Yearly Supplementary Assessment
Each year Town Council passes a bylaw which authorizes supplementary assessments to be prepared and supplementary taxes to be imposed. The assessor must prepare supplementary assessments for improvements (buildings) that are completed or occupied during the course of the year. The combined assessment/tax bill advises the property owner of the additional assessment amount that has been placed on the property as a result of the improvement being completed or occupied.
Supplementary assessments / tax bills are mailed no later than October 31, while payments are due December 31.
The supplementary assessment is the new total assessment less the previous assessment used for calculating the annual tax levy. The supplementary assessment will be prorated based on the number of months that the improvement has been completed or occupied (Assessed Months). The pro-rated supplementary property assessment is used to calculate the property tax levy.
A vacant lot is assessed at $200,000 as of December 31. In the following year, construction of a new home starts and is completed and occupied as of October 1. The new revised total assessment on the home is valued at $450,000, which consists of the land assessed at $200,000, and the building at $250,000. The supplementary tax bill is calculated as follows:
Type of Property: Residential Single Family
Less annual assessment (shown on annual tax notice in June)
Supplementary Assessment ($250,000) x Tax Rate (.00668) /12 (number of months in a year) x Assessed Months (3) = Amount.
It is important that you pay your taxes on or before December 31 to avoid a penalty .