Author: Municipal Finance Law Bureau
This month's Ask DLS features frequently asked questions concerning local tax collection. Please refer to our Local Tax Collection FAQs for more information on this topic. Please let us know if you have other areas of interest or send a question to cityandtown@dor.state.ma.us. We would like to hear from you.
What are the collector’s responsibilities in sending out property tax and excise bills?
The assessors commit the tax list and issue a warrant to collect the tax to the collector. After that, the collector is responsible for sending proper notice of the local tax or excise due. The General Laws, however, do not specifically state who is responsible for producing the bills. Absent a charter provision, ordinance or bylaw setting forth the responsibility for preparing the tax bills, the responsibility belongs to the collector or other department with funds budgeted for that purpose. Regardless of the department that produces the bills, the collector is responsible for ensuring the bills are proper and sending them. The collector should prepare an affidavit of mailing for each property tax or excise mailing. The affidavit constitutes prima facie evidence that the bills were sent on that date. G.L. c. 60, § 3 and § 3A.
Is the collector required to verify the address of each person to whom a property tax or excise bill is sent?
Sending the bills to the proper addresses is legally the collector’s responsibility. G.L. c. 60, § 3. The mailing address is the (1) residential address of the person assessed the tax if known, (2) address of the real or personal property that is the subject of the bill or (3) other address provided by the person assessed the tax to the collector by the time and in the manner the collector requires. If the person assessed the tax is not the owner when the bills are mailed, the bill may be mailed in care of the current owner(s). In that case, the bill must show the name of the person(s) assessed the tax and the name(s) and mailing address of the current owner(s).
The Registry of Motor Vehicles provides address information for motor vehicle excise bills, based on the address given by owners when they register their vehicles. G.L. c. 60A, § 6. Boat owners are required to file a form of list which provides their addresses. G.L. c. 60B, § 2.
What does the collector have to do if the following errors are discovered after the actual tax bills for the year are mailed?
In all cases, the collector has the option to reissue the incorrect bills. Reissuing the bills may establish new payment and abatement application due dates for those taxpayers depending on the payment system the community uses. For example, if the community uses the quarterly payment system and the reissued bills are mailed after December 31, May 1 becomes the due date for the balance owed and abatement applications.
A.) The tax rate was not printed on some or all bills.
The bills are valid and do not have to be reissued if both the commitment and bills display the correct valuations and assessed taxes for the year for the properties so that the correct applicable tax rate can be derived. However, taxpayers should be informed of the omission and the year’s rates through appropriate means. Those could include, for example, the municipality’s website, the local newspaper, local cable access channel, social media or mail/email notices to taxpayers, particularly to out of town taxpayers who would not have access to public information provided locally.
B.) Last year’s tax rate (or other wrong rate) was printed on some or all bills.
The bills are also valid and do not have to be reissued if both the commitment and bills display the correct valuations and assessed taxes for the year for the properties, but the correct applicable rate derived from them differs from the displayed rate. The discrepancy could be resolved on inquiry by taxpayers; however, there is potential for confusion and taxpayers must be notified of the error through appropriate means, as explained in A above, as soon as possible.
C.) The wrong valuations or assessed taxes were printed on some or all bills.
The bills are not valid and must be reissued if they display wrong valuations or assessed taxes for the fiscal year for the properties. Taxpayers who received those bills were not provided with adequate notice of their tax liability under G.L. c. 60, § 3A(a). Without the correct valuation or assessed taxes, they cannot make informed decisions about applying for abatement and may make insufficient payments.
D.) The wrong address was used on a bill.
Taxpayers are presumed to have received a tax bill sent to their correct address. Even if a properly addressed bill is not actually received, the taxpayer is liable for the tax, plus interest and fees if not paid when due.
However, if the bill was misaddressed, e.g., the taxpayer provided a timely change of address, but the bill inadvertently showed the prior address, interest does not accrue (and abatement rights are not triggered) until a properly addressed bill is issued under G.L. c. 60, § 3. The tax is valid and the taxpayer is responsible for its payment, but no interest accrues if payment is made within the due date established by the mailing of the properly addressed bill.
Does a city or town that accepts a local option statute or obtains a special act, that permits using a voluntary tax bill check-off for taxpayers to make contributions to certain public purposes, have to get specific approval from the Department of Revenue to add the check-off to its bills?
The form and content of property tax bills are highly regulated by statute, G.L. c. 60, § 3A(a), so a tax bill check-off for local contributions must be authorized by a general law or special act. Cities and towns may designate a place on the property tax bill (or design a separate form to be mailed with the tax bills) for taxpayers to check off amounts to donate to the local acceptance (1) scholarship and education funds authorized by G.L. c. 60, § 3C, (2) fund to assist low income elderly or disabled persons pay their property taxes authorized by G.L. c. 60, § 3D, and (3) veteran assistance fund authorized by G.L. c. 60, § 3F. They may also include check-offs for other donations when authorized by special act. The local funds check-off may also appear on or accompany the preliminary tax bill and demand notice.
However, the Department of Revenue does not approve the format on an individual community by community basis. The check-off is considered approved so long as it conforms to the requirements specified in the annual tax bill IGRs.
Could a collector include their endorsement letter for a local political candidate as a tax bill insert?
No. With the approval of the selectboard or the mayor, the collector may include non-political municipal informational material with the property tax bills so long as such inserts do not cause an increase in the postage required for mailing the tax bill. G.L. c. 60, § 3A(d). “Non-political” information means information that does not advocate for or seek to advance or influence a particular policy position or candidate. Municipal informational material means information that originates with the municipality and relates directly to its own operations, services or programs. For example, printed messages that disseminate facts about the municipality’s recycling program or schedule would be proper insert material.
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| Date published: | November 3, 2022 |
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