Cambridge Tax Bill

It’s tax time in Cambridge! If you’re a home-owner in Cambridge, you probably received a letter from the Cambridge tax collector’s office asking for the first payment (out of two) for Fiscal Year 2010. A “fiscal year” is usually used for tax purposes. In Cambridge, Fiscal Year 2010 began on July 1, 2009 and ends June 30, 2010. Real estate taxes in Cambridge are due on November 9th, for the first payment, and May 3rd, for the second payment.

The amount you owe is based on the “assessed value” of your home or condo. For example, if your property is assessed at $533,700, and it is a residential property, your tax bill would be $4,120.16. The tax assessor is the one who assesses the properties in Cambridge for tax purposes only, so don’t be disappointed if he thinks that your property’s value is less than the real market value… In fact, in order to pay less real estate taxes, you want your assessed value to be as low as possible.

The formula to calculate Cambridge real estate taxes:

YOUR ASSESSED VALUE   X   0.001   X   $7.72   =   YOUR ANNUAL TAX BILL

But what if your property is overvalued?

The tax assessor’s office allows Cambridge home and condo owners to abate taxes. What is a tax abatement? Tax abatement is a reduction of taxes or an exemption from taxes granted by a local government on a piece of real property for a specified length of time. In our case, you, as a property owner, can argue that your property was overvalued by the tax assessor’s office and request the property be re-assessed. If granted, your property’s assessed value may be reduced and your real estate tax bill will be lower.

How To Abate Cambridge Real Estate Taxes?

First, you need to know your property’s assessed value. To check the most recent assessment, go to the tax assessor’s website and perform a search. If you feel that your property was overvalued, it’s time to abate the taxes.

To abate real estate taxes in Cambridge, you will need the proper Application For Tax Abatement Of Real Estate Tax Form. All applications must be submitted no later than November 9th 2009! So, if you don’t act quickly, your next chance will not be until be next year. Forms may be faxed (with a cover sheet) to the tax collector’s office at 617-349-4357.

What’s next?

Now you just need to wait for a response from the tax collector’s office. In most cases, they will send an appraiser to preview your property and will re-assess the property’s value. You will receive the final decision in the mail. Please note that you still need to pay your first payment as quoted to avoid 14% annual interest rate, if your property’s assessed value will be reduced, your second payment will be adjusted.

Your property’s assessed value may go up, if the tax assessor believes it should… so make sure you have a strong case. You may want to consult with your CPA, attorney, or real estate professional. If you have further questions, simply call the tax assessor’s office at 617-349-4343 or send an email to: assessors@cambridgema.gov