HOW DO TOWN TAXES WORK / FREQUENTLY ASKED QUESTIONS

How are taxes calculated?

The Grand List of all property and the assessed values (70% x market value)  is compiled and certified by the Town Assessor.  The approved budget is then divided by the assessed value to come up with a mill rate.  This mill rate is multiplied with the assessment on each property to come up with the annual tax. 

            Example:        Assessed value $150,000

                                    Mill Rate: 22.88

                                    Tax:  $150,000 x 0.02288 = $3,432

When will the bills be mailed, due and when are payments considered to be late?

All real estate, personal property and motor vehicle tax bills are mailed at the end of June.  The due date on the bill will reflect July 1^st.  There is a month-long grace period with the last day to pay of August 1^st.  Postmarks are acceptable as on-time.

What is the interest rate on delinquent taxes?

The state requires all municipalities to impose an 18% tax rate per annum on outstanding taxes not paid by August 1^st.  The rate accrued is 1.5% per month on any principal tax amount due.  The due date is used when determining the time period the tax amount is late, hence even though August is the last day to pay, July 1^st is the date used when delinquent for the 1^st installment and January 1^st is the date used for the 2^nd installment.

Note:  There is a $2.00 minimum interest charge per state statute.

If I don’t own my car anymore, why am I getting a tax bill?

The Grand List is created for property owned on October 1^st of a given year.  The billing date is July of the following year.  It is very possible that you would have sold or junked your vehicle in that time.  The assessor’s office is responsible for reviewing documents and prorating assessments in these situations.  Please contact them and discuss what information they need to correct your account. 

I didn’t receive my bill, why do I have to pay interest when it wasn’t my fault?

Unfortunately not receiving a bill does not protect you from the accumulation of interest.  The state is clear that interest is not to be waived.  The bills are addressed as reported to the DMV on your registration.  If you have a change of address you must report that to the DMV to get the address corrected.  It is the taxpayer’s responsibility to inquire with the town if a tax bill is not received.   Hence if a bill isn’t received and the taxpayer doesn’t inquire, interest is still charged. 

It is January, I just received bill from the Town and I haven’t lived there in over a year.  Why am I still being taxed from this town?

This refers to supplemental motor vehicle taxes.  If you were a resident on October 1^st of a given year, then any vehicles acquired after that date but before July 31^st of the following year will be taxed in January from the same town.  This billing will not be done until January of the following year.  This results in the potential to be billed more than a year after you moved to a new town. 

What are your collection practices?

Bills are mailed at the end of June for the current year. If prior taxes are due, a statement to that fact will be included on the bill. The balance on the tax bill will not reflect prior taxes due or interest thereon. Please call for total due.

Delinquent notices are mailed in August on those accounts not paid on the current grand list.

The DMV is notified of the delinquency in accounts in September for all outstanding accounts within the 15 year statutory collection period. All accounts not paid on the current grand list accounts are assessed a $5 fee for this reporting to the DMV.

Supplemental Motor Vehicle notices are mailed at the end of December of the current year. If prior taxes are due, a statement to that fact will be included on the bill. The balance on the tax bill will not reflect prior taxes due or interest thereon. Please call for total due.

Real estate reminder notices are mailed during the 2nd week of January.

Delinquent notices are mailed in February on all accounts outstanding for the current year.

Demand and Lien notices are mailed in April on all real estate accounts outstanding for the current year.

Liens are filed in May.

Do you sell tax lien certificates? 

No.  We do not sell tax lien certificates. 

Do you hold sales by foreclosure? 

Yes. We will refer accounts for foreclosure for various reasons of non-payment. 

Do you conduct tax sales?

Yes.  We also do hold tax sales periodically to settle debts on various types of properties.