The Board of Selectmen unanimously voted to set tax rates for 2013, and rates will actually see a decrease.
Homeowners will pay $13.72 per $1,000 of value, and businesses will pay $18.85 per $1,000 of value. Last year, the rates were set at $13.92 for residential and $19.16 for commercial.
The average single-family tax bill will likely increase by $3 per year. And the average commercial tax bill will decrease by $72.
This also maintains the 1.31 rate shift, meaning businesses will pay 1.31 times more than homeowners.
"We do support our businesses, and we support our residents," Selectmen Chair Bill Gordon said. "This adjusts both and creates the least impact on both groups."
The total tax levy -- the amount the town is to bill the community in taxes -- is almost $61.5 million for 2013. That number is allowed to increase by 2.5 percent each year, unless the town votes for a tax levy override.
"In the future, I hope we will try to take a harder look at the 2.5 percent to see if we really need to go all the way up to that," Smedile said.
The levy determines the rates each homeowner pays, as that large number is appropriated to residences and businesses based on value. And what the town needs in tax revenue is determined by the budget approved by voters each year. Residents pay about 83 percent of the tax levy, and businesses pay about 17 percent.
"Hopefully this shows people the importance of Town Meeting and increases attendance," Selectmen Tracy Watson said. "We set the rates in December based on the budget people approve at Town Meeting. People should realize the correlation between the two."
Bob Ercolini
11:06 am on Thursday, December 13, 2012
Business will NOT pay 1.31 times more than homeowners. While their tax rate maybe higher the amount they pay is based on assessment times their rate. So you have to look at assessments on businesses and understand that unlike homes they are generally not easy to determine and very seldom approach market values on their assessments. Accordingly, the Selectmen, to be fair to businesses and homeowners, adjust the tax rates to provide for the same percentage increase to both groups, usually without regard to new growth. SO stop saying and thinking that they pay higher taxes, as the rate is only one part of the formula that determines the actual amount they pay. As a point of reference on this issue, the BOS reviewed their rate determination policies a number of years ago and were shocked to see that despite dramatic growth in new business properties, the amount collected from them decreased every year and that decrease was funded by higher than 2.5% increases to homeowners. To stop that unfair shift of taxes, they have adopted a tax rate that now provides for the same percentage increase to each group and that meant adopting a higher tax rate for businesses to achieve this balance. I hope you understand and now inform people of what really happened , not some spin from businesses or worse ignorance of the issue you are reporting on.
Michael Quinlan
12:56 pm on Thursday, December 13, 2012
When was the last year the total tax levy did not increase by the maximum allowed, 2.5%?
Bryan McGonigle2
2:39 pm on Thursday, December 13, 2012
New Tax Rates: What Will They Mean? ... I think this article misleads more than it informs.
Are the valuations changing? I have a hard time believing property taxes are going down or staying roughly the same as the article suggests.
What was last year's levy? What was the new growth from last year?
The concept of "least impact on both groups" isn't explained very well.
I don't see how this directly ties into Town Meeting attendance. If more people attended town meeting, how would the budget be different?