By Liz Nolan, Contributing Writer
Northborough – The Northborough Board of Selectmen held its annual tax classification hearing on Nov. 23 and voted unanimously to keep a single tax rate. The average Fiscal Year (FY) 2021 single family home tax bill will decrease by approximately $65.
Proposition 2- ½ is a Massachusetts statute that limits the amount of revenue the town can raise from local property taxes each year to fund municipal operations. Tax classification is a formal process and a policy decision in which the Board of Selectmen can decide to have one rate for residential property and another for commercial and industrial properties. Many local towns have one rate while neighboring Marlborough has a split tax rate.
“That shift does not raise any additional tax dollars,” said Town Administrator John Coderre. “It takes tax burden from one class and places it on another.”
Coderre said that 80 percent of the town’s budget is based on taxes and the tax base.
“What has been expressed over the years is that it is an issue of fairness and sustainability,” said Coderre. “Fairness in that everyone pays their fair share. Sustainability in terms of our long term economic development program is premised on getting businesses to come to town to locate here and treat them fairly.”
Northborough’s total valuation is up $95.07 million to $3.17 billion and the town saw certified new growth of $65.4 million between July 1, 2019 and June 30, 2020.
While residential and commercial property values remain level, industrial values increased 23.3 percent, mostly comprised of four new developments primarily on Bartlett Street.
“Those are the last of the significant economic industrial developments in town, because frankly we are out of land,” said Coderre. “The town of Northborough is approaching build out at this point.”
The amount of land available for residential development is also limited – only seven new single family homes were built.
Currently, the top taxpayers include retail, R&D, biotech, transportation and healthcare industries, many of which located or expanded in Northborough over the last 10 years.
“This has been our economic success story,” said Coderre. “These industries are stable and diversified.”
For FY2021, the average tax bill with the proposed 17.12 tax rate will be $7,900 based on the average home value of $461,432.
“I think we’ve struck, in my opinion, a very good balance of constraining spending, being very conservative budgetarily, encouraging good economic growth, and being conservative with our state aid resulting in a reduced tax impact for the average single family home at a time when they need it most,” said Coderre.
Principal Assessor Julie Brownlee discussed the split tax rate classification, which would allow the town to split the tax rate, currently the same for everyone, into two rates – lower for residential properties and higher for commercial/industrial properties. This would impact small commercial businesses as well; the Board of Assessors did not recommend this change.
The Board of Selectmen were all in favor to keep a single tax rate.
