WHAT IS PROPOSITION 2 1/2?
Proposition 2 1/2 places constraints on the amount to be collected by the town and on how much those amounts can be increased from year to year by the town. It provides the town with annual increases in their levy limits of 2.5%. With Prop 2 1/2 in effect, it sets the maximum amount a community may collect from the property tax: budgets must stay within that limit (or within the increased limits of any overrides allowed by voters).
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 Assessor 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 the three nationally recognized appraisal approaches to value: cost, income and market. This data is then correlated into a final value. The object of the valuation program is to estimate "full and fair cash value" as of January 1 (known as the "assessment date") prior to the
fiscal year. For example, the assessment date for Fiscal Year 2008 is January 1, 2007.
HOW CAN MY TAXES INCREASE?
When additional taxes are voted by the people, an individual's property tax bill will increase. Also, when market value increases, naturally, so does the assessed value. If you were to make improvements to your existing property, for instance: add a garage or add an additional room, the assessed value would also increase. The Assessor has not created the value. People make the value by their transactions in the marketplace. The Assessor simply has the legal and moral responsibility to study those transactions and appraise your property accordingly.
IMPORTANT DATES FOR THE PROPERTY OWNER
January 1:
"Assessment Date" for the following fiscal year.The ownership, use and physical characteristics of all property are "frozen" as of this date for determining assessments for the following fiscal year.
Late March/Early April:
Spring (second half) tax bill issued.
May 1:
Spring tax bill payment due.
July 1:
Fiscal Year begins. Qualification date for statutory exemptions.
September:
Town sets tax rate and secures approval from the state.
October :
Fall (first half) tax bill issued.
November :
a: Abatement application due, no later than due date of first actual tax payment for fiscal year.
b: Fall tax bill payment due, or no later than the due date of the first half tax bills. Statutory Exemption application due 3 months after fall bill postmark date, if actual tax bill.
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