Belmont’s Property Tax Rate Drops But Average Yearly Bill Will Jump $900

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Photo: Belmont property owners will see an increase in next fiscal year’s tax bill

Property owners would see Belmont’s property tax rate decrease as the Board of Assessors presented a series of recommendations at a public meeting before the Belmont Select Board at its Dec. 5 meeting.

The Assessors propose a property tax rate for fiscal year 2023 of $11.25 per $1,000 of assessed value, a drop from the current rate of $11.56 per $1,000, according to Robert Reardon, long-time chair of the Board of Assessors. The Select Board voted unanimously to adopt the new rate.

But due to a hot residential real estate market that resulted in escalating home values, the average property tax bill for households will increase. According to the Assessors, the average value of a single family house in Belmont rose to $1,463,000, up a robust $116,800 from $1,346,300 in fiscal year 2022. The average value of a single family house statewide is $525,788.

With the Proposition 2 1/2 increase of the tax levy and the impact on the tax rate of nine debt exclusions – which includes the Senior Center, the Wellington Elementary School and three segments of the new Middle and High School – which makes up 12 percent of the total tax rate, the expected property tax increase on an average house will be approximately $900 for this coming fiscal year, according to Reardon. Without that additional debt, the tax rate would be $9.90 per $1,000.

In addition, the Assessors are recommending the town not create a split tax classification where commercial property would be taxed at a higher rate than residential homes., Reardon said since commercial real estate makes up just five percent of Belmont’s property base, a split rate would not raise any more in taxes while businesses would be hit with a significant rate increase while homeowners would see a very small reduction. The Select Board supported the recommendation.

As Belmont’s ‘22 Property Tax Rate Rises By Pennies, Higher Assessments Will See Average Bill Increase

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Photo: You’ll be paying more in taxes next year on your Belmont castle.

The Belmont Board of Assessors announced an increase of a couple of pennies to the fiscal year 2022 property tax rate from last fiscal year’s charge during its annual property classification tax rate presentation before the Select Board on Monday morning, Nov. 29.

“The Board of Assessors propose a tax rate of $11.56 per $1,000 of assessed value. That’s up two cents from last year,” said Charles Laverty III, the board’s vice chair stepping in Chair Robert Reardon who due to a scheduling conflict missed making the board’s presentation for the first time in nearly three decades.

Dan Dargon, the town’s assessing administrator who made the presentation, said the town’s total assessment has reached $9.001 billion with a total tax levy of $111.7 million, which includes $12.3 million in current total debt exclusions (for everything from the Beech Street Center to the new Middle and High school) resulting in the two cent increase to $11.56. Dargon noted that without the debt exclusions, Belmont’s tax rate would be $10.29 per $1,000.

New growth in the past year was higher than anticipated at $1,034,000 vs the estimated $840,000 as the Bradford apartment complex in Cushing Square was completed. [The town’s 2.5 percent increase and new growth are both added to the prior year’s levy limit to reach the current year’s levy limit.] But Dargon said it doesn’t appear the town will benefit from new large commercial growth for at least the next two years.

While it would appear the minimal rate increase would be a little bit of good news to rate payers, due to a modest four percent increase in appraised values over all classes of real estate – multi families and condominiums saw “stronger” jumps in value – homeowners will see their annual tax bill climb starting in January as the town increased the tax levy by the allowable 2.5 percent from $96 million to $99 million.

For example, on the average home in Belmont now valued at an eye-opening $1,346,700 (up from $1,326,300 last year), property owners will be handing over an additional $262 in fiscal 2022 with the total annual real estate bill now exceeding $15,000.

Last year, the average residential bill increased $706 when the rate rose by 56 cents per $1,000.

Dargon told the Select Board around 14 to 15 percent of all homes in town are inspected annually by his department for updating their value but all properties are revalued each year.

While the Assessors vote to approve the rate, the Select Board decides on two related issues: whether to implement a singular “split” rate for commercial and residential properties and to approve a residential exemption that would reduce the rate on owner-occupied properties at the expense of non-occupied residences.

As in past years, the assessors recommended and the selectmen agreed to a single tax classification and no real estate exemptions. With barely five percent of total property inventory commercial, Dargon said Belmont does not have anywhere near the amount of commercial and industrial space (Reardon has stated in multiple presentations that commercial property must at a minimum be at 30 percent to make a difference for residential rate payers) to creating separate tax rates for residential and commercial properties.

When asked by resident and Town Meeting Member (Pct. 3) Joseph Bernard asked if there was empirical evidence that municipalities which set a higher commercial tax rate reduced development or commercial activity, Dargon discussed his own experience as chief assessor for Framingham saying he witnessed the suppression of commercial activity as the then town had a high rate for business properties.

“In most lease agreements, taxes are passed on to the tenants. In the case where I was, they would often go to Natick which has a single rate,” he said.

As for residential exemptions, the administrative costs to run such a program would be prohibitive for a revenue neutral imitative. And as with the split rate, the majority of taxpayers would see little in reductions or increases in their tax bill, according to Dargon.

Because many homes in Belmont fall around the average price, a 10 percent exemption “doesn’t really benefit many people,” Dargon said. Adam Dash, the Select Board chair, noted that residential exemptions are popular in more densely populated urban municipalities such as Boston, Somerville and Cambridge with a very high percentage of absentee landlords.

Belmont’s FY’22 Property Tax Rate Jumps To $11.55 per $1,000 Driven By New School Borrowing

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Photo: The second $100 million borrowing for the new Middle and High School has driven the property tax rate higher.

Belmont taxpayers will see their property tax rate increase by four bits and a nickel as the Board of Assessors recommended a rate for fiscal year 2022 during its annual presentation before the Select Board on Thursday morning, Dec. 10.

“This [coming fiscal] year the tax rate will be going up 55 cents … from $11 to $11.55,” Reardon told the board. According to the assessors, the impact on a residential property valued at $1,285,000 – what the average single family house in Belmont is worth – will be $706. The annual tax bill for that average house comes out to $14,842.

While property values calculated by the assessors cooled off from the past years of double digit increases – this year single families are up 3 percent (as opposed to 18 percent last year), condos 5 percent, two and three families increased by 4 percent and commercial property was flat – the biggest impact on property taxes is the second phase of borrowing for the Middle and High School project. The new $100 million borrowing added 56 cents to the tax bill, said Reardon.

As in past years, the assessors recommended and the selectmen agreed to a single tax classification and no real estate exemptions. Reardon said Belmont does not have anywhere near the amount of commercial and industrial space (at must be least a minimum of 30 percent, said Reardon) to creating separate tax rates for residential and commercial properties. Belmont’s commercial base is approximately four percent of the total real estate inventory.

As for exemptions, the administrative costs to run such a program would be prohibitive for a revenue neutral imitative. And as with the split rate, the majority of taxpayers would see little in reductions or increases in their tax bill.

The Board of Assessors will officially set the fiscal year ‘22 property tax rate on Friday, Dec. 11.

Next Year’s Property Tax Rate Falls But Bill Continue Skyward As ‘Average’ Belmont Home Nears $1.1 Million

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Photo: An “average” Belmont home that recently sold for $1.1 million (and it’s a ranch!)

Belmont Board of Selectmen Chair Adam Dash said that next fiscal year’s property tax rate approved by the board Thursday morning, Dec. 13 isn’t that onerous compared to charges imposed in other Massachusetts city and towns.

“It’s our housing values that are high,” said Dash, focusing on the annual dichotomy of where lower tax rates result in raising taxes for Belmont’s property owners after the Belmont Board of Assessors presented its analysis of Belmont real estate valuation during its annual tax classification hearing before the Selectmen.

Robert Reardon, long-time chair of the Board of Assessors, announced that Belmont’s fiscal ’19 property tax rate – which begins on July 1, 2019 – will be set at $11.67 per $1,000 assessed value, a reduction of nearly half-a-buck from the fiscal ’18 rate of $12.15.

But the average quarterly bill isn’t shrinking with the new tax rate as the total assessed value of property in Belmont shot up to $7.947 billion from $7.497 billion in fiscal ’18 as home buyers continue to clamor into the “Town of Homes.” 

The healthy increase in Belmont property values also pushed up the average residential home value to $1,090,000, a jump of a little more than 8 percent or $86,000 in 12 months. “Incredible,” said Selectman and lifelong Belmont resident Mark Paolillo upon hearing what the new “average” has become.

With home prices increasing at a steady clip, the annual tax bill in fiscal ’19 on an average assessed valued property ($1,090,000 x $11.67) will be $12,720.30, an increase of $525 from the $12,195.56  in fiscal ’18.

And the town is squeezing every last drop of taxes from the levy; by taking in $89.25 million, it is leaving only $4,003.08 of excess capacity “on the table,” said Reardon. 

When Selectman Tom Caputo asked how the new 7-12 school building on the site of Belmont High School will impact tax assessments, Town Treasurer Floyd Carman said the nearly $215 million debt exclusion will be phased in over three years beginning in fiscal 2020. The town is expected to borrow between $85 to $90 million in long-term borrowing in the first two years with taxes on an average home increasing by $680 each year. The final year will be short-term bonds in the $25 million to $30 million range.

“Think $1,800 plus” total increase on the average property in taxes by the start of fiscal 2022, “assuming we keep our [triple A] bond rating,” said Carman.

As in past years, the assessors’ recommended, and the selectmen agreed to a single tax classification and no real estate exemptions. Reardon – who is director of Cambridge’s Assessing Department – said Belmont does not have anywhere near the amount of commercial and industrial space (at must be least a minimum of 20 percent, said Reardon) to creating separate tax rates for residential and commercial properties. Belmont’s commercial base is 3.9 percent of the total real estate.

“Every year, the layperson ask us why we don’t increase the commercial rate, and the reason is that is such a small, small impact,” said Reardon. If Belmont increased commercial rates to the maximum limit under the law, those tax bills would jump on average by $6,350 while residential taxes would fall to $381, placing an unfair burden on commercial owners and their renters “and make Belmont a less desirable town.” 

“People always assume there’s more money if you go with the split rate when it really is just shifting the cost to the commercial side,” Reardon said.

Belmont Property Tax Rate Falls but the Average Bill Continues to Rise

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The good news: The Belmont Board of Selectmen has cut the property tax rate in fiscal 2015 by nearly five percent.

The bad news: Your residential tax bill will in all likelihood be higher in the coming fiscal year.

That’s the analysis from the Board of Assessors which presented its recommendations to the Selectmen on Monday, Dec. 1.

The board’s recommendation, which the Selectmen approved unanimously, was that the fiscal 2015 tax rate to be set at $12.90 per $1,000 of the assessed value of the property. That is a 60 cent cut from last fiscal year’s rate of $13.50.

While normally a cut in a rate would be good news, it comes as the assessed value of Belmont properties increased by just under $500 million to $5.9 billion. That increase can be seen in the value of an “average,” or median, Belmont house which exploded to $847,900 from $782,600 last year.

For the “average” Belmont home, taxes next fiscal year will be $10,938, up $373 from last year’s average of $10,565.

“The decrease in the rate is a result of the increase in real property values with an increase in the tax levy capacity,” said Assessors Chairman Robert Reardon, who was accompanied to the meeting by his colleagues, Martin Millane, Jr. and Charles Laverty III.

For more information on just what is and how the tax levy is calculated, the Massachusetts Department of Revenue has a handy primer explaining the concept.

With the vote, Belmont will see an increase in property taxes in the coming fiscal year of $2.3 million (compared to $1.9 million last year) from a total amount collected of $76.6 million. That amount is the sum of the annual 2.5 percent increase allowed under state law and $654,000 in “new growth” which includes properties that have increased in assessed valuation since the prior year because of development or other changes and any new subdivisions and condo conversions.

As with past years, the assessors recommended and the selectmen agreed to a single tax classification for all properties and no real estate exemptions.

Reardon said Belmont does not have anywhere near the amount of commercial and industrial space needed to support separating the classes with their own tax rate.

“We are not raising more money by having a commercial rate, we are only shifting it” onto businesses while the savings for residential rate payers would be “negotiable,” said Reardon.

Under a senario where the commercial rate would be maximized by a factor of 1.5, residential tax payers would see their rate drop by 39 cents to $12.51/$1,000 of assessed value for an “average” savings of $330 per year while commercial rates would increase to $19.35/$1,000 to see an average increase of nearly $5,500 from last year.

“Every board strives to increase our commercial base … we really want to incentive them and you don’t do that by increasing the tax rate,” said Selectmen Chair Andy Rojas.

New Belmont Property Tax Rate to be Released Monday

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“Things as certain as Death and Taxes, can be more firmly believed,” wrote Daniel Defoe in “The Political History of the Devil.” 

Tonight, Monday, Dec. 1, the Belmont Board of Selectmen will be take on the certainty of taxes as it receives and will vote on how much residents and landowners will pay in property taxes.

The Board of Assessors will make its annual visit to the Selectmen’s Room to announce their recommendations on what is officially known as the “annual property classification/tax rate for fiscal year 2015.

A year ago this month, Belmont’s property tax rate was set at $13.50 per $1,000 of assessed property value. That was a 17 cent increase from the fiscal 2013 rate of $13.33/$1,000.

Last year’s tax rate broke a barrier in which half of Belmont property owners would pay $10,000 or more as the median Belmont residential property of $782,600 would result in a bill of $10,565.10.