New Construction/Supplemental Tax Bills

Supplemental Tax Bills

What is a Supplemental Tax Assessment?

Massachusetts State law - MGL Chapter 59, Section 2D, requires that the Town assess and issue a supplemental tax bill on construction during the tax year whenever the following conditions are met:

1.  A temporary or permanent Certificate of Occupancy (CO) is issued during the tax year

AND

2.  The value of the building increases by more than 50%

How is the Supplemental Tax computed?

1.  The Board of Assessors reviews and establishes a value for your property as of the date of the Certificate of Occupancy.  The value is arrived at using the same parameters as all other assessed values in Stow.

2.  Your current building value is subtracted from your new building value, leaving the difference.  The difference is then used to calculate the additional tax due prorated for the time period from the date of the Certificate of Occupancy through the end of the fiscal year.

EXAMPLE:

Original Building Value a/o June 30, 2018:    $250,000

New Total Assessed Value:                           $500,000

Difference in Value:                                       $250,000

Date of CO:                                                   April 16, 2019

Days from CO to June 30, 2019:                   75

$250,000 x 20.13(FY19 Tax Rate)/1000=$5,032.50/365=$13.79 x 75 =$1,034.08

$1,034.08 = Supplemental Tax would be due.

3. Your supplemental tax bill is then issued and is due and payable within 30 days of issuance.

4. You also have the right to appeal the new value by filing an abatement application no later than the due date of the tax.

 

IMPORTANT!!!!!!!!!!!!!!!!!

IF YOU ARE PURCHASING NEW CONSTRUCTION, PLEASE CONTACT THE ASSESSORS' OFFICE PRIOR TO YOUR CLOSING DATE FOR SUPPLEMENTAL TAX INFORMATION