Brass Tax: some residents will see a decrease in property taxes this year

November 21, 2017
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The Chelsea City Council unanimously set the property tax rates for residential and commercial properties on Monday night, instituting an increased 27.5 percent owner-occupant exemption that will lead to a reduction in taxes for most single-family homeowners.

“(These tax rates) will result in a reduction in the average tax bill for owner-occupied single family homes, and a modest tax increase to other owner-occupied parcels,” wrote City Manager Tom Ambrosino.

The new residential tax rate is $14.17 per $1,000 of value, and the commercial tax rate is $29.75 per $1,000 of value. Both tax rates are still pending state Department of Revenue approvals – which could result in minor adjustments, if any adjustments.

With that, the average owner-occupied single family home will see a decrease in their bill from $2,723 last year to $2,654 this year. There are 843 single-family homes in Chelsea.

Condos will see an increase from $1,893 to $2,100, while two-families will see a very small increase compared to previous years – going from $3,657 to $3,781 on the average bill.

Three-family homes will also see a much smaller increase than in previous years, going up 3.8 percent over last year ($4,927 to $5,114).

The largest tax bill increase came on the condo properties, which will rise 11 percent over last year. Condos also are the most prevalent properties in the city, with 1,839 properties units.

The Council does have the option to increase the owner-occupant exemption to 35 percent, but instead continued to keep with the incremental increase towards that higher number. Last year, after first having the ability to go from 20 percent to 35 percent, the Council chose the conservative approach, ratifying a 25 percent exemption.

This year, they chose the 27.5 percent exemption.

“By selecting the 27.5 percent residential exemption amount, the City Council will have the opportunity to spread the benefit of the 35 percent exemption limit over several additional fiscal years,” Ambrosino wrote.

The Council did not debate the matter much, but voted 11-0 the tax rates and other related measures.


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