LYNN — The average single-family tax bill will increase by $123 next year.
With no discussion, the Lynn City Council voted unanimously on Tuesday night to set the lowest residential tax rate at $14.30 per $1,000 home assessment. No residents spoke during the tax classification hearing that was held before the vote.
Although the new rate is a decrease from last year’s residential rate of $15.15, the increase in tax bills is attributed to the 8.82 percent increase on the estimated assessed value of the average single-family home.
The average single-family homeowner will pay $4,656 on their tax bill, based on an average single-family assessed home value of $325,600.
Last year, the homeowner paid $4,533 on their tax bill, based on an average single-family assessed home value of $299,200.
Condo owners are slated to pay on average $2,859, a $58 increase over last year, while the average two- to three-family home will generate a tax bill of $6,339, a $423 increase.
Ward 1 City Councilor Wayne Lozzi said the council traditionally chooses to set the lowest residential tax rate.
The City Council opted to tax commercial property at the highest possible rate allowed under state law by choosing to adopt a 175 percent Commercial, Industrial and Personal Property (CIP) shift.
The shift reduces residential share of the tax burden from 88.92 percent to 80.61 percent, while commercial, industrial and personal property increases from 11.08 percent to 19.39 percent share.
Christopher Gaeta, director of assessing, said the city traditionally opts to set a 175 percent shift.
With the shift, the average commercial property owner will see their tax bill increase by $108. The average industrial tax bill will decrease by $78.
The commercial and industrial property rate was set at $27.61 per $1,000 assessment, which will result in an average commercial tax bill of $9,208 and an average industrial tax bill of $10,094. The rate last year was $29.45.
The median commercial assessed value increased by 7.96 percent over last year from $302,900 to $327,000, while the median industrial assessed value increased 5.85 percent from $345,400 to $365,600.
There are 723 commercial properties and 133 industrial properties in Lynn, according to Gaeta.
The level of spending needed in order to run city government for the fiscal year establishes the amount of money which must be raised by property taxes (the tax levy), which is subject to the limitations of Proposition 2½. The maximum amount of taxes that can be raised under Prop 2½ is the levy limit.
This year, or fiscal year 2019, the levy limit is $131.2 million, which represents a 3.96 percent, or more than $5 million increase over last year.
Gaeta said the city can only raise 2½ percent more in addition to new growth on top of what the levy limit was last year, which adds up to the new limit.
Tax bills are scheduled to go out next month.
