NORTHBOROUGH – The Select Board voted to adopt a single tax rate of $14.25 during its Nov. 18 meeting.
The fiscal 2025 values were based on property values as of Jan. 1. According to Principal Assessor Lee Keomanivong, overall, Northborough’s property values increased by 6% from $4.26 billion to $4.5 billion.
Northborough experienced $36,692,719 in new growth value, including seven new single-family homes, one new two-family structure, two new warehouses, two new retail buildings and several major renovation and addition projects.
The tax levy is $64,378,721.
Single tax rate
Every year, the Select Board must determine the percentage of the tax levy to be paid by the property classes and decide between two options — a single tax rate in which all classes would be taxed at the same rate or a split tax rate where the residential property class’ share would decrease while the combined share of commercial, industrial and personal property (CIP) increases. The Select Board unanimously approved a single tax rate of $14.25.
According to Keomanivong, for an average single-family property valued at $664,045, the average tax bill will be $9,463. This is an increase of $564 from fiscal 2024, but it is a decrease from the original projected tax increase of $616.
The tax on the average commercial property is expected to increase by $871 to an average of $23,572 from the previous fiscal year.
“It’s good news because the body at Town Meeting approved a budget increase that everybody knew would cost them an additional $616 for an average single-family house, but the same budget is actually coming in better than that at $546,” said Chair Mitch Cohen. “It’s the right direction that we would want to go relative to an early estimate.”
Keomanivong said that compared to neighboring communities, Northborough’s single-family tax bill typically falls around that of Shrewsbury and Grafton. According to his presentation, in fiscal 2024, the average single-family tax bill in Shrewsbury was $8,261, followed by Grafton at $8,532, Northborough at $8,917, Westborough at $11,680 and Southborough at $12,427.
Keomanivong discussed the “pros” and “cons” of a split tax rate. The “pros,” he said, is that it would offer residential property owners tax relief. However, the “cons” are that it would shift a greater burden onto higher-valued CIP properties that already pay a large portion of the levy, it is not seen as “business friendly,” higher commercial taxes can reduce commercial values over time and increases are typically passed onto tenants and the majority of Northborough businesses are tenants.
During the meeting, Corridor 9/495 Regional Chamber of MetroWest President/CEO Karen Chapman advocated for maintaining the single tax rate.
“Under your current single tax structure, Northborough has prospered through the development and growth of businesses, which has led to new jobs and tax revenue in your town,” she said.
“Under your current single tax structure, Northborough has prospered through the development and growth of businesses, which has led to new jobs and tax revenue in your town,” she said.
Several board members noted that Hudson has a split tax rate. According to the town’s website, Hudson’s residential tax rate is $14 with the average single-family home valued at $555,573, and its CIP rate is $27.50.
The split rate has been in place since at least 1994, according to the website.
Select Board member Laura Ziton said that her gut reaction was to maintain the single tax rate.
“I like the idea of Hudson,” she said. “I think they had their Business Improvement District, but I think that would be something that we would need to have our economic development committee do first to really lay out the groundwork because I know that Hudson did some really creative things for their businesses when COVID hit. But, I think for right now my preference is to do more research on it other than just shifting the burden.”
She said she hoped the board could find other ways to save money on taxes for residents.
The Select Board also did not opt to adopt an open space discount, residential exemption or small commercial exemption.
