Town of Milton. Fiscal Year 2017 Tax Classification Hearing. Prepared for the Board of Selectmen. Kathleen M. Conlon, Chair. David T.

Size: px

Start display at page:

Download "Town of Milton. Fiscal Year 2017 Tax Classification Hearing. Prepared for the Board of Selectmen. Kathleen M. Conlon, Chair. David T."

Penelope Stokes
5 years ago
Views:

1 Town of Milton Fiscal Year 2017 Tax Classification Hearing Prepared for the Board of Selectmen Kathleen M. Conlon, Chair David T. Burnes J. Thomas Hurley Prepared by the Board of Assessors Brian M. Cronin, Chair James A. Henderson William E. Bennett Robert L. Bushway, Chief Appraiser November 15, 2016

BOARD OF ASSESSORS Brian M. Cronin, Chair James A. Henderson, Vice Chair William E. Bennett TOWN OF MILTON 525 Canton Avenue Milton, Ma. 02186 Tel. 617-898-4863 Fax.

2 BOARD OF ASSESSORS Brian M. Cronin, Chair James A. Henderson, Vice Chair William E. Bennett TOWN OF MILTON 525 Canton Avenue Milton, Ma Tel Fax Robert L. Bushway Chief Appraiser To: Board of Selectmen November 15, 2016 From: Board of Assessors Re: Taxation and Classification of Property According to Use Chapter 40 Section 56 of the Massachusetts General Laws requires the Board of Selectmen to make policy decisions regarding the property tax burden to be borne by each class of property; Residential, Open Space, Commercial, Industrial and Personal. The Massachusetts Department of Revenue has reviewed and approved the valuation of all real and personal property for fiscal year The changes to this year s assessed values are based on property sales in calendar 2015 and new growth. The result is that the average single family home has increased in value from $604,044 to $625,017, a 3.5% increase. The total taxable value of the town has grown by 3.6%. The estimated fiscal year 2017 maximum allowable tax levy of $74,020,945 represents a 4% increase over the fiscal year 2016 tax levy. Enclosed is information that will serve as a guideline for making these decisions. Respectfully submitted, Milton Board of Assessors

3 FY16 Fiscal Year 2017 Tax Classification-Options for Tax Rate CIP SHIFT 1.57 Current Fiscal Year 2016 Tax Rates-Average Values RES FACTOR PROPERTY TYPE TAX RATE AVG TAX AVG FY16 SF ASSMT AVG FY16 COMM ASSMT Single Family $13.50 $8,155 $604,044 Commercial $21.70 $16,108 $742,286 FY2017 Average Single Family Value $625, % Inc. FY2017 Average Commercial Value $777, % inc. (Excluding 2 large increases due to new growth) Option 1 CIP SHIFT 1.57 RES. FACTOR Options for Fiscal Year 2017* PROPERTY TYPE EST TAX RATE EST AVG TAX TAX DIFFERENCE FROM FY16 % CHANGE FROM FY16 Single Family $13.55 $8,469 $ % Commercial $21.80 $16,949 $ % Single Family $13.58 $8,488 $ % Commercial $21.10 $16,405 $ % Single Family $13.57 $8,481 $ % Commercial $21.38 $16,623 $ % Single Family $13.57 $8,481 $ % Commercial $21.52 $16,732 $ % * All figures are estimated, subject to change upon tax rate approval C:\Users\rbushway\Documents\Tax Classification\FY17\Options Table for Hearing -without 2 growth properties

4 Decisions to be made under Classification: 1. RESIDENTIAL FACTOR FOR FY2017 REQUIRED TO CHOOSE A policy decision is needed to determine the amount of the tax levy which the Residential, Open Space, Commercial, Industrial and Personal Property classes will bear. A Minimum Residential Factor (MRF) may be adopted, thereby reducing the residential tax rate by a specific percentage and increasing the tax rate for Commercial, Industrial and Personal Property to as much as 175% of what they would pay at the 100% valuation. 2. RESIDENTIAL EXEMPTION OPTIONAL (YES OR NO) A policy decision is needed concerning the allowance of up to a 20% residential exemption. The maximum exemption which may be applied to each principal residence is 20% of the average assessed value of the residential class. Adopting a residential exemption increases the residential tax rate. The amount of the tax levy paid by the class remains the same, but because of the exempted valuation, it is distributed over less assessed value. Milton has not adopted this previously. This option is typically adopted in rental areas and summer home areas. Previously it has been chosen by 13 out of 351 communities, such as Boston, Cambridge, Tisbury, etc. 3. SMALL COMMERCIAL EXEMPTION OPTIONAL (YES OR NO) A policy decision is needed regarding the small commercial exemption. A small commercial business exemption is an option that can reduce commercial valuation by up to 10%. However, adopting a small commercial exemption increases the commercial and industrial tax rates. Milton has not adopted this previously. This has been previously adopted by 10 out of 351 communities. RECOMMENDATIONS FROM THE BOARD OF ASSESSORS The Board of Assessors recommends the following regarding the FY17 tax burden to be borne by each class of property: Vote: That the Town of Milton adopt a minimum residential factor of , NOT to adopt a residential exemption and NOT to adopt a small commercial exemption.

5 MASSACHUSETTS DEPARTMENT OF REVENUE DIVISION OF LOCAL SERVICES BUREAU OF ACCOUNTS Levy Limit Fiscal Year 2017 Milton City / Town / District FOR BUDGET PLANNING PURPOSES I. TO CALCULATE THE FY 2016 LEVY LIMIT A. FY 2015 Levy Limit 66,249,931 A1. ADD Amended FY 2015 Growth 0 B. ADD (IA + IA1)*2.5% 1,656,248 C. ADD FY 2016 New Growth 736,489 C1. ADD FY 2016 New Growth Adjustment 0 D. ADD FY 2016 Override 0 E. FY 2016 Subtotal 68,642,668 F. FY 2016 Levy Ceiling 128,714,104 I. 68,642,668 FY 2016 Levy Limit II. TO CALCULATE THE FY 2017 LEVY LIMIT A. FY 2016 Levy Limit from I 68,642,668 A1. ADD Amended FY 2016 Growth 0 B. ADD (IIA + IIA1)*2.5% 1,716,067 C. ADD FY 2017 New Growth 684,846 C1. ADD FY 2017 New Growth Adjustment 0 D. ADD FY 2017 Override 0 E. ADD FY 2017 Subtotal 71,043,581 F. FY 2017 Levy Ceiling 133,289,068 II. 71,043,581 FY 2017 Levy Limit III. TO CALCULATE THE FY 2017 MAXIMUM ALLOWABLE LEVY A. FY 2017 Levy Limit from II. 71,043,581 B. FY 2017 Debt Exclusion(s) 2,477,364 C. FY 2017 Capital Expenditure Exclusion(s) 500,000 D. FY 2017 Stabilization Fund Override 0 E. FY 2017 Other Adjustment 0 F. FY 2017 Water/Sewer 0 G. FY 2017 Maximum Allowable Levy 74,020,945 No signatures to display. Signatures NOTE : The information is preliminary and is subject to change. printed on 11/7/ :23:21 AM page 1 of 1

6 $650,000 Average Single Family Value FY12 - FY17 $630,000 $625,017 $610,000 $590,000 $604,044 $570,000 $565,278 $550,000 $530,000 $510,000 $510,170 $508,262 $516,317 $490,000 $470,000 $450,

7 Average SF Tax Bill % Increase by Fiscal Year 4.5% 4.0% 4.0% 3.5% 3.6% 3.5% 3.0% 2.5% 2.6% 2.0% 1.5% 2.0% 1.8% 1.0% 0.5% 0.0%

8 12,000 Area Communities FY2016 Average Single Family Tax Bills 10,000 10,148 10,312 8,000 8,155 6,000 6,285 6,509 6,952 4,339 4,443 4,530 4,000 2,000 0 Braintree Norwood Randolph Canton Dedham Walpole Milton Sharon Westwood

LOCAL TAX EXEMPTIONS FOR VETERANS (Supersedes Bulletin B)

Massachusetts Department of Revenue Division of Local Services Alan LeBovidge, Commissioner Gerard D. Perry, Deputy Commissioner Bulletin 2006-15B LOCAL TAX EXEMPTIONS FOR VETERANS (Supersedes Bulletin