Supplementary Assessment & Tax
Supplemental assessment and tax provides for equity among property owners. When new homes and buildings are completed or occupied, the owners receive municipal services. Supplementary tax contributes towards the cost of providing these services. If a new building or addition to an existing building is completed in the calendar year, a supplementary assessment is prepared, representing an increase in value of a property.
A supplementary tax is determined by multiplying the supplementary assessment (the increase in value resulting from the construction or completion of a new home or building) by the tax rate, and pro-rating this amount based on the period of time the building has been completed or occupied for the current tax year.
For example: A new home is constructed and is completed or occupied on July 1, 2019. The increase in the property value resulting from the construction of the new home is assessed at $100,000.
- Supplementary Assessment: $100,000
- Residential mill rate (tax rate) for 2019: 10.133 per $1,000
- Days occupied: 184 (between July 1 and December 31)
- Supplementary tax levy: $100,000 x (184 days / 365) x (10.133 / 1000) = $510.81
When are Supplementary Assessment and Tax Notices mailed?
Supplementary taxes are levied only in the year that the newly constructed building is completed or occupied. Supplementary notices are mailed in November of each year, and due on December 31.