During last Monday’s Board of Selectman’s meeting, town assessor, Rich Scanlon recommended that the Board of Selectmen set the tax rates for fiscal year 2010 without change from that set for 2009. Businesses will continue to be taxed at the maximum allowed by law to avoid Commonwealth interference in local tax policy. That rate will be set at $28.47 per $1,000.00, or the maximum of 175% more than the tax on residential property.

Residential property tax rates will be $12.53 per $1,000.00, creating an average rise in residential property taxes by $111.00. The new commercial rates will increase taxes on existing businesses by an average of $507.00 These new valuations increase residential taxes by 8.5% and commercial valuations by 8.6%. Some of you may be asking how the proposition 2 ½ rate limit can be exceeded. The short answer is, simply; because it can. The more accurate answer can be found by going here.

For some, the primer may seem a bit daunting, but it’s actually quite simple to understand with a bit of patience. If after reading it, you still have some questions as to how proposition 2 ½ structures tax rates, there are telephone numbers for personal contact and fax questions listed that you can call for clarification. Additionally, there is the web address for the Department of Local Services branch of the Department of Revenue.

For instance you may hear descriptions that claim that the only other additions to the levy limit (as opposed to the levy ceiling) are new construction and overrides. While this is technically correct, it is not completely correct, and therefore, somewhat inaccurate. It is more accurate to use the term “new growth” as opposed to “new construction” for several reasons. One is that new growth properly defines an increase in the tax base created by an empty building suddenly being used again, with or without new construction – its use as a business alone will affect the value of the property and therefore the amount of new growth.

Override is also, by itself, an ambiguous term in that there are several types of overrides and all overrides are not equal in their impact on revenues as is clearly demonstrated in the PDF file found by clicking on the “here” link above. Try comparing what you find in the PDF file with this article from the Lowell Sun and you will find that the issue is not all that complicated, but is in fact, an issue easily understood.