What Property is Taxable?
Property Taxes and Assessments
The major source of revenue for the 351 cities and towns in Massachusetts is the property tax. In Haverhill, approximately 52% of the revenue needed to run the government and schools is derived from the property tax.
The property tax is an "ad-valorem" (based on value) tax. The tax is apportioned to individual properties based on the value of the property.
In Massachusetts, estimates of value are called assessments. The assessment of a large number of parcels for property tax purposes constitutes a highly specialized field of appraisal. It is termed mass appraisal, and requires significant statistical analysis in order to develop accurate values.
In Massachusetts, the property tax, both real and personal property, is assessed to the person who is the owner of record on January 1st. Any ownership subsequent to that date cannot be reflected on the tax bill.
In Haverhill, the physical condition of real property on July 1st is the determining factor when establishing value for the fiscal year. It is, therefore, important that any new construction be inspected as close to that date as possible in order to determine the level of completion as of the assessment date.
Personal Property - What Property is Taxable?
Tangible (that is, physical) personal property is subject to the personal property tax unless exempt by statute. Items defined as tangible personal property range from chairs in a barber shop to the furnishings of a doctor's office; from drills used by a dentist to the poles owned by a utility company.
What Property Is Exempt?
Tools employed by a plumber, carpenter, auto mechanic and other trade professionals are exempt from personal property tax. In legal terms, this exemption covers " tools of trade" of a "mechanic" (e.g. small tools that can fit in a toolbox).
Tools of other professionals not listed in the above paragraph are, however, considered taxable. These include dentists drills and x-ray machines. Computers are also subject to the personal property tax, but in cases where they are used by a corporation for internal use only, (e.g., for such functions as internal accounting or administrative operations), computers are not subject to taxation.
Tangible personal property subject to some other type of local tax is also exempt from the personal property tax. The Motor vehicle and trailer excise, ship and boat excise, the farm animal and equipment excise, and mobile home park license fees are all included in this category.
Intangible personal property is exempt from the personal property tax. Intangible property includes stocks, bonds and cash, mortgages and other evidence of ownership of property rights.
Information Requests
The Assessors may require an owner or lessee of personal property to provide certain information in writing, as may be reasonably necessary, to determine the actual fair cash valuation of the property. Failure to comply with the request within thirty (30) days will bar any appeal of the taxes assessed, unless the owner or lessee was unable to comply with the request for reasons beyond his/her control. Any false statement that is knowingly made will also bar the taxpayer from any statutory appeal.
Each year, prior to March 1, all persons subject to taxation must submit a list of all their personal property which is not exempt from taxation. These personal estate items must be included on the Form Of List. Blank Forms Of Lists are available at the Assessors Office, City Hall, Room 115, 4 Summer Street. (978-374-2316).
Abatement of Personal Property Tax
Applications for abatement must be filed on or before the due date of the Third Quarter tax bill.
Contact Us
Haverhill City Hall
4 Summer Street
Haverhill MA, 01830
Monday - Friday 8:00 - 4:00
Call Center 311 (within city limits)
(978) 358-1311 (outside the city)