Tuesday, December 4, 2007

Taxes going down ... just not here

Article in the Globe claims the average household tax bill in Boston is going down this year thanks to a hot commercial property market. It demonstrates the value of a healthy commercial tax base.

http://www.boston.com/news/local/articles/2007/12/04/08_property_taxes_drop_in_hub/

The decreases are in sharp contrast to annual property tax increases in recent years. Between 2002 and 2007, the bill for the average single-family house skyrocketed 78 percent, or $1,351.

"I think it's great news. We've got a lot of people who are just getting killed by taxes," said Dr. Francisco Trilla, medical director at Atreva Health Care in Jamaica Plain, which serves many elderly city residents and young families. "You've really got to look at the most vulnerable populations and those are the people who are really going to benefit from this."

The good fortune of Boston homeowners is not being played out across the state, however. The vast majority of cities and towns that have set their tax rates so far are imposing increases to keep local services functioning.

State Department of Revenue records show that property tax bills for single-family homes are increasing in 48 of 54 cities and towns for which 2008 tax rates are set. Those bills are going up an average of $193.

The difference in Boston is that commercial development continues to boom. That is creating a deep well of new tax dollars that is coming to the aid of residential property owners. Even though residential property values are falling, city officials do not need to increase residential tax rates.

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