Someone explain this to me re: property taxes

[countthestars]

Eek! Mine are over 17%

[donthasslethehoff]

I read this article a couple months back. As a general rule (at least I always thought) that the more commercial real estate a city has, the more relief homeowners would have as far as residential taxes. I really think, after reading this article that it's a bunch of bullshit. There has to be so many other factors playing in to how they determine taxes. I live in Marlborough. We have what I think is a TON of commercial real estate. HP, Fidelity (even though it's closed), Boston Sci, a bunch of businesses on rt 20 right before you get into Northborough, grocery stores galore. Our tax rate is 15%.

What do Wellesley and Newton have? I would assume we need to factor in very large companies and nothing in Newton or Wellesley is really coming to mind. (Sunlife? in Wells,) I think there are some biggish ones in Newton Highlands (upromise?)Overall though, I think it's safe to say that Sommerville and Marlborough have a lot more commercial real estate than places like Newton and Wellesley, yet they have lower taxes.

I have to be missing something here.

[elfinia7]

Woburn's seems to be the same from last year so I guess that's good. Though now I don't know why our escrow account was short money this year if property taxes haven't changed...ugh

[jenikate]

13.92 - ouch. I am really confused now. I have heard my relatives in Il complaining about tax rates in the 8 - 10% range and was feeling bad for them. Now I will be feeling bad for myself.

[liveintheville]

Jun 27, 2013 8:54:51 GMT -5 scm1011 said:

Wow, that's really surprising!

I'm hoping Somerville's resi rates will go down with all the new commercial properties being built in Assembly Row. I know that's what helps Cambridge keep their rates so low.

Yeah. Same here. Do landlords pay the same amount of residential tax, SCM? You live in your building though so maybe it's the same? 
And we don't pay anywhere near 13%. Our property taxes are 9-10K/year. That's less than 2% of purchase price. Weird.

[bryantpark]

But property values in newton and Wellesley are so high they are surely taking in lots and lots in tax rev.

[magdala]

Taxes + fees + grants + interest on investments is how a City pays for its expenses.

Newton and Wellsley have cache so a 1500 square foot house there is valued more than the same sized house in Waltham, Braintree or Medford.

Using round numbers If a house if valued at 100k in Watham and the same size-style-amenities house is valued at 200k in Newton, Waltham earns 13,490 in taxes while Newton earns 22,980 in taxes. The size of the towns are finite so rates changes is how most cities earn more to offset their expenses.

[pinkroses]

I can't help with the relational rates, but I think bryantpark is right and the rates are lower in Newton and Wellesley because the valuations are so much higher there.  The rate is calculated by dividing the amount of money needed by the total assessed value of all properties. 

However, I think the units are incorrect in that BBJ article.  Tax rates are $XX.XX / $1000 of assessed property value.  See www.newtonma.gov/gov/assessor/taxrate.asp  So MA is more in the 1% - 2% range.

[donthasslethehoff]

You're right pinkroses. It's not a percent in the article, it's a dollar unit out of every $1000 of the assessed value.

[mrsbro]

Jun 27, 2013 8:54:45 GMT -5 countthestars said:

Eek! Mine are over 17%

Yeesh mine too.

[rikki]

I remember seeing something along these lines when I lived in Waltham and being surprised! Hanover is 15.55%.

[LoveTrains]

You will all feel better when you see the tax rates for Providence.
$60 per $1000/assessed value car tax ( that means I pay $1000 on my 2006 subaru forester with 100k miles)
$19.25 per $1000 for owner occupied real estate
$33.75 per $1000 for non owner occupied real estate

[sporklemotion]

I can't speak for other towns, but Waltham has a pretty decent residential exemption if you live in the property (as opposed to renting it out), so that makes it less burdensome.  I'm not sure exactly what it is because my DH deals with the mortgage/escrow, but I think they don't tax you on 80k or so.  So it's only rental properties that pay that rate.
as others have said, too, the higher values in Newton and Weston mean they can get the same (or more) revenue with a lower rate.
i will also say that the roads in Newton and Weston are pretty crappy, especially in the winter, so maybe they are saving money there.  You can tell when you've crossed into Waltham or Watertown because there are fewer pot holes.