Understanding Your Tax Bill and Valuation

FISCAL YEAR 2024

Understanding Your Tax Bill and Valuation

The town operates on a fiscal year that runs from July 1st to June 30th. The total tax liability is billed in 4 quarterly payments as follows:

Quarter       Type of Tax Bill             Period Covered            Tax Payment Due

Q1               Preliminary                 July – September             August 1st

Q2               Preliminary                 October – December       November 1st

Q3               Actual                          January – March              February 1st

Q4               Actual                          April – June                      May 1st

Every year, as required by the Department of Revenue (DOR), all property in Marblehead is assessed. The fair market value is based on market sales of properties sold in town. All assessments are valued as of January 1st. To determine the timeframe or calendar year for the basis of valuations, you need to work backwards:

  1. Fiscal Year 2024 began on July 1, 2023.
  2. Date of Valuation is January 1, 2023.
  3. Preceding calendar year (2022) is used primarily for basis of determining values. The DOR provides latitude to extend that period +/- 6 months,  so market sales beginning July 2021 through June 2024 could be used.

Preliminary bills are calculated based on what you paid in the prior fiscal year and actual bills are based on current fiscal year valuations. Here are the steps used in calculating your bills this year:

  1. Take the prior Fiscal Year (2023) total tax paid and divide by 4.
  2.  This is the approximate amount to be billed for Fiscal Year 2024, Q1 & Q2.
  3.  After the town has been valued and the tax rate set, your total tax liability for Fiscal Year 2024 is determined.
  4. Subtract payments made in Q1 & Q2 above from the Fiscal Year 2024 total tax due.
  5. The balance due is divided in 2 and that is the amount billed in Q3 & Q4.

To see an example and calculate your tax bill click here.