It's one of the most vexing — yet explainable — questions homeowners/property taxpayers face: How can it be that my home's value has gone down but my property tax bill has gone up?
There are a fair amount of moving parts in the answer, but the quick take is that Proposition 2 1/2, the state's property tax limitation law, allows a community to increase its overall property tax collection (also known as a tax levy) by 2.5 percent, no matter what happens with valuations.
Some communities manage their budgets such that they wind up increasing the tax levy by less than 2.5 percent, but most communities, faced with rising costs, increase the property tax collection by 2.5 percent annually.
Communities with new growth in the tax base are allowed to increase their tax levy above 2.5 percent to reflect the tax that can be collected on new construction. The tax levy may increase by more than 2.5 percent in communities that adopt Proposition 2 1/2 overrides, or in communities that have yet to reach their tax levy limit.
It is also true that an individual homeowner's property tax bill may increase more than 2.5 percent because of changes in property values.
DOR's Division of Local Services has a wealth of information on property taxes and property assessment in its Municipal Data Bank. You can see how your town's tax rates stack up against those in other towns, review average single family tax rates, and see if your community is taxing up to its levy limit.
Courage at Work posted on Sep 1
“I was amazed that Mark and so many senior staffers took time out of their busy and hectic schedules to be supportive of me and the ALS cause,” she said. “It proves that no matter how challenging work is, there’s always time to show a little love.”
VIDEO: Introducing MassTaxConnect! posted on Aug 24
Take a look at our newest video introducing you to MassTaxConnect, our new, modernized online tax system. Hear from Commissioner Mark Nunnelly and several DOR employees about what to expect come November 30th when we launch MassTaxConnect for business taxpayers, practitioners, and professionals. Get an …Continue Reading VIDEO: Introducing MassTaxConnect!
What’s New with MassTaxConnect? posted on Aug 13
MassTaxConnect for Massachusetts Business Taxpayers Available November 30, 2015! Things are about to get easier and faster for Massachusetts business taxpayers. MassTaxConnect will replace WebFile for Business later this year and will feature the best of what WFB offers plus state-of-the-art enhancements to make tax …Continue Reading What’s New with MassTaxConnect?