Property Tax

The major source of revenue for the 351 cities and towns in Massachusetts is the property tax. In Sturbridge, approximately 60.5% of the revenue needed to run the government and schools is derived from the property tax. The property tax is an "ad-valorum" (based on value) tax. The tax is apportioned to individual properties based on the value of the property. In Massachusetts, estimates of value are called assessments. The assessment of a large number of parcels for property tax purposes constitutes a highly specialized field of appraisal. It is termed mass appraisal, and requires significant statistical analysis in order to develop accurate values. In Massachusetts, the property tax, both real and personal property, is assessed to the person who is the owner of record on January first.

Any ownership subsequent to that date can not be reflected on the tax bill. In Sturbridge, the physical condition of real property on July 1st is the determining factor when establishing value for the fiscal year. It is, therefore, important that any new construction be inspected as close to that date as possible in order to determine the level of completion as of the assessment date. In 2003 the State of Massachusetts by Chapter 46, Sections 41 & 42 allowed the collection of a supplemental tax based upon the date of the issuance of an occupancy permit after the July 1st date. This tax would be in addition to the actual tax bill that was determined based upon the condition of the property on July 1. It is computed on a daily basis and covers the period from the date of the signing of the occupancy permit up to the end of the fiscal year (June 30).