By Joan F. Simoneau, Community Reporter
Marlborough – The city's homeowners and commercial property owners will all see an increase in their taxes in fiscal year (FY) 2012 after the City Council approved rate increases at its Dec. 5 meeting.
The new rates are $14.81 for homeowners, up from the FY 2011 rate of $13.94 and $29.05 for commercial property, up from $27.55. The rates are for each $1,000 of assessed property value for both classifications. According to officials, the FY 2011 tax bill for the typical home was $4,280. The equivalent FY 2012 bill is estimated to be $4,479, an increase of $199 or close to 5 percent. An average retail strip mall will pay a little over $26,000, a jump of 1.7 percent or $425.
The council voted on the new rates after cutting the $88.6 million tax levy with $2.8 million in transfers that had been requested by Mayor Nancy E. Stevens.
After the current transfers are subtracted, the city will still have more than $11 million in reserves and a cushion of about $22 million below the maximum allowed by Proposition 2-1/2.
Acting Principal Assessor Dan Brogie said the projected value of a hypothetical single-family home would be about $302,412, a drop from this year's $307,047. Brogie was accompanied at the public hearing by Tony Arruda, a member of the Board of Assessors.
President and CEO of the Marlborough Regional Chamber of Commerce Suzanne Morreale-Leeber spoke in favor of the recommendation but asked councilors next year to consider narrowing the split in favor of the business community. She said it would attract new businesses to the city, ultimately helping to provide jobs and help the tax base. Fred Brewitt, a partner at Brewitt & Domke, also spoke in favor of the proposal, but emphasized a lower commercial/industrial tax levy for next year would make it easier for businesses to remain in the city.
Owners of lower-priced homes lost a real estate tax break last year when the City Council abolished a 3 percent tax exemption offered by the mayor and supported by the Board of Assessors. The exemption would have lowered the assessed value of all owner-occupied homes by $8,085, cutting the tax bill by just under $150.