LYNNFIELD — A penny saved may be a penny earned, but in the case of the average Lynnfield taxpayer, that one penny in the form of a new residential tax classification will set you back about $200 in real estate taxes for fiscal year 2020.
On May 20, the Board of Selectmen approved an increase of one cent in the town’s residential real estate tax rate with a new rate of $13.92 per $1,000 of valuation.
The commercial, industrial and personal property (CIP) rate increased from $17.95 per thousand of valuation in fiscal year 2019 to $18.86 in 2020.
Both rates are subject to the approval of the Massachusetts Department of Revenue.
“It’s about $200 and change on the average house in town,” said Interim Assessing Manager Richard Simmons, who added that the average single-family home value in Lynnfield is $650,500 in fiscal year 2020 and that the average tax bill for fiscal year 2020 based on the average valuation will be $9,055. The average condominium value for fiscal year 2020 is $635,300 and the average tax bill will be $8,843.
Simmons broke down the percentages of property in each of the five classes. Slightly less than 86 percent of the total valuation in Lynnfield is residential, while 12.35 percent is commercial and 0.64 percent is industrial and 1.22 percent is personal property.
“Shifting the levy moves the tax burden to run the town from residential and open space (of which Lynnfield has none) to commercial, industrial and personal property (CIP),” said Simmons.
Simmons said the rate shift history since 2012 shows it has gone up consistently, from 1.08 in 2012 to 1.240 in 2019.
“Before that, it tends to go up the market,” Simmons said explaining that “with strong residential markets that appreciate quickly, it shifts the burden to residential and what this shift does is negate that shift toward residential.”
Simmons broke down a comparison of Lynnfield’s tax rates with neighboring communities. Wilmington has the highest CIP rate at 30.94, while Wakefield is close behind at 25.16. North Reading has the highest residential rate at 15.58.
He said if Lynnfield adopted a single rate for both residential and CIP, the rate would be 14.62
“I don’t think we should be shifting the burden to the homeowners,” said Selectmen Chairman Phil Crawford. “As far as the tax shift goes, I believe we are limited, and that 1.3 percent is the maximum per our agreement with MarketStreet. I would therefore recommend 1.29 percent. Other than that, that would end up shifting more of the burden to the homeowners.”
Assessor Richard O’Neil said the 1.29 shift is fair to both residents and commercial/industrial businesses and also thanked Simmons for taking on the role of interim manager.
The meeting also addressed residential and small business exemptions as well as open space discounts for property taxes. Simmons said that while the state permits communities to adopt them, Lynnfield historically has not supported them.
“I do not have any desire to give the exemption or discount,” said Crawford. “We don’t have to vote to do so unless we want to do it.”
