Chapeter 6 Real Estate Taxes & Other liens

Question 1

When do Property Taxes start for the new year?

Answer 1

They technically start on Jan 1st but a lot of municipalities create a fiscal year and send out the new bills on July 1st

Question 2

What is the Purpose of Real Estate Taxes?

Answer 2

The Purposes of Taxes are to fund the Communities Budget

Question 3

How are Tax Bills Calculated?

Answer 3

Tax Bills are based on 100% of a properties cash value or fair market value

Question 4

When are Tax Bills for Improvements due?

Answer 4

Annually November 1st

Question 5

What is Prop 2.5

Answer 5

Adopted in 1980 Prop 2.5 relates to the total amount of property taxes a city or town can raise each year. Taxes can not be raised more than 2.5% nor can it increase more than 2.5% year over year.

Question 6

When are liens allowed to be placed on Properties?

Answer 6

Mass Law provides that taxes on Real Estate become a lien on the property as of Jan 1 in the year of the assessment.

Question 7

A lien for unpaid taxes is superior to other liens how?

Answer 7

It is a lien on the entire property and is superior to all over liens and must be paid off before all others

Question 8

What is Mass General Law 60 & 65

Answer 8

States that if property taxes go unpaid for two years after they are due. They may be collected by a tax sale on of the property. The owner then has 6 months from the date of the tax sale to redeem the property (Pay off everything that is owed) the owner can retain the property otherwise the deed passes to the purchaser.

Question 9

What are Municipal Lien Certificates?

Answer 9

A Municipal Lien Certificate (MLC) indicates unpaid real estate taxes, water charges, betterments, assessments, and other unpaid or current financial obligations levied by the town or city against the Land