SHREWSBURY – Shrewsbury’s fiscal year 2025 tax rate will be $12.04, a drop of 35 cents from last year’s $12.39 rate. It will be the town’s lowest rate since 2013. After a presentation by Principal Assessor Ruth Anderson, the Select Board unanimously voted to set the rate on Nov. 19.
The Assessor’s Department has valued Shrewsbury property at approximately $9.3 billion, an increase of $556 million, or 6.37% over last year; overall values have increased by $2.8 billion, or 43%, since 2021. While valuations are skyrocketing, the town’s numbers are comparable to state averages, Anderson said.
“Yes, values have gone up significantly in recent years, and, no, we’re not the only ones,” she said.
According to Anderson, the average single-family home assessment in Shrewsbury has increased by $39,612, or 6.14%, since last year. Single-family properties in Shrewsbury continue to sell for higher prices than in years past, but the number of sales has dropped. Through Oct. 31, 2024, Shrewsbury had 288 sales (compared to 346 in 2022) that sold for an average of $776,811 (compared to $669,207 in 2022).
With higher valuations —but a lower tax rate — the average single-family tax bill is expected to increase from $8,268 to $8,511, which is a jump of $243, or 3.03%, from last year, according to the presentation. In total, the town will raise about $112 million through taxation, which comprises roughly 59% of the 2025 budget.
The Select Board unanimously voted to keep a “single tax rate,” maintaining a “residential factor” of 1.00. A “single tax rate” taxes commercial and residential property equally. Some communities have a split tax rate, which taxes commercial and industrial property differently than residential properties.
The Select Board also unanimously voted against two exemptions. First, the board voted against a “residential exemption” that would have shifted the tax burden to higher-valued homes. The board also voted against a “small commercial exemption” that would have exempted 10% of the assessed value to properties valued at under $1 million and occupied by small businesses with 10 or fewer employees.
The exemption would go to the property owner, not necessarily the business.
“The small business that occupies the property is not usually the owner of the property. So they’re not responsible for the real estate tax … Enacting the ‘small commercial exemption’ would benefit the owner of the real estate – whether they pass that on to their tenants … There’s no way that the town can dictate that they pass those savings on,” Anderson said to the Select Board.
Shrewsbury hasn’t adopted either exemption in recent history.
