The City Council voted in favor of adopting a residential factor of .847613 and the maximum allowable tax-burden shift of 175% to commercial, industrial, and personal properties at the fiscal year 2025 tax-classification hearing on Dec. 7.
The motion passed 9-1, with Councilor-at-Large Anne Manning-Martin casting the sole vote against it.
Mayor Ted Bettencourt recommended that the council vote in favor of a CIP tax increase at the beginning of the meeting.
“I am again, as in years past, asking you to shift some of the tax burden away from residential homeowners, and onto our commercial and industrial base,” Bettencourt said.
He recommended a lower average-residential-tax increase of $286, compared to an earlier projection of $309 in June. He noted how the $286 would be much lower than the average-tax increase of $428 in Essex County, and presented statistics supporting an increase of residential values.
“Single-family homes are up 10.2%, condominiums are up 8.4%, and two and three families are up 15%,” Bettencourt said. “We still boast one of the lowest residential tax bills of any city or town in Essex County.”
City Auditor Mike Gingras followed with a presentation that recapped the changes in property values from FY23 and 24. He concluded by recommending a residential tax rate of $9.12 per $1,000 of property value and a commercial tax rate of $18.83, which the council passed later in the meeting.
The council also voted unanimously against the implementation of a residential exemption, small commercial exemption, and open-space discount.
