Adams Sets Flat Tax Rate
ADAMS, Mass. – The town's residential property tax will stay flat and the commercial tax rate will decrease $1.40 per $1,000 valuation.
The Selectmen approved an 112 percent shift for commercial rates on Wednesday night that would keep the residential tax rate near $21.39 per $1,000 valuation and lower the commercial tax to $24.60. This is about a 5.38 percent decrease.
Town Administrator Tony Mazzucco suggested adopting a single tax rate of $21.92. He said because the town recently went through a re-evaluation and gained $25 million in value, it would be the best time to make the change.
"I am always a fan of a single tax rate, and I don't think you should split the tax rate unless you have a larger commercial base," Mazzucco said. "We just don't get a big benefit. If we had a much larger industrial base, we could shift a lot more."
He said 15 percent of the town's tax base is commercial and if the number was closer to residential the town would get "more bang for their buck."
Mazzucco said this would mean a 50 cent increase to the residential rate and a nearly $4 decrease for commercial and industrial.
He said if the town is going to make the change, it has to do it now.
"If you don't do it now you will never do it, and a revaluation year is the only chance to equalize the tax rate," Mazzucco said. "No matter how you do it some people are going to pay more in taxes. That's not an easy decision that everyone is going to enjoy but I would recommend a single rate."
Selectman John Duval said he would suggest keeping the shift exactly the same as fiscal 2016 at a 117 percent shift. This would mean a 24 cent decrease in residential and a 34 cent decrease in commercial.
"The business tax rate ... compared to North Adams and Pittsfield, we are much much lower, and I think we should ... give the homeowner an additional decrease in the taxes," Duval said. "I can pay these taxes but I can't imagine how some of the elderly on Social Security checks that get no increase in a home they want to stay in keep up."
Selectman Joseph Nowak agreed and said Adams needs to get the tax rate lower and more comparable to other communities in Berkshire County.
"We have to get that monkey off our back. Everyone that I know that does not live in Adams ... say we have the highest taxes in the county," Nowak said. "I think this will be somewhat of a good sign that we are doing our best and that we are starting on a path that may help us out in the future."
Nowak also said he felt that the split has often been skewed so that the businesses in town take on the biggest burden and he would like to see an equal split.
"I felt last year's rate wasn't evenly done, and I thought that the business community had to take on more of the tax needs," he said. "It is good to try to keep the business we have. To us, it might not be a lot but to business people, every little bit counts."
The board agreed that the compromise 112 percent shift would be the best way to go. The vote was 4-1 with Duval voting against.
The average house value in Adams is $137,619, making the new average tax bill $2,930.
Tags: fiscal 2017, property taxes, tax classification,
