SAUGUS — The Board of Selectmen conducted a Public Hearing to “determine the percentage of local tax levy FY 2025 to be borne by each class of taxable property within the Town of Saugus.”
The Board of Assessors spoke at the meeting to give an overview of how it came to the new tax rate the Selectmen would be voting on.
“This shows the new growth in 2025. It breaks it down between residential, commercial, industrial, and personal property,” Board of Assessors Chair David Ricciardelli said.
Ricciardelli explained personal property mainly consists of utilities that could be connected to National Grid, a gas pipeline, or telecom companies.
“If they did some capital improvements, that would go into the personal property number. The Department of Revenue also sets some of those rates. We have an appraiser that specializes in this, and it’s appraised every year, which is how we get this number,” Ricciardelli said.
Selectmen Chair Debra Panetta said, “The Board of Selectmen aren’t voting on a tax rate. Our board is voting to choose the shift of the tax burden from residential class to commercial, industrial, and personal property taxes as long as the shift does not exceed the minimum residential factor.”
The tax burden cannot be shifted off of residential properties and onto commercial, industrial and personal properties by more than 175%. Historically, Saugus has chosen the maximum allowable shift factor to afford residential taxpayers the lowest share of the tax burden, Panetta said.
The Board of Selectmen voted unanimously to shift to the maximum 175% off of residential properties and to adopt the minimum residential factor (MRF) of 85.11%. The MRF is the minimum percentage of the town’s total property tax levy to be paid by residential properties.
