Frequently Asked Questions
What do I own that is subject to taxes?
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?
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?
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?
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, 1999 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?
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?
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?
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?
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?
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?
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?
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?
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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