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Newton City Hall
1000 Commonwealth Ave
Newton Centre, MA 02459
617-796-1000
TDD/TTY 617-796-1089
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Monday - Friday
8:30am-5:00pm
Tuesday
8:30am- 8:00pm
CITY OF NEWTON, MASSACHUSETTS
IMPORTANT TAX INFORMATION FOR OWNERS OF NEWLY DEVELOPED CONDOMINIUMS
If you recently purchased a newly developed condominium (one unit of a two- family or three-family, or new construction for example), you should realize that the Assessment Department may not have your unit listed as a condominium, but as a two-family, three-family, etc., master parcel. Until the Assessment Department splits the parcel and assigns your unit a new parcel identification number, the tax bill is for the entire building! Review your master deed and determine your percentage interest in the master parcel (common areas). Your percentage interest in the master parcel determines the percentage you owe on the master parcel’s tax bill. Until you are billed separately for your own condominium unit, pay only your percentage interest in the tax bill and not the bill for the entire building. Contact the Treasury Department for a duplicate bill or payment history report as necessary. Contact Assessment to have your name added to the tax bill mailing address “in care of” (c/o). Note that only one unit can receive the original master parcel tax bill.
Per Massachusetts General Law Ch. 59 section 2A, the name of the record owner on January 1 must appear on the following fiscal year tax bill as that person is responsible for tax. However, after you enter into a private agreement with the seller/developer to purchase property, the seller has little interest in paying taxes on a parcel in which you own the beneficial interest. Therefore, it is in your best interest to pay the tax bill, as the City will put a lien on the property for unpaid taxes. So technically, you are responsible for paying taxes from the day you purchase. Typically, prior and current taxes due are paid during the settlement/closing and are listed on the HUD-1 Settlement statement. You are responsible for all back taxes that are not paid at closing. Most closing attorneys request a Municipal Lien Certificate from the City and will file same at the Registry of Deeds to protect your interest. If you subsequently discover back taxes or charges owed on the property for a period prior to your purchase, you should seek legal advice.
If your mortgage company pays your taxes and your tax bill is for the entire building, contact your mortgage company and inform them that the billing information contained in the electronic file they receive(d) is for the entire building, a “master parcel that has not been split.” Your mortgage company will need to know your percentage interest in the master parcel to ensure they pay only your percentage interest in the bill. Otherwise, your mortgage company will pay the taxes for the entire building out of your escrow account. Mortgage companies usually pay for the entire building because they do not realize that the tax bill is for a master parcel that has not been split. It is advisable that you both call and write a letter to your mortgage company to put them on notice that the master parcel has not been split. Enclose proof of your percentage interest in the building with your letter (usually shown as an exhibit in your master deed). Keep a copy of the letter for your records. Track the date, time and telephone extension of any representative that speaks with you. Please note that mortgage companies typically take tax payment funds from your escrow account a month before the tax due date. *Look at your mortgage statements a month before the tax due date (when they pull funds from your escrow account in order to pay your taxes on time) to be sure they are paying the correct amount.
When paying taxes under the master parcel’s identification number, keep all of your payment records and inform your condo association of same. PUT THE BILL NUMBER AND PARCEL IDENTIFICATION NUMBER ON THE FRONT OF YOUR CHECK, MAIL YOUR PAYMENT TO OUR OFFICE AT 1000 COMMONWEALTH AVENUE. KEEP ACCURATE RECORDS OF WHAT YOU PAID AND WHEN. Save your check copies and put them with your copy of the HUD-1 Settlement statement from the purchase. Payments processed by the cashiers in the Treasury Department have the check numbers documented in the payment history. Payments sent to the lockbox service (PO Box) must have an original bill enclosed with the check or our bank cannot process.
If there is a balance due on the master parcel after you get your own account number, you will be able to prove that you paid your percentage interest of the master parcel’s tax bill. The HUD-1 typically lists the tax period covered by the tax payment made by the attorney as a result of your closing. To calculate your tax liability, look to your HUD-1 Settlement statement to determine when you are responsible for paying taxes, then take the amount charged to the parcel for the upcoming quarter (which may or not be the billed amount) and multiply it by your percentage interest in the building. It is advisable that you work with the developer/seller and your condominium association to determine taxes to be paid.
If you have questions regarding how your building is listed for tax purposes, as well as when it will be split, please contact the Assessment Department. You can also look to the original bill, addressed to the January 1 record owner, for the class code: 102 = condo, 104 = 2 family, 105 = 3 family, 111 = 4-8 family, 112 = 8 + units.
It is City policy not to issue refund checks for credit balances in the current fiscal year because all tax bills for the current fiscal year have not yet been issued. If you or your mortgage company overpaid in one quarter, deduct that overpayment from the amount you owe in the next quarter. Inform your condo association of same.
Please refer to the Treasury webpage for the Refund Policy to see what documentation is required for refunding credit balances after the May 1st due date. Please read the Frequently Asked Questions (and answers) on our webpage.