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Frequently
Asked Questions
What do I own that is subject to taxes?
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Three types of property are assessed and subject to taxes:
Real Estate, Motor Vehicles and Personal Property. Any land or buildings
you own fall under the category of Real Estate. Registered motorized or
non-motorized vehicles (such as cars, trucks, motorcycles and trailers) are
considered Motor Vehicles for tax purposes. Personal Property is a very
general category made up of unregistered motor vehicles, machinery,
equipment, furniture and fixtures, either owned or leased by business or
industry. Most residential taxpayers are not subject to Personal Property
tax unless they have an unregistered motor vehicle.
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How is property valued?
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State law requires that properties be valued at their
"present and true actual value", which means fair market value.
Real Estate is revalued once every 4 years to reflect changes in market
economic conditions. New construction completed after October 1st, is added
to the prior Grand List and is prorated from the date a Certificate of
Occupancy is issued, or from the date when it is determined that the
property is being used for its intended purpose, whichever is earlier.
Standard price guides are used in determining the value of your motor
vehicles. Owners of taxable personal property are required to annually file
a declaration by November 1st with the Assessor's Office of all owned or
leased property. Failure to return a properly completed declaration will
result in the Assessor valuing the property and adding a 25% assessment
penalty. Random audits of a business' books, federal tax returns and
physical inspections are performed to verify the information reported on
the declaration.
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How is the tax (mill) rate established?
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The Grand Levy is the amount of revenue in the annual town
budget, which must be raised by property taxes. The balance required from
fees, state and federal assistance and miscellaneous revenue. The Grand
List is a listing of all taxable properties located within the Town on
October 1st, of the Grand List year. The property tax rate is expressed in
mills (thousandths of a dollar). A tax rate (mill rate) of 14.0 is
equivalent to $14.00 of taxes per $1,000 of assessed value. The tax rate is
determined by dividing the Grand Levy by the Grand List.
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What about revaluation?
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State law requires that all taxable property be revalued every
12 years. Updates will be every 4 years beginning October 1, 2003. All
property in Sherman
is revalued effective with the October 1, 2008 Grand List year. The primary
purpose of revaluation is to provide equalization of all property types and
classes. The revaluation process is not intended to increase revenue, but
rather to keep the fair market value current, to insure that properties,
which have changed in value, are equitably assessed.
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When should I expect my tax bill?
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Property tax bills are sent out the end of June of each year.
Motor Vehicle tax bills are due in one installment on July 1st. Tax bills totalling less than $100 are due in one installment on
July 1st. Real Estate and Personal Property (Business) tax bills greater
than $100 are due in two installments on July 1st and January 1st
respectively (there is a 30 day grace period from the "due date"
to pay without penalty).
All tax bills are addressed to property owners on the October 1st Grand
List, unless the Tax Collector's Office receives specific instructions to
send the bills elsewhere. If you sold your real estate and receive a tax
bill, please forward that bill to the new owner, or return it to the Tax
Collector's Office with mailing instructions.
If you no longer own the motor vehicle on which a tax bill is based,
contact the Assessor's Office (860-355-0376). Please note that when you
receive your tax bill, 9 months of the year covered by the bill have
already passed. Motor Vehicle taxes are paid in arrears.
"NEVER" ignore a tax bill! Taxes remain due and interest will
continue to accumulate until the bill is paid-in-full, or removed by the
Assessor's Office. Unpaid tax bills remain active and accrue interest for a
period of 15 years in the State of Connecticut.
If you fail to receive a tax bill for a motor vehicle you own, call the Tax
Collector's Office @ 860-354-4146. Failure to receive a tax bill does not
exempt taxes or interest. You are responsible for obtaining your tax bill
and paying the taxes on time.
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What is a "Supplemental" motor vehicle tax bill?
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Vehicles registered between October 2nd and the following July
31st, will appear on a "Supplemental Motor Vehicle Tax List"
provided to the Assessor's Office by the DMV. The assessed value of each
"Supplemental" vehicle is pro-rated based upon the month of
registration. If you traded in a vehicle on a new vehicle, all taxes must
be paid on the vehicle traded in. You will receive a credit on the
Supplemental bill based on the total taxes billed on the original vehicle.
Supplemental Motor Vehicle tax bills are sent out in late December and are
due in one installment on January 1st (you have a 30 day grace period from
the "due date" to pay without penalty).
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What if I dispose of a vehicle after October 1st?
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You may be entitled to a credit or refund if your vehicle is
sold and not replaced, destroyed, stolen or removed from Connecticut and registered in another
state. Your tax bill will be prorated by the Assessor's Office based on the
month in which it was disposed. A request for adjustment must be made in
the Assessor's Office and written documentation regarding the disposal must
be provided. Application for adjustment should be made as soon as the
vehicle is disposed of since there is a stautory
time limit on motor vehicle adjustments. Failure to apply on time will
result in denial of the prorate.
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Who do I pay if I move within Connecticut?
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Motor Vehicle Taxes are due to the municipality where you lived
on October 1st, so even if you moved by the time you received your tax bill
the following July, you must still pay the town where you resided on
October 1st. Make sure you notify the Dept. of Motor Vehicles as soon as
you move and let the Assessor's and Tax Collector's Office have your new
address as well. All delinquent motor vehicle taxes are reported to the
DMV. You will not be able to renew or register any vehicle in your name
until "all" taxes, interest and fees are
paid-in-full.
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When does my tax bill become delinquent?
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Taxes must be paid within one month of the due date to avoid
penalty interest. Delinquent taxes are subject to interest at the rate of 1
1/2% per month ($2.00 minimum), or any part thereof, from the original due
date of the tax. In addition to the interest penalty, all lien fees on real
estate and collection costs on motor vehicle and personal property taxes
are the obligation of the taxpayer.
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What is the best way to make payments?
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Pay your taxes 24 hours a day, weekends and holidays by
transferring funds directly from your bank account using electronic check,
or by using your credit card.
FAST -------- EASY -------- SECURE
Transfer funds for only 25 cents per bill.
E-Check – www.townofshermanct.org
“Sign up to pay taxes on-line”
A history of your payments will also become available to assist you in
filing your state and federal taxes.
OR
In Person – Tax Collector’s Office, Mallory
Town Hall, 9 Rt. 39 North
OR
Mail – Sherman Tax Collector, P.O. Box 39,
Sherman, CT 06784
OR
Credit Card – www.officialpayments.com
(Jurisdiction Code 1703)
(There is a fee based on the total amt .charged.)
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What if I'm delinquent on my real estate taxes?
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The Tax Collector's Office sends out delinquent notices the
end of each month beginning in August. Interest is applied the 1st of each
month increasing the amount due by 1 1/2% of the "tax" due. Lien
notices are mailed the beginning of March and liens are recorded in the Town Clerk's Land Records in April on all real
estate with delinquent taxes due, at a fee of $24.00 to the taxpayer. All
taxes, interest and fees "must" be paid-in-full before the lien
will be released.
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What if I sell my real estate?
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The tax levied during the year of sale is usually pro-rated by
the settlement attorney based upon the date of sale. The original owners
pay the taxes due for the portion of the year they owned the property; the
new owner pays the taxes due after the date of sale. Be sure to notify the
Tax Collector's Office of the sale so we can change our records
accordingly.
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