Property taxes increase slightly

Property taxes increase slightly
Thursday, December 03, 2009
By SANDRA E. CONSTANTINE
sconstantine@repub.com

SOUTH HADLEY - Officials have adopted a property tax rate of $13.99 per $1,000 of valuation for fiscal 2010, which started July 1.

The new tax rate is for both residences and businesses and is an increase of $1.43 or 11.4 percent per $1,000 of valuation over last year's tax rate of $12.56 per $1,000.

The new property tax rates will mean that owners of the average single-family home, which is assessed at $232,600, will pay a fiscal 2010 tax bill of $3,254. Last year, the average single-family home was assessed at $253,300 and had a tax bill of $3,181.

The Selectboard and Board of Assessors voted unanimously Tuesday to keep the rates for businesses and residences the same on the advice of the Board of Assessors. In Massachusetts, under tax classification, communities have been allowed since the 1980s to shift some of the homeowners' tax burden onto businesses. However, the town has always elected to keep the rates the same.

Associate Assessor Melissa L. Couture told officials the Board of Assessors voted 2-0 to recommend that action on the grounds that making businesses pay higher taxes would be detrimental to the town's efforts to promote revitalization and economic development in the Falls section. In addition, at the same meeting, the Prudential Boards for Fire Districts 1 and 2 approved rates of $1.75 per $1,000 of valuation for Fire District 1 and $2.53 per $1,000 for Fire District 2. Last fiscal year's tax rates for Fire Districts 1 and 2, respectively were $1.62 and $2.33 per $1,000 of valuation. The two fire districts provide residents with fire protection and water service. Fire District 1 covers the Falls and the sections of town above it, while Fire District 2 provides services to the South Hadley Center and the northern section of town.

The bills for Fire Districts 1 and 2 for fiscal 2010 for the same house will be $407.05 and $588. Last year, those bills were $410 and $590, respectively.

Couture said that Proposition 2 1/2 allows the town to increase its total tax levy by no more than 2.5 percent plus new growth each year and that the 2.5 percent figure does not mean individual tax bills will not increase any more than 2.5 percent.

Meals and Lodging Tax increases - Click here for more information

MUNICIPAL TAX HIKES (September 25, 2009)

While most communities have so far not taken up the Legislature on its offer to allow them to boost local taxes on meals and lodging, many have quickly okayed tax hikes, which will take effect around the state on Thursday. The increases will affect prices at restaurants and hotels, depending on their location, raising the specter of some border disputes. On Aug. 1, the state sales tax rate rose from 5 to 6.25 percent but cities and towns have the option of tacking on another 0.75 percent to the meals tax and 32 communities are doing so. The list includes Amherst, Auburn, Bedford, Blandford, Boston, Brookline, Cambridge, Chelmsford, Chicopee, Dartmouth, Deerfield, Everett, Franklin, Gill, Hadley, Medford, Melrose, Nantucket, Northampton, Palmer, Plainville, Raynham, Saugus, Somerville, Southbridge, Springfield, Sunderland, Taunton, Tyngsborough, West Springfield, Winthrop, and Worcester.