No one wants to pay higher taxes, but in the largest city in western Massachusetts, stable tax rates coupled with rising property values are seen as good news.
The tax rate for residential property in the city of Springfield is going up 2 cents, resulting in an increase of just over $100 on the annual tax bill for the average single family home.
City Councilors voted 9-2 to set the new rates at $19.68 for each $1,000 of assessed valuation for residential property and at $39.28 on each $1,000 of valuation for commercial and industrial property.
This marks the second year in a row the tax bill for the average single family home is going up. Last year’s increase was $142.
Because the city is committed to collect $198 million in property taxes to balance the budget councilors adopted last June, lowering the tax rate for homeowners would have required a greater increase in the commercial rate. There was concern about how that would affect small businesses in the city, according to City Councilor Adam Gomez.
"Give a little break to some of those mom and pops that are really trying to grow and make sure they can stay viable," explained Gomez.
Faced with higher tax bills, homeowners can take some comfort in knowing their home’s worth has most likely increased, according to Richard Allen, Chairman of the Board of Assessors.
"Property values have increased," Allen said. "We've had a strong residential market, commercial growth and our total taxable value has increased."
In response to the improved real estate market in Springfield, assessed valuations have increased by over $275 million.
" We are up about 4 percent on the residential side. Single family, two family, three family homes and residential condominiums it is all pretty uniform," said Allen.
The average value of single family homes in Springfield has risen to $147,300, an increase of almost 16 percent since 2012.
" We are almost back to the point where the average single family value, which this year is $147,000, is almost back to the $154,000 that we were prior to that crash in 2008-09," said Allen.
He said during the Great Recession the average single family home in Springfield lost $30,000 in value.
The quarterly tax bills for fiscal 2018 will for the first time include the 1.5 percent surcharge to fund the Community Preservation Act in Springfield, which voters approved last year. The first $100,000 in property valuation is excluded from the surcharge.
The city’s assessors estimate the surcharge will raise $705,000.
