ADAMS, Mass. — The Board of Selectmen approved a split tax classification with a 130 percent tax shift onto commercial property for fiscal 2023.
The residential tax rate will drop by $1.95 but the average tax bill for homeowners is expected to increase by $93.86 because of higher property valuations. 21.03
With the shift, a 10 percent increase from last year, the average residential tax bill is $3,561.60 with a $18.55 rate per $1,000 of assessed value. The commercial tax rate will be $25.65 per $1,000, a $2.49 decrease from FY2022.
"This wasn't easy to to go with the shift of 130 percent," said Vice Chair Cristine Hoyt, who thinks this split will help out residential properties. "It's still a lower tax rate for both residential and commercial."
Total new growth in town was $6,959,746, a 1.88 percent increase, while the average single-family home value is $192,000, a $26,000 increase from last year. The total town value was $652,770,504, a 14.3 percent increase.
Town Administrator Jay Green said this growth is evidence of the increased activity in town. The town's total levy amount is $12,876,875, a 2.7 percent increase, which Green said primarily comes from fixed costs.
"We know that there's been improvements in the town of Adams, we know that there's been growth, you can tangentially see it when new businesses open up, you can feel it. However, this is the first time that we have empirical data in front of us that actually shows new growth," he said. "... I think town staff has done well. These are good numbers that show our community is improving."
Selectman Joseph Nowak said he decided on the 130 percent shift to help homeowners in the current economy. He said commercial properties have more options than homeowners to deal with higher taxes.
"My vote, I think, will be to help the residential people because they have no recourse," he said.
Selectman Howard Rosenberg, the only dissenting vote to the 130 percent shift, said he would have done 125 percent instead. He noted the extra 5 percent has a much higher cost-impact on commercial bills when compared residential.
New to this year, bills will include taxes collected by the town on behalf of the Adams Fire District for fire protection and street lighting. The Prudential Committee adopted a single tax rate of $0.91 per $1,000 value to collect its levy of $502,354.
Green explained that aside from the method, collections from the Fire District will not drastically change for those living within its borders. The tax bills for those living in the district, he said, will contain a cover letter detailing the new collection process.
"It does not affect the town budget, it does not affect the amount of tax you pay the town of Adams," Green said. "The town of Adams is nothing more than a pass-through, a collector, for the Fire District.
The change resulted from a class-action lawsuit last year against the district. A Superior Court judge found the district did not have the authority to charge for anything other than water, according to an 1873 act by the Legislature.
Nowak wanted to clarify for residents that the issue with the district's collections has nothing to do with the current commissioners.
"What had happened with the Adams Prudential Committee and the Adams Fire District was well before any of the present members or anyone else were on the board. This is something that happened many years ago," he said.
