LYNN — The City is proposing to double the exemption on personal property taxes for small business owners as well as property taxes for disabled veterans.
Director of Assessing Christopher Gaeta was directed by Mayor Jared C. Nicholson to submit to the City Council a proposal that would increase the personal property tax exemption for small businesses from $5,000 to $10,000 annually.
“Increasing this exemption will provide financial relief to small business owners while not having a significant impact on the overall tax revenue received by the City,” Nicholson said.
Business owners are responsible for paying personal property taxes on items including computers, monitors, printers, machinery and other equipment. Under the current City policy, the first $5,000 worth of property is exempt from taxes.
Mass General Laws Chapter 59, Section 5 gives municipalities the option of exempting up to $10,000 in personal property taxes. There are 66 communities in the state who use the $10,000 figure as a local option, according to Gaeta.
The personal property tax exemption in Lynn was increased from $1,000 to $5,000 in 2021. Property valued in excess of that is taxed at the commercial rate, which is currently $19.86 per $1,000.
If the exemption is increased to $10,000 it would result in the City collecting $46,000 less in taxes, which is less than .5% of the current total personal property tax revenue of $9.5 million, Gaeta said. There will be savings realized from not issuing and collecting bills of a relatively small amount, Gaeta said.
Following guidelines included in the HERO Act that was approved by the state legislature in 2024, the City is proposing to increase the property tax exemption for veterans with a 100% service-connected disability from $1,000 to $2,000 per year. For veterans with at least a 10% service-connected disability, the exemption will increase from $400 to $800. There will be an annual cost-of-living increase applied to the increased exemptions.
Based on exemptions granted in FY25, the additional exemptions would cost the City approximately $107,000 next year, according to Gaeta.
“We take seriously our responsibility to not only honor our veterans, but also take care of those who have been injured during their service to the country,” Nicholson said. “The HERO Act provides us a vehicle to do that and we are pleased to take advantage of it.”
The City Council is expected to vote on these exemptions later this month. If approved, they would take effect starting with the 2026 fiscal year, July 1.
“As a veteran and a local elected official, I am happy to see our city taking advantage of the opportunity to award veterans this benefit,” City Councilor Nicole McLain said. “The HERO Act is groundbreaking legislation that will improve the quality of life for the veteran community. The City of Lynn is stepping up to honor those who have served, and I’m proud of that.”
“It’s not often that we get the opportunity to reduce taxes on residents, but in these two instances, it is the absolute right thing to do,” said City Council President Jay Walsh. “We owe much to our veterans and being able to increase this exemption is a small token of our appreciation. The same goes for our small businesses who are the backbones of this community.”
