Selectmen Set New Tax Rates

The unanimously approved new tax rates for the town for 2012.

Tax rates will go up for residents and local businesses, but not by much. On the residential end, the rate per $1,000 will increase from $13.52 to $13.92. This means a $435,350 home (the average median home value in town) will see a tax bill of $6,060, a $180 increase over fiscal year 2011.

On the commercial side, the rate will increase from $18.63 to $19.16. But while the rate has increased, it works out so that businesses will only see a tax dollar amount increase in the fourth quarter of the fiscal year.

Selectman William Gordon brought up the idea of setting tax rates so the town takes in less, in the amount of the projected meals tax revenues, since the meals tax involves many people from other towns paying the tax. But other members of the board, as well as Assistant Town Manager Ray Santilli, cautioned against that because the meals tax money is meant to fill in gaps in funding that will result from federal stimulus money going away and retirement costs increasing.

According to the assessor's office, the town is expected to raise more than $60 million in fiscal year 2012 with these new tax rates. Gordon also suggested using extra money to pay down the town's debt more aggressively, to lighten the tax burden in years to come.

Here are fiscal year 2012 tax rates for a few nearby communities. Andover, Haverhill and Boxford have not set their 2012 tax rates yet.