LYNN — The City Council voted unanimously on Tuesday night to approve a new tax rate for fiscal year 2022 (FY22), which would increase the average single-family tax bill to $5,194 next year, a $312 increase from FY21.
This represents a 6.4-percent increase over last year’s tax bill for single-family homes. The tax rate for these homeowners for FY22 is $12.43 per $1,000 assessed value of properties.
Tax bills for owners in multi-family homes will increase by $414 next year to $7,541, which represents a 5.81-percent change over last year. Condominium owners will see an increase of $18, which will result in an average tax bill of $3,202, or a 0.56-percent change over FY21.
The levy limit would increase by 4.33 percent to $147.92 million, which is based on the state-limited 2.5-percent (Proposition 2 1/2) increase and new growth. The levy limit is the maximum amount of taxes that can be raised under Proposition 2 1/2.
As in past years, the City Council opted to adopt a 175-percent commercial, industrial and personal property (CIP) shift, which places more of the city’s tax burden on commercial properties and is the maximum shift allowed under state law. As a result of this shift, the residential tax burden for FY22 will decrease from 90.13 percent to 83 percent and the commercial, industrial and personal property share of the tax burden will be 17 percent.
Director of Assessing Christopher Gaeta explained to the council that the reason for the tax-bill increase for homes was the increase in property value of residential housing, and that it is outrunning the growth of commercial, industrial and personal properties in the city.
“We determined fair market sales for residential properties are outpacing the others,” Gaeta said to the City Council. “We are losing commercial property to residential property.”
The average single-family and multi-family housing property values rose by 11.53 percent to $417,900, and 10.91 percent to $606,700, respectively. The average condominium property values rose by 5.4 percent to $257,600. As more residential properties were built in Lynn, the total taxable value for these properties increased by 10.96 percent, from $8.87 million to $9.84 million in FY22.
Personal properties saw an increase of 12.51 percent in taxable value in FY22, growing from $266.9 million to $300.3 million. Industrial properties saw an increase in taxable value of 3.46 percent, growing from $171.5 million to $177.4 million.
Commercial properties were the only class to see a decrease in value, decreasing to $599.88 million from $607.94 million, a loss of 1.33 percent.
The total taxable assessed value for FY22 is $10.92 billion.
Ward 2 Councilor Richard Starbard asked if the average tax rate would increase over the year.
Gaeta explained that despite homeowners seeing an increased burden, the 175-percent CIP shift would allow the lowest possible tax burden for residential homeowners.
“The residential market did not slow down this year at all,” said Gaeta. “We are just trying to analyze the market and that is the result. An increase of taxes that amounts to $312 average for single-family homes.”
Starbard expressed concerns over the new tax levy, saying that Lynn citizens have been through a tough year already and that this levy would hurt them.
“Any increase on the tax on the city is like getting double rammed,” said Starbard. “I just think that with what’s been going on for the past few years, we should find a way to kill the tax levy quickly.”
Nevertheless, Starbard voted for the levy along with the rest of the City Council.
