Would you prefer an 8% property tax rate cut or no change?
Would you rather your property tax rate went down 8% or stayed the same?
The answer may not be obvious. Look at Marblehead and Swampscott for FY2015:
Source: Assessors’ Offices
In both towns the average tax bill will increase 4%, but the average $ increase will be $309 in Marblehead and $352 in Swampscott.
Because Proposition 2 1/2 limits the increase in the amount that can be raised through property taxes, when assessed values increase, tax rates generally go down.
FY2015 tax rates are based on values as of January 1, 2014, so reflect prices in calendar year 2013. In 2013 the median sale price in Swampscott increased 11% vs a 5% increase in Marblehead.
In 2014, however, the median sale price in Swampscott was flat while it increased 10% in Marblehead.
Thus, other things being equal, the outlook for FY2016 is for the tax rate in Swampscott to tick up while Marblehead should see a decent reduction.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty
Affiliates LLC. Each Office Is Independently Owned and Operated
You can REGISTER to receive email alerts of new posts on the right hand side of the home page at www.OliverReports.com.
@OliverReports
Andrew: I want to thank you for your well thought-out blog regarding the local real estate market. Whenever I see a posting I know it will be information I will appreciate. Might I suggest an analysis of the “true tax rates” in the County. The actual rate for Swampscott is $ 19.01. Residential homeowners receive welfare from Commercial property owners.
thanks again
Bill
Thank you for your comments Bill. Swampscott is one of the 14 cities and towns in Essex County that charge a higher rate for commercial property. This does have the effect of lowering the rate for residential homeowners.
Interesting, educational blog, Andrew.
No predictions, just the facts.
Good job.
Jody