New Construction: Supplemental Billing
New Construction/Supplemental Tax Bills
Supplemental Tax Bills
What is a Supplemental Tax Assessment?
Massachusetts State law - MGL Chapter 59, Section 2D, requires that the Town assess and issue a supplemental tax bill on construction during the tax year whenever the following conditions are met:
1. A temporary or permanent Certificate of Occupancy (CO) is issued during the tax year
AND
2. The value of the building increases by more than 50%
How is the Supplemental Tax computed?
1. The Board of Assessors reviews and establishes a value for your property as of the date of the Certificate of Occupancy. The value is arrived at using the same parameters as all other assessed values in Wayland.
2. Your current building value is subtracted from your new building value, leaving the difference. The difference is then used to calculate the additional tax due prorated for the time period from the date of the Certificate of Occupancy through the end of the fiscal year.
EXAMPLE:
Original Building Value a/o June 30, 2022: $500,000
New Total Assessed Value: $1,000,000.000
Difference in Value: $500,000
Date of CO: April 16, 2022
Days from CO to June 30, 2022: 75
$500,000 x 18.35(FY22 Tax Rate)/1000=$9,175/365=$25.13 x 75 =$1,885.27 + adjusted CPA $250*
$2,135.27 = Supplemental Tax would be due.
3. Your supplemental tax bill is then issued and is due and payable within 30 days of issuance.
4. You also have the right to appeal the new value by filing an abatement application no later than the due date of the tax.
*CPA changes every year as the tax rate adjusts (assessed value-$100k x tax rate x .015)