If you have purchased a home that is newly built, the property may be subject to an additional real estate tax, known as the Supplemental Real Estate Tax. Massachusetts law requires the Assessors to assess Supplemental Taxes on property when the value has increased by more than 50% when an occupancy permit is issued after January 1. While this could apply to any property, it is most often triggered by new construction.
If your property falls into this category, you will receive a Supplemental Tax bill. The assessment is based on the value of the improvement, multiplied by the tax rate, and prorated for the amount of time remaining in the fiscal year after the occupancy permit is issued.
Please note that if your real estate taxes are paid by your mortgage company through escrow, it is your responsibility to make your mortgage company aware that these additional supplemental taxes are due.
If not paid timely, Supplemental Real Estate Taxes are subject to all collection remedies allowed under Massachusetts state law, including the placement of a tax lien on the property. For more information, refer to Department of Revenue IGR 03-209.