Understanding Your Property Tax Bill and Valuation


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:

Fiscal Year 2020 began on July 1, 2019.

Date of Valuation is January 1, 2019.

Preceding calendar year (2018) is used primarily for basis of determining values.  The DOR provides latitude to extend that period +/- 6 months, so sales beginning July 2017 through June 2019 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:

Take the prior Fiscal Year (2019) total tax paid and divide by 4.

This is the amount of you will be billed for Preliminary bills for Q1 & Q2.

After the town has been valued and the tax rate set, your total tax liability for Fiscal Year 2020 is determined.

Subtract payments made in Q1 & Q2 above from the Fiscal Year 2020 total tax due.

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, please click here.