Condo conversions and tax bills
What to keep in mind about your tax bill during a condo conversion.
Tax bills for a given fiscal year always reflect the status of the property on January 1 prior to the start of the fiscal year. If a property is sold or the use of the property changes, those updates aren’t immediately reflected in a tax bill.
WHEN A PROPERTY IS CONVERTED INTO CONDOS
There may be a time before each unit owner gets an individual tax bill. However, each unit owner is responsible for a share of the total property tax bill. To find the amount each owner has to pay, multiply the unit owner’s percentage of interest in the common area by the bill amount.
Here’s an example of how you might share a property tax bill:
- A five-unit building converts to condos on August 30, 2023.
- The building gets a quarterly property tax bill in November 2023 for $2,500.
- The Master Deed for the building lists out the common area percentages for the condo units. The tax bill for each unit could be:
| Unit | Common area percentage | Tax amount unit owner needs to pay |
|---|---|---|
| 1 | 25% | $625 |
| 2 | 20% | $500 |
| 3 | 20% | $500 |
| 4 | 20% | $500 |
| 5 | 15% | $375 |
-
Still have questions? Contact:
Assessing
-
1 City Hall Square
Room 301Boston, MA 02201-2011
The timing of tax bills
For the 2024 fiscal year, most condo conversions recorded before January 1, 2023, will get first-quarter tax bills on July 1, 2023.
When there is a big condo conversion, or there is an issue with recording the conversion, we will send tax bills in the third quarter.
We will bill most conversions during the 2023 calendar year in time for the first quarter of fiscal year 2025 which will begin on July 1, 2024. Here’s a timeline:
| Calendar year of conversion | Fiscal Year where conversion is shown on first-quarter tax bill |
|---|---|
| 2022 | 2024 |
| 2023 | 2025 |
| 2024 | 2026 |
-
Still have questions? Contact:
Assessing
-
1 City Hall Square
Room 301Boston, MA 02201-2011
