Property Taxes to Increase
Residents of Massachusetts can expect an increase in the average property owner’s tax rate by next year. The Department of Revenue has reported that 21 community property tax rates have been approved and all but the towns of Eastham and Alford plan to increase rates on residential and commercial property (Boston Business Journal).
The expected steep increase in average rates can be attributed to high jobless rates and falling property values which both contribute to a decrease in government revenue. Fortunately for some, Proposition 2 1/2, a law preventing the collection of property tax for an individual to increase by more that 2.5% year by year, will limit property tax increases.
Bad news for commercial properties in the city of Everett—the city boasts the highest commercial rates in the state at 41.66% for every $1,000 in assessed property (Boston Business Journal). Cambridge on the other hand has a commercial rate of just 20.76%. Both Cambridge and Everett’s new rates for the 2013 fiscal year are yet to be approved.