Your lawyer is completely and absolutely incorrect. I don’t pretend to practice law, so your lawyer should not pretend to be an assessor!
Under Massachusetts state law, all property is assessed as of the previous January 1st. For example, when Fiscal Year 2027 begins on July 1st of 2026, we will be assessing property in terms of its ownership and “completeness” as of January 1, 2026. And, since Holliston has adopted Chapter 653, Section 40 of the Acts of 1989, assessors can add in the value of any new property not previously assessed right up until June 30, 2026.
Going back to the question, let’s say you are in the process of building a new home that you do not expect to be fully completed until the end of the summer. The Assessors’ Office will inspect that property in June to establish what percent is completed and that value will be included in your Fiscal 2027 assessment. The assessed value of the remaining construction will be reflected in your Fiscal Year 2028 assessment.
For example, based on size and workmanship, the house you are building is expected to be assessed at $900,000 when fully completed. As of June 30th, the Assessors’ Office determines the building is 65% completed. That $585,000 value will be assessed in Fiscal Year 2027. The remaining 35%, valued at $315,000, will be part of your Fiscal Year 2028 assessment.
The only time an occupancy permit factors into an assessment has to do with another part of state law: M.G.L. Chapter 59, Section 2D requires the town to assess and issue a supplemental tax bill on construction during a fiscal year if the value of the new building increases by more than 50% between June 30th and the date the occupancy permit is issued. A pro-rated property tax bill is calculated and issued to cover that increased value from the date of the occupancy permit until the June 30th end of the fiscal year.
Because these supplemental bills are calculated early in a new calendar year – a few months after people have received their “actual” bills for the third and fourth quarter of the fiscal year – the Assessors’ Office sends out letters of explanation to affected property owners several months before the actual supplemental bill payments are due.
