Chelsea Council Sets Tax Rate, Institutes 25 Percent Exemption

By Seth Daniel

The Chelsea City Council voted to institute a 25 percent owner occupant property tax exemption and to apply the maximum commercial shift to help residents absorb a tax increase that has come due to sharp increases in residential property values.

While Chelsea had the opportunity to use up to 35 percent for its exemption, the Council chose to take a conservative approach in order to reserve some tax relief for upcoming years, when taxes are expected to rise further on the back of increasing property values.

“If the first 10 months are any indication, I expect property values are going up next year and I can almost assure you that taxes will be going up,” said City Manager Tom Ambrosino. “I urge you to save some of this exemption in order to have more tools in your toolbox for next year.”

The Council did agree to that course of action, voting 10-0 to institute the 25 percent exemption. The current exemption is set at 20 percent.

Meanwhile, the Council also voted 10-0 to institute the maximum residential factor of 175 percent, which shifts tax burden to commercial properties.

Property values went up across the board, but the largest increases came on three-families – which saw an 18 percent increase in values over last year.

The decisions made on Monday will help the Assessor’s Department set the tax rates for commercial and residential properties, which will have to be approved by the state Department of Revenue.

1 comment for “Chelsea Council Sets Tax Rate, Institutes 25 Percent Exemption

  1. Gordon501
    November 12, 2016 at 6:07 pm

    So the city council which is supposed to represent the interests of the resident property owners that elected them could have given resident property owners a 35% exemption but only gave us 25%. They are clearly not representing the best interests of the people that elected them. The idea of “saving” the 35% exemption for the future makes no sense; if they gave the 35% this year they can continue giving it in future years too. The massive increase in property taxes in recent years is getting to the point where it is beginning to lower the resale values of properties in the city. The massive tax increases of recent years combined with the big increase coming from CPA is likely to start forcing longtime residents from the city.

    Going forward the council and City Manager should use 50% of all tax revenue from new development to reduce property tax rates and not squander it on more city spending like they have been in recent years.

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