Friday, December 17, 2010

Boston Residential Tax Bills Increase

The rate’s going up for Boston’s property taxes. For residential property, the increase is from $11.88 per thousand dollars of value to $12.79. For commercial property, the increase is from $29.38 to $31.04.

The average tax bill for residential property will increase by 7.5%, from the previous year’s $2,935, to $3,155. As in past years, there will be an exemption for owner-occupants of residential property. This year’s exemption will be $1,594.85.

The administration of Mayor Menino say it’s raising total property tax revenue by the maximum amount allowed by Proposition 2½. Also affecting the rate is a slight decrease in the city’s overall property values.

The tax bills coming out will be calculated on property values as of January 1, 2010. The date precedes changes in market values caused by the tax break for first-time home-buyers, and by the fall-off in sales when the break expired.

In recent years, residential values in some parts of Boston have held firm or even started going back up. But, in other parts of the city, values are still falling. As in past years, city officials note the average residential tax bill in Boston is lower than the same bills in many other communities. And they say the bill for FY 2011 is 30% below the average residential bill for all of Massachusetts in FY 2010.