When a parcel of land is severed--splitting it into two or more lot or parcels; or when adjoining parcels of land are consolidated by a single landowner, then the land’s assessment values and property taxes have to be redistributed accordingly.
Tax apportionments are determined by the Municipal Property Assessment Corporation (MPAC)—not the Town of Milton—after legal notification of land severance or consolidation is given. MPAC is responsible for apportioning the assessed value of the original property to the newly created properties. This apportionment will apply for the current year in which a severance or consolidation occurs. Depending on the time during the Town’s fiscal tax year, the apportionment could be back-dated or applied to a portion of the subsequent tax year—until such time as the assessment roll recognizes the newly created properties.
The assessed values on the newly created properties represent their proportion of the original property but may not reflect the current value assessment of the new properties had they been assessed individually.
For example: A 100 acre property valued at $500,000 applies for severance for 50 equal sized lots. MPAC will create an apportionment taking the original value of $500,000 and dividing it by 50. Each lot will represent a land value of $10,000 only. The following year true Current Value Assessment (CVA) will be applied to each individual lot.
Tax collection: Based on the assessment apportionment information supplied by MPAC, the Town of Milton distributes the taxes from the original property to the newly created properties in proportion to their relative value. Once Milton Town Council approves the tax apportionment, a letter is forwarded advising the individual property owners of the taxes owing to each, as applicable.
For years subsequent to the apportionment, the new properties are assessed individually and taxed based on their current value assessment.
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