Williamstown Tax Rate Increases Over Last Year
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Each year, the board can decide whether to "split" the property tax rate as a way to provide relief to residential taxpayers by placing a heavier burden on commercial and industrial properties.
"We don't have much other property that's not residential so its quite a percentage change to have a change in the tax rate," said Town Manager Peter Fohlin. "Usually split tax rates are used by communities that have a large industrial base."
By law, a community can add up to 50 percent of the total percentage of commercial property. For example, if the percentage of commercial property is 10, it can be made to bear up to 15 percent of the tax burden.
Williamstown, however, has less than 10 percent of the town's value is in commercial property and has actually seen its commercial sector drop by several percent over the past decade, according to the Board of Assessors.
"It's a fool's errand. There's not enough there to make it significant," said Chairman Thomas Costley, who added the town should be encouraging business to reverse the trend, then relieve homeowners. "A separate tax rate would do just the opposite — it would discourage businesses from coming here."
Fohlin also noted that many business owners also live in town so a split tax rate would only put money in one pocket and take it from the other.
The town has never had a split tax rate as far back as anyone can remember; it won't have one this year either. The tax rate for 2010 for all properties, including personal property, is $12.30, up from $11.40 last year.
The amount reflects a decrease in the overall evaluation, down from $1,115,942,600 in 2009 to $1,071,641,458 this year, and a higher tax levy, up nearly a half-million, from $12.7 million in 2009 to $13.2 this year.
The town's property valuation was approved by the state on Monday and the tax rate is expected to be approved by the Department of Revenue on Tuesday. Bills should be in the mail by Friday.
The board also:
■ Set the Democratic primary election for U.S. senator on Tuesday, Dec. 8, from 7 to 8 at the Williamstown Elementary School. Wednesday, Nov. 18, is the last day to register or to change party affiliation.
■ Set the sole December meeting for Monday, Dec. 14.
■ Approved allowing pouring establishment to close at the hour of their discretion on Christmas Eve and a number of annual alcoholic and victuallers licenses.
■ Approved borrowing $892,000 for the new drinking water well on Stetson Road and refinancing $740,000 for the Department of Public Works at a lower bonding rate that will save about $69,000 over eight years. The well will be paid through water bills.
■ Approved spending $133,600 in state Chapter 90 road funds for engineering plans and bid specifications for the reconstruction of Water Street. The town is hoping to gain stimulus funding for the project but has been told all planning must be complete before the application can be considered. If funded, the the engineering costs will be reimbursed.
The state grant the town has pursued last year appears to have bee "swallowed up by the stimulus plan," said Fohlin.
