How Does Newton's Tax Rate Compare?
The Department of Revenue releases the latest rates for CIP in Massachusetts. How do Newton's rates compare?
Tax rates have gone up a small amount since to last year, but how do they compare to some of the other towns and cities in Massachusetts? The Department of Revenue released tax statistics from towns all over the state recently, and Newton's rates seem fairly middle-of-the-road compared to some neighbors.
For more detailed information comparing the tax statistics for different Mass. towns, check out the Department of Revenue documents.
In November, the Newton Board of Aldermen decided to slightly adjust the city's tax shift. For the first time in six years, the board moved a small amount of the tax burden off local businesses, which will ultimately bring in more money for the city.
With numbers based the city's median single-family property value of $680,500, the shift will cause single-family tax bills increased by $247, or 3.36 percent in fiscal 2012. Meanwhile, the median commercial tax bills increased by $1,046, or 6.9 percent.
The shift, which was approved at a 174 percent, determines how much of the annual tax levy the commercial, personal, industrial and residential property owners are responsible for. Since 2005, the city has stuck with a 175 percent shift.
Newton-Needham Chamber of Commerce President Bob Halpin spoke briefly during the tax classification hearing in November, advocating for a tax shift that would benefit the local businesses.
"A small shift does have big consequences for those small businesses," Halpin said.
Some Peer Town Tax Rates
Rates are per $1,000 of valuation.
|
Community |
Residential Rate |
Residential Rate |
Commercial and Industrial Rate |
Commercial and Industrial Rate |
|
|
2012 |
2011 |
2012 |
2011 |
| Newton | 11.17 | 10.90 | 21.32 | 20.89 |
|
Brookline |
11.40 |
11.30 |
18.58 |
18.30 |
|
Lexington |
14.97 |
14.40 |
28.45 |
27.28 |
| Waltham | 13.35 | 13.09 | 31.27 | 30.43 |
|
Needham |
10.95 |
10.90 |
21.50 |
21.50 |
|
Wayland |
19.01 |
19.35 |
19.01 |
19.35 |
|
Watertown |
14.40 |
13.92 |
26.64 |
25.87 |
Dan Fahey
11:32 am on Sunday, January 8, 2012
This analysis seems to ignore there is another variable to be considered: the increase or decrease in average assessed value of properties from year to year.
If for instance average assessed value were to drop by 10%, in order to achieve even the same revenue from one year to the next, the tax rate would have to rise by a comparable percentage [actually 11%]. Then the increase in the tax levy of 2 1/2% would be on top of that.
The point is one must take account of aggregate assessed value changes for the analysis to be meaningful.