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Frequently Asked Questions (FAQs)
- Who pays the surcharge?
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The owners of residential and commercial property pay the Community Preservation Act (CPA) surcharge.
- How is the Community Preservation Act (CPA) surcharge calculated?
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For residential property owners, the surcharge is calculated as 1.5% of the product of the net assessed property value and the tax rate. The net assessed property value is the total property value annually established by the Board of Assessors less the $100,000 exemption in value adopted by the Town. Commercial properties are not eligible for the $100,000 exemption.
- When is the surcharge ordinarily billed and due?
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The surcharge was imposed on the actual tax bills for Fiscal Year 2012. It was displayed as a separate item on the last two tax bills, with due dates of February 1 and May 1.
With the CPA surcharge being effective FY2012, the amount shown on each of the 3rd and 4th quarter tax bills (issued December 2011 and March 2012, respectively) reflected the actual surcharge. The actual surcharge was based on the FY2012 tax rate and FY2012 assessed values which were established in the fall of 2011.
The surcharge, subsequently, will be imposed on all preliminary and actual tax bills, in other words effective FY2013. The 1st and 2nd quarter tax bills will be based on 50% of the previous year's CPA surcharge. For example, the surcharge on the 1st and 2nd quarter tax bills for FY2013 will reflect 50% of the FY2012 surcharge. The 3rd and 4th quarter tax bills will reflect the actual surcharge net of estimated 1st and 2nd quarter payments. For example, the actual surcharge on the 3rd and 4th quarter tax bills for FY2013 will be based on the FY2013 tax rate and the FY2013 assessed values which will be established in the fall of 2012.
- How long will the CPA remain in effect?
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The CPA remains in effect for a minimum of five years from the date of voter approval in a municipality. After five years, it can be revoked in the same manner to approve the CPA originally - by a majority vote of the legislative body and by referendum. The surcharge continues to be assessed, however, until all obligations incurred and funded by the city/town from Community Preservation Fund revenues are paid.
- Can the level of the CPA surcharge be amended?
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A city/town may amend the surcharge percentage and exemptions. Amendment is by a majority vote of the legislative body and by referendum.
- What is motor vehicle excise tax?
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Under MGL Chapter 60A, all Massachusetts residents who own and register a motor vehicle must annually pay a motor vehicle excise. Also, under MGL Chapter 59, Section 2, it is important to note that every motor vehicle, whether registered or not, is subject to taxation, either as excise or personal property, for the privilege of road use, whether actual or future. The excise is levied by the city or town where the vehicle is principally garaged.
- What is the rate?
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The rate is $25 per one thousand dollars of valuation. This is the standard rate for the entire Commonwealth.
- How is the value calculated?
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The excise tax law (M.G.L. c.60A, s.1) establishes its own formula for valuation for state tax purposes whereby only the manufacturer's list price and the age of the motor vehicle are considered. The formula is as follows:
- In the first year: 90%
- In the second year: 60%
- In the third year: 40%
- In the fourth year: 25%
- In the fifth and succeeding years: 10%
If a new car is purchased a year preceding the model year, for example, a 2012 car is purchased and registered in 2011, the vehicle is valued at 50% for 2011 excise, then 90% for 2012 excise, etc.
- Is the bill prorated?
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Excises are prorated on a monthly basis. If a motor vehicle is registered after the beginning of any calendar year, no excise will be imposed for those months, if any, which have fully elapsed before the vehicle is registered. If a vehicle is registered for any part of a month, however, the excise will be due for all of that month. The annual excise due on a car registered after January 1 will be reduced, therefore, by one twelfth of the full year's excise for every month prior to the one in which the vehicle was registered.
- I no longer reside in Belmont. Do I still have to pay this bill?
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The owner must pay the motor vehicle excise to the city or town in which he/she resided on January 1st.
If the owner moved to another city or town within Massachusetts prior to January 1st of the taxing year, then the owner needs to supply proof of residency as of January 1st, such as a copy of a utility bill or voter registration. Submit a copy of either document with an abatement application. If the owner’s new address appears on the bill, then the owner needs to supply the date of move with an abatement application.
If the owner of a vehicle moves out of Massachusetts and registers their vehicle in another state and cancels his/her Massachusetts registration, he/she can file an application for an abatement for that portion of the year after the month in which the motor vehicle was registered in the new state. A copy of the out-of-state registration is needed to file for an abatement. The license plate needs to be returned to the Massachusetts Registry of Motor Vehicles, in which case the Mass. RMV will process a Plate Return Receipt to the owner. A copy of the Plate Return Receipt is needed to confirm to the Assessors that, by the generation of the receipt, an excise bill will not be processed for this motor vehicle to this owner with this registration in the following calendar year.
- Retrieve an Application for Abatement of Motor Vehicle Excise Tax (Fillable PDF Form)
- Retrieve an Application for Abatement of Motor Vehicle Excise Tax (Online Form)
- How does the Assessors’ Office determine the value of my house?
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Massachusetts law requires that all municipalities establish the full and fair cash value of all real estate as of January 1st of the prior year.
- What does "of full and fair cash value" mean?
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The courts have defined this phrase to mean "current market value"; the price arrived at by a willing buyer and a willing seller, each with a good knowledge of the market and each acting without undue pressure or compulsion. Thus, in determining value, assessors seek to approximate what property would sell for on the open market, within an acceptable range of error.
- How is Mass Appraisal different from a Fee Appraisal?
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A revaluation uses mass appraisal methods and techniques, meaning we appraise many properties at once. Mass appraisal is typically done for property tax purposes and the effective valuation date for all mass appraisals in Massachusetts is January 1st of the revaluation year. A fee appraiser appraises only one property at a time. The appraisal is done for a specific reason, such as purchase, refinance, estate valuation, etc. The date of the appraisal is typically the day it is appraised.
- What is the basis for determining residential property values?
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- Sales of vacant and improved properties are the primary source of data.
- Land values are set using all available land sales.
- Analysis of new construction is done to establish construction costs, including builder's profit.
- Analysis of older homes establish the amount of depreciation indicated by the current market.
- Costs of outbuildings from building permits and advertised prices are used to indicate outbuilding values.
- Why do land values change at different rates from building values?
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Land values change at a different rate than improvement (structures) values. Since building costs and values have not changed at the same rate as land values, the bulk of any total change may be attributable to land. This makes good economic sense, as it is land that is in limited supply.