Under the laws of the Commonwealth, all cities and towns must be certified to assess properties at their "full and fair cash value." There are a few important terms to know when dealing with tax assessments.
The term "fiscal year" is the year for which the reassessment applies. Worcester's fiscal year begins July 1st and ends June 30th. Tax bills are issued quarterly on July 1, October 1, January 1 and April 1. The "tax date" or "assessment valuation date" is the January 1st preceding the fiscal year.
Market value, also known as "full and fair cash value," is the desired result of a reassessment. The assessments are certified by the Massachusetts Department of Revenue to be at full value by examining market sales and conducting valuation audits.
A tax assessment follows three important steps:
- Step 1: The Assessor values all taxable property at full and fair cash value.
- Step 2: The Assessor classifies every parcel of property according to use.
- Step 3: The value and the classification is used to determine the real estate tax.
There are four classes of property: Residential, Open Space, Commercial and Industrial.
Current Property Tax Rates:
Residential: $13.19 per $1,000 Assessed Valuation
Commercial: $28.61 per $1,000 Assessed Valuation
Real Estate Tax Online Payments
Quarterly Taxes
The City of Worcester issues real estate tax bills quarterly. The "preliminary" tax is calculated on the basis of the previous year's taxes divided by four. Preliminary tax bills are issued on July 1 and October 1. The "actual" tax is calculated from the new assessment and tax rate minus the preliminary tax divided by two. Actual tax bills are issued on January 1 and April 1. The change in taxes due to reassessment is reflected solely in the third and fourth quarters. Payments are due 30 days following the issue date.
Abatement
A Real Estate Abatement is a reduction in the tax assessed on your property for the fiscal year. To dispute your valuation or assessment or to correct any other billing problem or error that caused your tax bill to be higher than it should be, you must apply for an abatement.
- Overvaluation - The assessed value is too high compared to the actual real estate market.
- Disproportionate Assessment - Property is assessed in excess of assessments of comparable properties.
- Improper Classification - For instance, a property is classified as commercial land when it is actually residential land.
- Statutory Exemption - The property is exempt from taxation based on use.
- As a rule, an application may be filed by the person to whom the tax has been assessed, or by the person acquiring title after January 1. The abatement procedure is in force only after the "actual" tax bill has been issued.
- The application for abatement must be filed (received by the Assessor) no later than thirty (30) days after the date on which the "actual" tax bill was issued. These deadlines cannot be extended or waived by the Assessor for any reason. If your application is not timely filed, you lose all rights to an abatement and the Assessor cannot by law grant you one. To be timely filed, your application must be (1) received by the Assessor on or before the filing deadline or (2) mailed by United States Mail, first class postage prepaid, to the proper address of the Assessor on or before the filing deadline as shown by a postmark made by the United States Postal Service.
The Assessor has three months from the date of filing to process all abatement applications. You will be informed of the status of the application through the following notices:
- Notice of Approval - The Assessor will abate the amount specified in the notice. If the tax has been paid, the taxpayer will be reimbursed by the City.
- Notice of Denial - No abatement will be granted. A denial will be issued in cases where the Assessor has made a decision based on the merits of the abatement application.
- Notice of Deemed Denial - An application is deemed denied if the Assessor has not made a decision on an abatement application within three (3) months of its filing date.
The Assessor is authorized by law to request information that is necessary to properly determine the fair cash value of the property. To preserve your right to appeal an abatement decision, you must provide all information requested by the Assessor. Failure to respond to an information request within thirty (30) days of the date of the request, will result in a denial of the application and may bar an appeal to the Appellate Tax Board.
- To avoid interest charges, the full tax due must be paid by the due date. Interest will be due if the payment is received late.
- If the total tax on real estate is over $3,000, the tax must be paid by the date due in order to maintain the right to appeal an abatement decision of the Assessor. Appeals are made to the Commonwealth of Massachusetts Appellate Tax Board, an independent administrative board under the direction of the Commonwealth. Failure to pay in a timely manner jeopardizes your right to appeal.
If you are dissatisfied with the decision of the Assessor, you may file an appeal to the Appellate Tax Board located at Government Center, 100 Cambridge Street, Suite 200, Boston, MA 02114.
Alternatively, you may continue to use the Real Estate Tax Abatement Application. Include your phone number, sign, date and send along with the appropriate documents to the email address or fax number on this page. You may also mail your application to the Assessing Division.
Statutory Exemptions
State law allows several categories of tax exemptions for elderly persons over age 70 (subject to asset and income restrictions), surviving spouse (subject to asset limitations), blind persons and veterans with service related disabilities. These exceptions are called "statutory exemptions." Qualifying citizens must own their property in whole or in part and must apply annually.
Proposition 2 ½
Proposition 2 ½ limits the total amount of taxes that can be raised (2 ½% times the total assessed valuation) and the annual increase in total taxes that can be raised (the previous year tax levy + 2.5% more tax levy + new construction growth). Proposition 2 ½ does not limit the increase on an individual tax bill to 2 ½%. It limits the entire city as a whole from raising more than 2 ½% above the previous year's tax levy plus levy attributed to new construction growth. If a property changes in value relative to other properties, the taxes will change accordingly, perhaps increasing more than others or less so. Provided the assessed value is accurate, the taxes are regarded as fair, irrespective of the level of increase or decrease.
Income-Producing Properties Expense Reports
The assessor is required to assess all property at its full and fair cash value. The collection and analysis of rental data of income-producing properties is essential in the development of a fair and equitable valuation of your property and comparable properties. The information requested is for the assessor's use. It is not public record.
Please report only typical expenses; if a major repair was performed (i.e. roof replacement) do not report the full cost in one year.
Valuation Determination
Each year, the City Assessor determines the full and fair cash valuation of all real property and personal property estates for the purpose of taxation.
Have a Question?
Please send your payment and remittance slip to:
City of Worcester
PO Box 15602
Worcester, MA 01615-0602
Please make checks payable to: City of Worcester. If you do not have a remittance slip, for proper crediting, please write the parcel ID (Map, Block, Lot) on the check and include the property location and owner's name. To obtain a receipt, enclose a self-addressed stamped envelope and both portions of the bill with the payment.
You should request a duplicate tax bill via email or by calling the Treasurer's Office at 508-799-1075 to request the form.
Tax payments must be received on or before the due date to avoid interest charges. If payment is not made within 30 days of the original date of mailing, the account will begin to accrue interest at the rate of 14% per annum, computed from the date the bill was due. A demand notice will be sent and a demand fee of $5.00 is charged against the account. If the account remains outstanding 14 days after the issuance of the demand notice, a warrant notice is sent. The warrant fee is $9.00. Please note that demand and warrant notices are sent only on the third and fourth quarter bills. If the account remains delinquent after June 30th of the fiscal year, a tax lien (a legal claim placed on property for debt) is placed on the property and is recorded with the Worcester County Registry of Deeds. In addition, the property is placed in the tax title system. A tax lien is the first step in the foreclosure process. All taxes, costs and interest must be paid to prevent foreclosure.
If your taxes are escrowed by a bank or mortgage company, you will want to ensure that they make timely payment. Most banks and mortgage companies subscribe to a tax service that will notify them directly of the amount they need to pay for your taxes. However, if you have recently purchased, refinanced, or have a mortgage company that does not subscribe to a tax service, it will be up to you to notify them by forwarding your tax bill to them. DO NOT change your mailing address on your tax bill to be sent directly to the mortgage company. It will impede you from receiving proper notice of unpaid taxes. You may request that your mortgage company receive a duplicate tax bill if necessary by emailing us.
Under state law, failure to receive a bill does not affect the validity of the tax or any interest or fines incurred due to late payment(s). It is the responsibility of the taxpayer to secure his/her tax bill when one is not received. You can request a duplicate tax bill via email or by calling the Treasurer's Office at 508-799-1075 to request the form. The Treasurer's Office will mail you a remittance slip on request. However, the request must be received early enough to allow sufficient time to avoid late charges.
New owners will be automatically updated by the Assessor's Office upon receipt of a copy of the recorded deed from the Registry of Deeds. If the sale is very close to a tax due date, you may call the Treasurer's Office at 508-799-1075 or email us for a remittance slip to be sent to you. You may also update the mailing address on the bill by filing out the online form. The Collector of Taxes is required by Massachusetts General Law to issue the bill to the assessed owner as of January 1. Therefore, the old owner and the new owner will receive a tax bill until the following January 1.
If your check is returned due to insufficient funds, absence of signature, or technical error, the account will have the same status as an 'unpaid' account. You will receive notice from the Collector of Taxes notifying you of the insufficient funds. As provided by law, a penalty charge of $25.00 or 1% of the amount of the check (whichever is greater) will be assessed to your tax account for each bad check received, in addition to any other fees and interest applicable. You will be required to make payment by cash, certified check, or money order within 10 days.
If you or your mortgage company have paid the tax bill and for some reason you receive a demand notice for non-payment of the tax due, you must provide proof of payment. Please call us at 508-799-1075 for the requirements.
A refund check is issued to a taxpayer who has a credit balance on their bill, provided that they supply the City with the proper information and they have no other outstanding taxes due and payable to the City.
- If the credit was caused by overpayment, a request for refund should be accompanied by a copy of the canceled checks (front and back) for the fiscal year(s) in which the credit(s) exist. If the property has recently been purchased or refinanced, please also include a copy of the HUD Settlement Statement, which lists the details of the taxes paid at the closing. Please include your name, the property address, and the parcel ID with your request and payment information to City Treasurer's Office, Room 203, City Hall, 455 Main Street, Worcester, MA 01608.
- If the credit was caused by abatement, the refund will automatically be issued unless the property has changed hands during the fiscal year. When the credit on a Real Estate bill is a result of an abatement, the refund total may include 8% interest. The refund interest is calculated from the abatement date or the due date of the tax (whichever is later), to the issue date of the refund.
The refund will usually be returned to the record owner. If the property has been sold during the fiscal year to a new owner, the date of transfer (deed date) and the information on the HUD Settlement Statement will determine who is eligible for the refund. If you have any questions, please email us.
Contact Information
Address
Assessing
City Hall Room 209
455 Main Street
Worcester, MA 01608
Contact
Phone: 508-799-1098
Fax: 508-799-1021
Email Us
Hours
Monday - Friday
8:30 a.m. - 5 p.m.