Difference between revisions of "Local Politics:Issues:Understanding Your Tax Bill"
| Line 15: | Line 15: | ||
* [http://www.mass.gov/dor/local-officials/municipal-finance-law/frequently-asked-questions-motor-vehicle-excise.html FAQ for motor vehicle excise] | * [http://www.mass.gov/dor/local-officials/municipal-finance-law/frequently-asked-questions-motor-vehicle-excise.html FAQ for motor vehicle excise] | ||
* [http://www.mass.gov/dor/docs/dls/ptb/pdfs/question2add.pdf How the motor vehicle excise tax is computed] | * [http://www.mass.gov/dor/docs/dls/ptb/pdfs/question2add.pdf How the motor vehicle excise tax is computed] | ||
The excise tax is deductible on your federal income tax, provided that you itemize deductions<ref>Cf. [http://www.boston.com/business/taxes/articles/macpa/askcpa/vehicle_excise_tax/ Is vehicle excise tax a proper write-off for itemized tax deduction?] (last accessed Dec 8, 2013)</ref>. | |||
===Notes=== | ===Notes=== | ||
Revision as of 00:12, 8 December 2013
Lexington residents get real estate tax bills four times a year, and excise tax bills for other property (automobiles, trailers, boats, etc).
The Real Estate Tax Bill
Residential real estate tax bills are mailed quarterly. Residences are assessed at their fair marker value on Jan 1st, the fiscal year begins July 1st, and the tax rate is set by the Board of Selectmen in December of the same year.
- The first two real estate tax bills mailed in July and Oct represent preliminary estimates (since the tax rate is not known until December).
- The last two tax bills, mailed in Jan and April, are different in that they:
- List the assessed value and the tax rate
- Are computed so the total of the four tax bills equals the assessed value times the tax rate.
The tax bill includes a Community Preservation Act surcharge, which is up to 3%[1].
The Excise Tax Bill
Excise tax bills are mailed once a year, in Spring. You will receive a separate tax stub from the Lexington office of the collector of taxes, although the tax rates are set by the state. For details, please refer to:
The excise tax is deductible on your federal income tax, provided that you itemize deductions[2].
Notes
- ↑ See the Community Preservation Committee homepage (last accessed Dec 7, 2013). Lexington has adopted the Community Preservation Act (CPA) on March 6, 2006. The Commonwealth matches a portion of the CPA surcharge, but the amount changes each year.
- ↑ Cf. Is vehicle excise tax a proper write-off for itemized tax deduction? (last accessed Dec 8, 2013)