FY25 property tax rates come in lower than initially estimated
By Adam Swift
Chelsea taxpayers are looking at some positive news on the property tax rates for Fiscal Year 2025.
The rate was recently certified by the state’s Bureau of Accounts, Department of Revenue. The residential rate for FY25 is $11.51 per $1,000 of valuation, while the commercial-industrial rate is $24.03.
“These approved rates vary from the estimated tax rates that were part of our tax rate presentation on October 28, where the residential rate was estimated to be $11.48 per thousand, and the commercial-industrial rate was estimated to be $24.04 per thousand,” stated City Manager Fidel Maltez in a letter that was read at Monday night’s city council meeting. “This variation is consistent with previous years and is due to the Department of Revenue applying their auto calculation methodology.”
The residential rate shows a considerable reduction from the FY24 rate, which was $11.90, according to Maltez.
According to calculations from the city’s assessing department, the average FY25 tax bill will decrease for all owner-occupied, median assessed value properties from single families to three families.
The decrease for a median owner-occupied single family home is calculated at $67 per year, condos will decrease $2.92, two family homes will decrease $77.43, and three family homes will decrease by $321.72 per year.
“The reduction in tax bills … are thanks to the incredible work of the City Council to minimize the impact on residential properties, and the two votes taken earlier this year,” Maltez stated. “The first vote is the setting of the Residential Exemption at the 35% exemption, the maximum amount allowed by statute. This provides the fullest possible tax relief benefit to owner-occupants, a reduction of $3,044 in FY25 per owner-occupied property.”
The second vote shifted the maximum amount allowed by law to commercial and industrial properties.
“While we celebrate these results, we know that this reduction in tax bills will be an anomaly in future years,” Maltez stated. “Our Administration will continue budgeting conservatively to protect our owner occupied properties, while continuing to provide amazing municipal services. I am confident that we will work with the City Council to ensure our positive trends continue.”