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Town Government & |
Departments: Board of Assessors
Frequently Asked Questions What does the Assessor do? The Assessor is required by Massachusetts Law to list and value all real and personal property. Valuation is subject to ad valorem taxation on an assessment list 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 the fair market value. Assessors are required to submit these values to the State Department or Revenue for certification every three years. In the years between certification, assessors must also maintain the values. 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. The Hingham Assessors Office must appraise and assess approximately 8,000 parcels of real property, 300 billable personal property accounts, 20,000 motor vehicle excise accounts and 1400 boat excise accounts. 2. WHAT THE ASSESSOR DOES NOT DO. The Assessor does not raise or lower taxes. The assessor does not make the laws which affect property owners. The Massachusetts Constitution requires that direct taxes on persons and property be proportionately and reasonably imposed. In addition, the Declaration of Rights, Part I, Article 10, requires each individual to bear their fair share of the public expenses. 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 ½), and all taxes voted and certified by the annual town meeting. The Assessors Office handles no money and has nothing to do with the total amount of taxes collected. Rather, the responsibility of the Assessors is to apportion the tax burden according to the value of the properties in Town. In this way you pay only your fair share of the 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, law enforcement, etc. 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. Proposition 2 ½ places constraints on the amount of taxes which the Town can levy and on how much the tax levy can be increased from year to year by the Town. It provides the Town with annual increases in its tax levy of: 2.5 percent and an additional amount based on the valuation of certain new construction and other allowable growth in the tax base ("new growth"). With proposition 2 ½, a minimum 2.5 percent increase in the Town's 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, the assessors must know what "willing sellers" and "willing buyers" are doing in the marketplace. The Assessors also must collect, record and analyze a great deal of information about property and market characteristics in order to estimate the fair market value, including keeping current on cost of construction in the area and any changes in zoning, financing and economic conditions which may affect property values. The Assessor uses three standardized appraisal approaches to value: market, cost and income. This 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 2006 is January 1, 2005. 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 existing property, for instance: add a garage, add an additional room, the "full and fair cash value" and, therefore, 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. People 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, by all means come to the Assessors Office and discuss the matter. The staff will be glad to answer your questions about the assessment procedures. When questioning the assessment value, ask yourself three questions: Is my property description data correct? If, after discussing the matter with the 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. THE ABATEMENT APPLICATION PERIOD IS THE SAME AS THE THIRD QUARTER TAX PAYMENT PERIOD. The period during which you must pay your third quarter actual tax bill extends from the date the tax bills are issued until they are due. This is usually February 1st. Likewise, the period for filing an abatement application extends from when the third quarter tax bills are issued until the date they are due at 4:30 p.m., the close of business. If the application is mailed, the post mark must be on or before the due date.Abatement applications filed after this date and time cannot, by law, be acted upon by the Board of Assessors. If you wish to file for abatement, please come by the Assessors Office and pick up an application as soon as you receive your bill. Applications can not be submitted until after the tax bills are mailed. When filing for an abatement, remember that you are appealing your assessment and not your taxes. *You must pay your taxes pending your appeal. The application form is easy to fill out and the information you provide can be brief. But it is important to make a case to support your claim. That is, you need to provide reasons why you feel your assessment is out of line. For example, this can be done by pointing out errors in your property description; and/or by citing recent sales or other assessments which indicate your assessment is too high. We do respond to your specific concerns and comparisons. Have you refinanced or purchased the property within the last year? It may help speed the abatement process to submit a copy of the appraisal report, usually done through a bank or Mortgage Company. Abatement Denied You will receive a notice indicating your application was denied. You will receive a letter indicating the amount of the abatement. Your abatement will normally be credited toward your Spring tax bill. If your abatement is granted after your Spring bill is paid, you will automatically receive a refund check. ATTENTION: NEW HOMEOWNERS! Keep in mind that it is the owner of the property as of the January 1st assessment date each year who receives the tax bill. Yet, it is the new property owner who has the responsibility to pay bills, which are issued after the purchase date. Therefore, up to the first eighteen months of ownership, new property owners are advised to contact the previous owner if the tax bill has not been forwarded to them. 7. WHAT TYPES OF EXEMPTIONS (REDUCTION FROM REAL ESTATE TAXES) DOES THE TOWN OF HINGHAM OFFER? A variety of exemptions are available under Massachusetts 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 fire fighter, and extreme hardship. Exemptions are distinguished from abatements in that exemptions refer to the person while abatements refer to the property. The qualifying date is July 1, the first day of the fiscal year. When the third quarter actual tax bill is sent to taxpayers in late December, applications are due within 90 days of the postmark date. Because of the number and complexity of exemptions, the following table is intended only to give you a general idea of what is available. If you have the slightest suspicion you may be eligible or have any questions, call the Assessor's Office to discuss details! Note: that certain income limits include deductions (Clause 41C) and asset limits do not include the value of owner occupied condominiums, and 1,2,3 family houses. Certain exemption applications will require a copy of the tax forms filed in the last calendar year, or a statement indicating that the applicant(s) does not file tax forms. The number of owners of the property also falls into the review of qualification, which may mean non-eligibility of the exemption, a pro-rated, or a full exemption. Also, in certain conditions, if two or more persons, whether or not related or married, own a single parcel and each qualifies for a different exemption, each would be entitled to receive the exemption for which he or she qualifies. An additional qualification for most exemptions is the ownership and occupancy of the property. In most cases, the applicant must have owned and occupied real estate property in Massachusetts for five years (and owned and occupied the present property on July 1 in the year of application), and Massachusetts must have been the applicant's place of domicile for the preceding ten years. 8. What is the Community Preservation Act? Fiscal Year 2010: The Community Preservation Act (CPA) was voted on and accepted at our April 28, 2001 town election. The Act adds a 1.5 % surcharge to your real estate tax bill. However, there are exemptions to the surcharge. The first is a $100,000 residential exemption, which exempts the first $100,000 of assessed value from the 1.5% surcharge. This is only on residential property and will be applied automatically before the surcharge is billed. The next two exemptions are for low income and elderly families. If a family qualifies for this exemption they will pay no surcharge tax for the CPA. To qualify for this exemption your income must be below certain levels and you must complete an application including a copy of your most recent years tax return. The income qualification is from all sources and you must have income levels below what is shown in the table below. This surcharge will appear on the January tax bill. You must file an application for the exemption by March 31, 2010. Please contact the Hingham Board of Assessors as soon as possible if you qualify for one of these two exemptions.
1There are several different qualifications. The 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. Hingham 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 8% as a lien on the property until it is sold or the owner(s) has deceased. ATTENTION: 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 submit: 1. A copy of a recorded trust instrument, including amendments; 2. A copy of the schedule of beneficiaries. Consult your attorney if these requirements affect you! AN ADDITIONAL ALTERNATIVE: THE The Board of Selectmen began and Town Meeting adopted the state initiative called the Property Tax Work-Off Program, a program to permit older residents to reduce property taxes by up to $500 per year by volunteering for the Town. Please contact the Senior Center for details.
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