MARLBOROUGH – The city’s estimated tax rates for fiscal 2025 are expected to be lower than the rates for fiscal 2024. However, because of increased property values, the tax bills for most classes of property owners will rise.
On Monday, Dec. 2, the City Council approved a tax shift of 1.45, meaning the residential rate would be $9.86 per thousand and the commercial/industrial/personal property (CIP) rate would be $16.96 per thousand.
Both rates are lower than fiscal 2024, when residential property owners were assessed $10.24 per thousand, and CIP owners were assessed $17.66.
According to the presentation to the council, property values have risen in most categories – the average single-family home increased from $553,439 to $593,345; condominiums from $316,218 to $351,162; a two-family home from $529,410 to $580,200; a three-family home from $592,605 to $660,088; and industrial properties from $2,794,576 to $3,049,371.
Commercial property values declined from $2,256,660 to $2,211,632.
That means for the average single-family home, the tax bill would go from $5,667 to $5,850, an increase of about $183.
Condominium owners should expect an average increase of $224 between fiscal 2024 and 2025, from $3,238 to $3,462. The owner of a two-family house should anticipate an average increase of $300, from $5,421 to $5,721. An owner of a three-family house may see an increase of $440, from $6,068 to $6,508.
For industrial property owners, the average tax bill would increase from $49,352 to $51,717.
A lower tax bill could come for commercial property owners. According to the presentation, the average tax bill of $39,853 for fiscal 2024 could fall to to $37,509 for fiscal 2025.
According to Principal Assessor John Valade, there’s been “somewhat of a shift” between the commercial and industrial sectors. On the commercial side, there are more vacancies in office buildings; on the industrial side, more life sciences companies are moving to the city.
“Commercial’s the one I’m worried about,” said City Council President Michael Ossing.
According to the presentation, the top 10 taxpayers in Marlborough include:
- Avalon Marlborough LLC (apartment complex) – tax bill of $1.518 million
- Boston Scientific Corp. (office – industrial) – tax bill of $1.278 million
- BH GRP TCAM Owner II LLC (office campus) – tax bill of $1.270 million
- GS Stonegate Project Owner LLC (apartment complex) – tax bill of $1.063 million
- TJX Companies Inc. (retail-offices) – tax bill of $1.053 million
- IPG Photonics Corp. (industrial) – tax bill of $1.033 million
- Atlantic-Marlboro Realty III LLC (office – R&D) – tax bill of $991,812
- Walker Realty LLC (retail/office) – tax bill of $840,159
- Retreat Marlborough LLC (apartment complex) – tax bill of $808,573
- Raytheon Company (computer management) – tax bill of $773,464
The final tax rates are subject to approval by the state’s Department of Revenue.
The council also approved two transfer requests to help offset the tax levy and lower the tax rate – $500,000 from the Overlay Reserve Account, and $41,775 from the Sale of Graves Revenue.
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