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Taxpayer's Information - Property
Tax
What
is The Property Tax?
The major source of revenue for the 351 cities and towns in Massachusetts
is the property tax. In Berlin, approximately 68% of the revenue needed
to run the government and schools is derived from the property tax.
The property
tax is an "ad-valorum" (based on value) tax. The tax is apportioned
to individual properties based on the value of the property.
In Massachusetts,
estimates of value are called assessments. The assessment of a large number
of parcels for property tax purposes constitutes a highly specialized
field of appraisal. It is termed mass appraisal, and requires significant
statistical analysis in order to develop accurate values.
In Massachusetts,
the property tax, both real and personal property, is assessed to the
person who is the owner of record on January first. Any ownership subsequent
to that date can not be reflected on the tax bill.
In Berlin,
the physical condition of real property on January 1st is the determining
factor when establishing value for the fiscal year unless any new construction
or updates has occurred, then the assessment date is June 30th. This was
a local option acceptance of Mass General Laws (section and date) approved
by Berlin voters.
Abatement Procedures
Reasons for an Abatement
Overvaluation
- you feel the assessed value is too high.
Disproportionate Assessment - pertains to entire property classes, not
an individual unit or development. For example, the residential class,
as a whole, is assessed at 90% of fair market value, and the commercial
class is assessed at 110% of fair market value.
Improper Classification - for instance, a property is classified as commercial
when it is actually residential. Because Berlin has only one tax rate,
an incorrect classification would have no effect on the taxes that were
assessed.
Statutory Exemption - the property is exempt from taxation based on use.
Who May Apply
As a rule, an application may be filed by the person to whom the tax has
been assessed, or by the person acquiring title after January 1. The statutory
abatement procedure is in force only after the Fiscal Years first half
tax bill has been issued. This is usually in October, but may be mailed
later in unusual circumstances.
Abatement
Procedure
Application forms are available at the Assessors Office, Municipal Building,
23 Linden Street, Berlin, MA. Our hours are Monday-Thursday, from 9:00
AM to 1:00 PM and Monday nights, 7:00 to 9:00 PM.
The application for abatement must be filed no later than the due date
of the First Half Tax Bill. This is usually November 1st, but may be later
in unusual circumstances.
The application must be filed with and received in the Assessors Office
by the close of business on that day.
Payment of
Tax
To avoid interest charges, the full tax due must be paid by the due date
to the Berlin Tax Collector. Interest will be due if the payment is received
late.
If the total tax on real estate is over $3,000, the tax must be paid by
the date due in order to maintain the Right to Appeal an abatement decision
of the Local Assessors Office. Such appeals are made to the Commonwealth
of Massachusetts Appellate Tax Board, an independent administrative board
under the direction of the State government. Failure to pay in a timely
manner jeopardizes your right to appeal.
Additional
Information Request
The Board of Assessors is authorized, by state statute, to request information
that is necessary to properly determine the fair cash value of the property.
To preserve your right to appeal an abatement decision, you must provide
all information requested by the Board of Assessors. Failure to respond
to an information request, within thirty (30) days of the date on which
the request was received, will result in a denial of the application and
may bar an appeal to the Appellate Tax Board.
Action By
the Board of Assessors
The Assessors Office attempts to process all abatement applications within
three (3) months of filing. If they are not able to do this, there must
be a formal agreement in writing to extend that date. You will be informed
of the status of the application through the following notices:
Notice of
Approval. The Board of Assessors will abate the amount specified in the
notice. If the tax has been paid, the Town will reimburse the taxpayer.
Notice of Denial. No abatement will be granted. A denial will be issued
in cases where the Board of Assessors has made a decision based on the
merits of the abatement application; or for reasons of inaction, in cases
where the department has not made a decision on an abatement application,
within three (3) months of its filing date.
Appeal to the Appellate Tax Board
If you are dissatisfied with the decision of the Board of Assessors, you
may file an appeal to the Appellate Tax Board. It is located on the 3rd
floor at 399 Washington Street, Boston, MA 02108. The telephone number
is 617-727-3100.
Personal Exemption
An exemption is a release from the obligation of having to pay taxes on
all or part of a parcel of real property. Personal Exemptions are a reduction
in taxes due to a particular personal circumstance and qualifications
set forth in the Massachusetts General Laws. The burden is on the applicant
to show that he or she falls within the expressed terms of the exemption
provision.
Personal Exemptions must be filed no later than January first of each
year or three months after the mailing of the first actual tax bill (usually
in October), whichever is later.
Exemptions
are granted for one year only. An application must be filed each year.
Full or partial
exemptions are provided in the General Laws for the following persons:
Elderly, Clause 41C
Surviving Spouse (Widow/Widower), Minor Child of a Deceased Parent, Elderly
- Clause 17D
Blind - Clause 37A
Veteran - Clause 22
Tax Deferral - Clause 41A
How to Apply?
Elderly - Clause 41C
Applicants must meet the following requirements to be eligible for a Clause
- 41C exemption:
Must be 70 years or older or joint owner with a spouse who is 70 years
or older before July 1 of the tax year.
Must own and occupy property on July 1 of the tax year. Also must have
been continuously domiciled in Massachusetts 10 years prior to application
and owned any property in Massachusetts for the preceding five years.
Must have
gross receipts minus social security allowance less than:
$13,000 if single
$15,000 if married
Must have the value of the whole estate, not including the value of the
home, be less than:
$28,000 if single
$30,000 if married
Exemption Amount: $500
Surviving Spouse (Widow/Widower), Minor Child of a Deceased Parent, Elderly
- Clause 17D
Applicants must meet the following requirements to be eligible for a Clause
- 17D exemption:
Must have
Owned and occupied the property as of July 1 of the tax year.
Applicants whole estate, excluding the value of the property, may not
exceed $40,000
For Surviving Spouse exemption, must provide death certificate for deceased
spouse dated prior to July 1. This need only be provided the first year
of application.
Birth Certificate (Minor Child)
For elderly exemption, must have reached the age of 70 prior to July 1
and have owned the property for at least five years.
Exemption Amount: $175
Blind Exemption - Clause 37A
Applicants must meet the following requirements to be eligible for a Blind
- Clause 37A exemption:
Must be declared
legally blind as of July 1.
Applicant must be registered with and obtain a certificate from the Massachusetts
Division of the Blind as of July 1 or present a letter from their physician
stating that the applicant was legally blind as of July 1.
Must have owned and occupied the property as of July 1.
Exemption Amount: $437.50
Veteran with Service Connected Disability - Clause 22
Applicants must meet the following requirements to be eligible for a Veteran
- Clause 22 exemption:
At least
10% Wartime service connected disability.
Owned and occupied the property as of July 1.
Lived in Massachusetts 6 months prior to entering service or lived in
Massachusetts for five
consecutive years before filing for exemption.
Must have certificate of disability from the Veterans Administration.
Exemption Amount - varies with type of veteran's exemption.
Minimum $250 (most exemptions)
Maximum $950
Tax Deferral - Clause 41A
Applicants must meet the following requirements to be eligible for a Tax
Deferral - Clause 41A:
A tax deferral allows elderly taxpayers (over age 65), with annual incomes
of less than $30,000 to defer payment on all, or a portion, of their property
tax.
This deferral is not an exemption.
The amount of the deferral, together with 8% annual interest on the deferred
amount, must eventually be repaid when the property is:
Sold
Transferred or upon the death of the owner
The deferral becomes a lien on the property
A tax deferral should be considered when a taxpayer's current expenses
make the continued ownership of his/her home difficult.
How to Apply
The application must be filed with the Assessors Office within three months
of the date on which your Third Quarter bill was mailed.
How to Apply for Personal Exemptions
Taxpayers have three months from the mailing of the actual tax bill (usually
in December) to file a Clause Exemption Application with the Assessors
Office. Applicants should check the postmark of the Third Quarter bill
envelope.
Taxpayers must pay the full amount indicated on this bill by February
1, even if they have an application pending.
If their application is subsequently approved, the amount of the exemption
will be credited to their Fourth Quarter tax bill.
PLEASE NOTE:
The voters
of Berlin have approved an increase in the exemption amounts for qualifying
individuals at town meeting with the acceptance of Mass General Law
Chapter 126 of the Acts of 1988 amending Section 4 of Chapter 73 of
the Acts of 1986. This grants an additional exemption of 100% of the
approved exemption. This MGL must be approved each year at town meeting
and can be increased, decreased, or eliminated. The additional amounted
in not reimbursed by the state, it is paid by local tax revenues through
the overlay account.
A taxpayer may not receive more than one of these exemptions. If, however,
taxpayers qualify for more than one of these exemptions, the Assessors
will encourage them to apply for and receive the exemption that saves
them the most money.
The amounts of the exemptions range from $175 to $950, depending on the
exemption type.
There are other more specific exemptions (surviving spouse of police officers
and fire fighters killed in the line of duty, paraplegic veterans) for
which the Assessors can provide information.
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