By Adam Swift
The city council is scheduled to hold its tax classification hearing and to vote on a split residential/commercial tax rate and a residential tax exemption at its meeting on Monday, Nov. 10.
Traditionally, the council has approved a 175 percent tax shift to commercial and industrial properties. In recent years, the council has also approved a 35 percent residential exemption, the biggest exemption allowed by state law.
The greater increase in the tax rate for commercial and industrial properties means that the greater burden of the tax levy will fall on those properties.
With a 35 percent residential exemption, the residential tax rate is expected to be $11.49 per $1,000 of valuation for FY26, a slight decrease from the FY25 rate of $11.51, according to Deputy City Manager for Finance Michael Mason. The commercial tax rate is expected to come in at $23.79 per $1,000, down from the FY25 rate of $24.03.
Although the tax rate is dropping, due to the increase in valuation for properties, it does not necessarily mean that tax bills will be going down.
Mason said there will be moderate to non-existent increases in the property tax bills for residents who own one- to three-family homes and condominiums.
From FY25 to FY26, the average value of single-family homes and condominiums have increased by about 5 percent. Two-family homes have increased on average by 2.6 percent, three-family homes by 8.5 percent, apartment buildings of four-plus units by 5.1 percent, commercial properties by 3 percent, and industrial properties by 4.1 percent.
According to Mason and Chief Assessor Jim Sullivan, the average monthly bill for a single-family homeowner would increase by a little over $10 per month with the residential exemption. The increase for two-family and condo owners would be even lower than that, while the average monthly bill for three-family homeowners would increase by about $50 per month.
In addition to the residential exemption and the tax rate split, there are also a number of exemptions available for senior citizens and disabled veterans.