Town of Wellesley, Massachusetts

What are Real Estate Taxes?

Real estate is the physical land and all that’s affixed to it. The tax on it is an ad valorem (based on value) tax and funds the local government.

Approximately 75% of the Town of Wellesley’s budget (including schools) is funded through property tax.

How are Real Estate Taxes Calculated?

It is the responsibility of the Assessors’ Office to establish the taxable valuation of each individual piece of property in the Town. However, the Assessors do not create value. Buyers and sellers create the value via their transactions in the marketplace. The Assessors have the legal and moral responsibility to study those transactions and assess the property accordingly.

At Town Meeting each year a budget is voted on by Town Meeting Members taking into account the limits of Propostion 2 ½, and how much money will be needed to meet all appropriations and other expenses. The Assessors have no control over the town’s budget.

The difference between the amount approved and the money received from other revenue sources (i.e., state aid, licensing fees, permits, automobile excise) must be raised by property taxation.

The valuation assessments are developed independently from the budget and are used only in the last step of the budgeting process to distribute the Tax Levy. Changing property values does not affect the overall Tax Levy, but it does redistribute the levy. The Assessors calculate the annual tax rate as a means to distribute the Town’s budget obligations.

The tax rate is calculated by taking the total tax to be levied and dividing it by the total valuation of taxable property. This results in a tax rate expressed in dollars per thousand dollars of valuation.

For Fiscal Year 2010:

Total Tax Levy $ 94,163,155

Total Assessed Value $ 8,981,931,000 = $ 10.48/1,000

How do I dispute my Real Estate Tax Bill if I think the property value is too high?

The appeal process for disputing your property tax bill is via the Abatement Procedure. The application is available at the Assessors' Office in Town Hall, or by clicking here, and must be filed after the mailing of the Third Quarter tax bill (December), but no later than the close of business on February 1^st. No abatement can be granted unless the application is filed on time.

If you think your assessed value is wrong, you must provide your opinion of value on the abatement application. You may attach an appraisal to the application to support your opinion of value, but realize it is another appraiser’s assumption and may have been influenced by the purpose of the appraisal.

The Board of Assessors has 90 days from the date the application was received to act on the appeal. Each and every appeal will receive written notification of the Assessors' action.

Filing an appeal does not put your tax payment on hold. Tax payments need to be rendered in a timely manner in order to protect further appeal rights to the Massachusetts Appellate Tax Board. Any abatements to taxes are adjusted on the fourth quarter bill. If there has been an overpayment, a refund is generated at the close of the fiscal year (June 30th).

If you are dissatisfied with the decision of the Board of Assessors, you may file an appeal to the Appellate Tax Board. This must be done within three months of the Assessors' decision.

What is Proposition 2 1/2?

Proposition 2 ½ is the title given to an initiative petition adopted by voters in Massachusetts in 1980.

The principal features of Proposition 2 ½ are related to the total amount of property taxes which a city or town can raise each year. It contains two limitations on the amount of property taxes to be raised:

1. The property tax levy ceiling (the amount raised) can never exceed 2 ½ % of the full cash value of all taxable property in the city or town. A tax rate cannot be higher than $25.00 per $1,000 of valuation.

2. The property tax levy limit cannot be increased more than the 2 ½ % over the prior year’s levy limit unless voters approve to override the cap.

The levy limit provisions of Proposition 2 ½ affect the total amount of taxes to be raised by a city or town. It does not apply to an individual tax bill.

Whether the tax rate for a community will increase or decrease from the prior year will depend upon the levy within the community. It also depends on whether property values appreciate, depreciate or remain steady in the particular community.

Are there any tax savings programs available for qualified individuals?

Click here to review our current Tax Relief Programs.

What if I cannot afford to pay my Real Estate Taxes?

A tax deferral (Clause 41A) allows an elderly taxpayer to defer all or a portion of their tax obligation.

vReached the age of 65 as of July 1 of the current tax year

vOwned and occupied the property for at least 5 years as of July 1

of the current tax year

vResided in Massachusetts for at least 10 years

vA gross income not exceeding $50,000

The tax deferral option should be considered when a taxpayer’s current expenses make the continued ownership of the home difficult. Through special legislation the Town of Wellesley is allowed to charge a low interest rate. Starting with fiscal year 2005, the interest is calculated annually based on the monthly two-year constant maturity Treasury rate for the month of July at the beginning of each fiscal year.

The interest rate for FY 2010 is 1.05%

The deferred amount will become a lien on your property and must be repaid with interest when the property is sold, transferred or upon the demise of the owner.

Applications must be filed annually with the Board of Assessors within three months of the mailing of the Third Quarter Tax Bill (December of each year). An applicant has the option of deferring all or a portion of their annual taxes.

As a reminder, the mere filing of an application does not mean you can postpone the payment of your tax.

It is important to note that tax deferral may be used in conjunction with other exemption programs.

Contact the Assessors' office for more information or download an application by clicking here.

How do I pay my Real Estate Taxes?

Real Estate taxes are billed and payable quarterly over the course of the Town’s fiscal year (July 1 – June 30). The due dates are August 1, November 1, February 1 and May 1 (or the Monday that follows these dates if they fall on a weekend).

By Mail: Send a check and the payment stub in the envelope provided or to: Tax Collector, P.O. Box 9187, Wellesley, MA 02481-9187. Please do not include any other correspondence as this envelope goes directly to the bank for immediate deposit.

On-line: on-line bill pay.

In person: If you want a receipt or need to pay by cash or simply want to pay in person, come to the Wellesley Town Hall, 525 Washington Street, 1^st Floor, Treasurer/Collector’s office between the hours of 8:00 AM and 5:00 PM.

Questions regarding the payment of your bill can be directed to the Office of the Treasurer/Collector at (781) 431-1019. ext. 2266.

How do I change the mailing address for my real estate tax bill?

It is important to note that this address will be used for all notices mailed from Town Hall as related to real estate records. Although address changes will be accepted via e-mail, it is important to note that Ownership and/or name changes cannot be processed through e-mail. A recorded deed or other legal document must be provided.

Click here to send an address change request via e-mail.

Please provide the following information when submitting your request:

1. Property Location

4. If not the owner, relationship to owner

5. New Mailing Address

Address changes for excise tax bills must be made with the Massachusetts Registry of Motor Vehicles.

Feel free to contact us directly with any other questions.

525 Washington Street

Tel: 781-431-1019 ext. 2275