By Adam Swift
The city council unanimously approved two orders that will effectively set the property tax rate for Fiscal Year 2025 at its regular meeting on Monday night.
Prior to the vote, the council held a public hearing on adopting the minimum residential tax factor for FY25 with a 1.75 commercial, industrial, and personal property shift factor, as well as on the 35 percent residential exemption for FY25. No residents spoke during the public hearing.
City Manager Fidel Maltez had previously stated that Monday’s night vote will allow the city to meet all procedural deadlines ahead of sending tax bills by Dec. 31, 2024.
“We are recommending that we maintain the 35 percent exemption, the maximum amount allowed by the statute,” said Maltez. “This will provide the fullest possible tax benefit to owner-occupied properties.”
The second required vote under state law is for the city to determine the percentage of the levy that should be borne by each classification of property.”
The city has also historically always voted, by virtue of adopting a minimum residential tax factor that results in a 175 percent shift, to transfer to commercial and industrial properties the maximum amount of the tax levy allowed by law, Maltez has said.
With the 175 percent shift adopted, along with the 35 percent residential exemption, the residential tax rate will likely be $11.48 (pending Department of Revenue approval), and the commercial tax rate will be approximately $24.04 (pending DOR approval), according to Maltez.
The city manager said it will result in a reduction in the average tax bill for owner-occupants in Chelsea, including condominiums, single family, two-family, and three-family homes.