Swampscott board sets split tax rate; average hike $494

SWAMPSCOTT – Selectmen approved a split tax rate that will make residents see an average increase of $494 in their 2012 taxes, but town officials said that this year’s 8 percent increase in the tax rate was affected by several factors, most notably last year’s “minimal” increase that saved taxpayers approximately $250.”For what it’s worth, having saved last year – $250 last year – is relevant,” said Town Administrator Andrew Maylor at the Board of Selectmen’s Monday night meeting where they set the 2012 tax rate. “We focus on this year’s increase, although both (years’ increases) were painful, it should be looked at on a two-year period.”The Board of Assessors each November meets and recommends a tax rate for selectmen to set in order to pay for the year’s spending. Swampscott has a 175 percent/100 percent split tax rate for commercial and residential properties – the highest split rate allowed by state law – meaning that commercial properties bear a larger share of the taxes that must be raised by the town than residents. Board of Assessors member Neil Sheehan said this arrangement has existed for at least 15 years.At a public hearing at the selectmen’s meeting, Board of Assessors Chair Linda Paster recommended that commercial properties be taxed at a rate of $33.41 and residential properties are taxed at a rate of $17.99 per $1,000 of valuation. These rates represent an eight percent increase from the 2011 rates listed on the town website of $30.80 commercial and $16.60 residential, and officials said this would represent an increase of $494 for a $465,000 single-family home. Maylor said that this home would now pay $8,376 in property taxes.But several factors influenced this rate increase – both for better or for worse.Both commercial and residential property valuations fell by less than one-half of one percent, Maylor said, but this translated into the median valuation for a single-family home decreasing from $475,000 to $465,000.Most importantly, however, was a one-time state payment of $1.1 million to reduce last year’s tax levy, or the amount that the town had to raise from taxpayers. Maylor said that, several years ago through the state, the town essentially refinanced a low-interest loan for school construction. The move saved approximately $1 million, Maylor said, which the state required be applied to reducing the amount that had to be raised in taxes. This occurred last year, and the residential tax rate increased from $16.48 to $16.60 per $1,000 of valuation, an amount that Paster said was “minimal.” Maylor said that the average increase over the two years, however, remained in line with historical increases in the town’s tax levy.”It’s one big step rather than two little steps,” Selectman Chair Matthew Strauss said.Cyrus Moulton can be reached at [email protected].