feel free to come into the Assessors Office and research the valuation. The staff is willing to answer any questions about the valuation and assessment procedures. When questioning the valuation, ask yourself
There are many factors that contribute to the valuation. Consider recent sale prices, quality of construction, condition, neighborhood designation, the building area, and lot size. Many reports are available at the Assessors to assist you in determining whether your assessment is fair and equitable. Our staff is always willing to assist taxpayers. Taxpayers have the right to appeal their total valuation by filing an abatement application with the Board of Assessors in a timely manner. THE ABATEMENT APPLICATION DEADLINE IS THE SAME DUE DATE OF THE THIRD QUARTER ACTUAL TAX PAYMENT, USUALLY FEBRUARY 1ST. Please verify the deadline with the Assessors’ Office as it can vary if February 1st falls on a Saturday or a Sunday. The Board of Assessors has no jurisdiction to act on any applications filed after the deadline. If you wish to file for abatement, the applications are available at the Assessors’ Office after the mailing of the actual tax bills. When filing for abatement, remember that you are appealing your total assessment not your taxes. You must pay your taxes pending your appeal. The application form should include all information that you would like the Board of Assessors to consider in reviewing your case. Please provide reasons why you feel your assessment is inaccurate, such as data errors in the property description; and/or by citing recent sales or other assessments that indicate your assessment is too high. If you have refinanced or purchased your property within the previous year, perhaps, you could include copy of the appraisal report done by your bank or mortgage company. Abatement Denied
Abatement Approved
· You will receive a waiver with the adjusted valuation; and/or an abatement certificate indicating the amount of the abatement.
· Your abatement will normally be credited toward a subsequent tax bill in the same fiscal year. If your bill is paid in full at the time of the abatement, a refund check will be issued. NEW HOMEOWNERSPlease be aware that the Assessors are required to provide the tax bill to the assessed owner, the owner as of January 1st. However, the new property owner is responsible for paying the tax bill that is issued after the purchase date. If you have not received a tax bill, new property owners are advised to contact the Treasurer/Collectors Office for a copy of the tax bill, and the Assessors’ Office to update the mailing address. 7. WHAT TYPES OF EXEMPTIONS (REDUCTION FROM REAL ESTATE TAXES) DOES THE TOWN OF COHASSET OFFER? Several exemptions are available under Massachusetts General Law to reduce property tax obligations for certain qualifying taxpayers: elderly persons, blind persons, disabled veterans, surviving spouse or orphaned minor child, widow or orphaned minor of police officer or firefighter, and hardship. Exemptions are distinguished from abatements in that exemptions refer to the person while abatements refer to the property. The qualification date is July 1, the first day of the fiscal year. To qualify for most exemptions, the applicant must own and occupy the property as of the July 1 qualification date. In most cases, the applicant must have owned and occupied real estate in Massachusetts for the preceding five years and Massachusetts must have been the applicant’s domicile for the preceding ten years. When the third quarter actual tax bill is sent to taxpayers in late December, applications are due within three months of the mailing date. For certain exemptions, applicants may be required to provide a copy of their birth certificate, income tax forms filed in the previous calendar year, or a statement indicating that the applicant does not file tax forms, . If there are multiple owners of the property, the eligibility of the applicant may be affected; however, there are instances when a pro-rated exemption could be granted. The following table is a general overview of the exemptions that are available. If you think you may be eligible or have any questions, please contact the Assessor’s Office to discuss the details. PERSONAL REAL ESTATE EXEMPTIONS FOR FISCAL YEAR 2012(Social Security Deduction: Worker $4,158 Spouse $2,079 Combined $6,237) Clause Qualifications Income Assets Amount 17D Age 70 or older, orphaned children None $40,000 $350 41C Age 70 or older-single $18,000 $33,000 $2,000 41C Age 70 or older-married $23,000 $35,000 $2,000 Veterans 22 10%Disability or Purple Heart None None $800 22A Loss of foot, hand or eye None None $1,500 22B Loss of two limbs or eyes None None $2,500 22E 100% Disability/Unable to work None None $2,000 22F Paraplegic due to war injury None None 100% Others: 37 Legally blind None None $875 18 Extreme Hardship None None Discretion of Board of Assessors Deferred Tax Payment: 41A Age 65 or older $40,000 None Varies TAX DEFERRAL PROGRAM Many retired homeowners feel house-rich and income-poor. Property taxes constitute a serious financial burden, which can even force the sale of the home. Cohasset offers a tax deferral program, which enables owners to defer payment of up to 100% of annual property taxes. Deferred taxes accumulate with simple interest at 4% as a lien on the property until it is sold or the owner’s estate is settled. The total amount of such taxes due plus interest shall not exceed 50% of the owner’s proportional share of the full and fair cash value of such real property. OWNERS OF PROPERTY IN TRUST Trust ownership arrangements may affect qualification for a statutory exemption. As a general rule, an applicant must be a trustee and a beneficiary and provide: · A copy of a recorded trust instrument, including amendments · A copy of the schedule of beneficiaries. Consult your attorney if these requirements affect you. GLOSSARY OF ASSESSING TERMS
Abatement: A notice on an approved form to the Board of Assessors that the taxpayer disagrees with the assessment on his/her real or personal property. This must be filed no later than the due date of the 3rd quarter bill. This is usually February 1st. Appellate Tax Board: A quasi-judicial board for taxpayer appeal after a Board of Assessors has made a decision regarding an abatement application. Applications for appeal must be filed within three months from the date of the decision by the Board of Assessors. Appeals may be made with the Commonwealth of Massachusetts, Appellate Tax Board, 100 Cambridge Street, Boston, Massachusetts 02202 (617) 727-3100. Decision: After review of the abatement application, the Board of Assessors makes its decision on whether to grant or deny the application. Once this is done, the property owner has three months to file with the Appellate Tax Board. Exemption: A tax relief provision under Massachusetts General Law for certain qualifying taxpayers: elderly persons, blind persons, disabled veterans, surviving spouse or orphaned minor child, widow or orphaned minor child of a police officer or firefighter, and extreme hardship. Neighborhood Designation: This refers to the neighborhood or section of the town in which a property is located. It is the means whereby the assessed value of a property reflects the effect of its location within the town. New Growth: This is the term used to describe the additional Proposition 2 ˝ tax revenue raising capacity, which is permitted by reason of the new building construction that takes place within the town. Quarterly Tax Bill: The property tax bill in the Town of Cohasset is issued four times a year as follows: · First quarter Preliminary bill due August 1 · Second quarter Preliminary bill due November 1 · Third quarter Actual bill due February 1 · Fourth quarter Actual bill due May 1 The third quarter actual tax bill indicates the new assessment and new tax rate for the fiscal year. This bill reflects the calculation of the fiscal year total tax due and the deduction of the first two preliminary tax payments. The remaining tax due is divided in half to represent the remaining third and fourth quarter tax payments. IMPORTANT DATES FOR COHASSET PROPERTY OWNERS
February 1 The 3rd quarter actual tax bill is normally due on this date, as well as the application for abatement (unless it falls on Saturday or Sunday). March 1 Due date 3ABC filing for exempt entities, and Personal Property Form of List.
May 1 The 4th quarter actual tax bill is due. July 1 Beginning of the fiscal year, qualification date for exempt property classification, and the tax date for new construction. August 1 The 1st quarter preliminary tax bill is due, and due date for Boat Form October 1 Due date for chapter land applications (61A Agricultural, 61B Recreational) and IB3 filing for exempt entities. November 1 The 2nd quarter preliminary tax bill is due. Late December Mailing of the 3rd quarter actual tax bill, which reflects the new assessment and the new tax rate. Abatement applications are available at the Assessors’ Office. FEE SCHEDULE CERTIFIED ABUTTERS LIST $25.00 FIELD CARDS (two-sided) $1.00 REPORTS (computer generated) $.50 per page COPIES OF ASSESSORS’ MAPS ARE AVAILABLE FROM: Weston Graphics South Shore Industrial Park 45 Industrial Park Road Hingham, Massachusetts 02043 (781) 749-0936
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