THE SAUGUS ADVOCATE – Friday, December 1, 2017
Page 7
New tax rates set
On average, homeowners and businesses will pay less tax under FY 2018 plan approved by selectmen By Mark E. Vogler
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he owner of an average single-family home in Saugus – valued at $386,300 – will pay $16 less in taxes. The tax bill for an average commercial property – valued at $1,127,500 – will decrease by $7,105. Those scenarios will take effect as a result of the new tax rates for the 2018 fiscal year, which were approved unanimously Tuesday night by the Board of Selectmen. Once again, selectmen followed their past practice of recent years by adopting a plan calculating the lowest possible residential factor – a plan that would tax Commercial, Industrial and Personal (CIP) property at a maximum share of the tax levy for the 2018 fiscal year at 175 percent. Overall, residential tax rates in Saugus will decrease from $12.05 for $1,000 of assessed valuation to $11.59 – a 3.82 percent decrease. The value of the average single-family home will increase from $372,900 to $386,300. The current average residential tax bill of $4,493 will increase to a projected $4,477, according to the report compiled by the Board of Assessors, assisted by Deputy Assessor Ronald J. Keohan, Jr. and Assistant Deputy Assessor Tamara Sands. Overall, CIP tax rates in Saugus will decrease from $25.78 for $1,000 of assessed valuation to $24.60 – a 4.58 percent decrease. The average commercial property value of $1,351,500 will decrease to $1,127,500. The current average commercial property tax bill of $34,842 is projected to decrease to $27,737, according to the Board of Assessors report. New School costs not included “Saugus’ tax rate does remain among the lowest of surrounding communities,” Board of Assessors Chair Michael Serino said, citing highlights from a re-
port he presented to selectmen. Serino noted that two-thirds of the town’s residential property has been revalued and that the remaining third would be done next year. All of the commercial property has been revalued. This year’s taxes do not include any finance costs for the new Saugus Middle/High School project approved by voters earlier in the year, according to Serino. He said taxpayers would begin to see that when selectmen set the tax rates for the 2019 fiscal year. “Whatever we borrow moving forward won’t kick in until the new fiscal year,” Town Manager Scott C. Crabtree said. The Full and Fair Cash Value of all taxable property – real and personal – within the Town of Saugus has been established as $4,518,642,898, according to the Board of Assessors. Residential property accounts for $3,661,724,258 or 81.04 percent of that amount. That will generate $42.4 million in taxes. But CIP property will account for $21.1 million or 33 percent of the tax base in the 2018 fiscal year, according to the plan approved by selectmen. Sizing up Saugus’s tax rate Compared to the Fiscal Year 2017 residential tax rates of other area towns, Saugus’s will remain considerably lower; the Board of Assessor’s report noted: • Saugus (FY18) – $11.59, • Lynnfield – $13.78, • Melrose – $11.80, • Reading – $14.03, • Stoneham – $12.39, and • Wakefield – $13.03. The report also noted the CIP tax rate for Saugus compared to Fiscal Year 2017 CIP rates of other area towns: • Saugus (FY18) – $24.60, • Lynnfield – $16.80, • Melrose – $16.76, • Reading – $14.03, • Stoneham – $23.21, and • Wakefield – $25.85. Selectman Jeffrey Cicolini said he is pleased by the Board of Assessors report. He suggested
that the average tax bill be included when comparing Saugus to other communities. “If you could put in an average tax bill … that’s going to tell the true story,” Cicolini said. Crabtree agreed that the selectman made a “great point.” The town manager noted last year’s average tax bills for surrounding communities: Lynnfield, $8,200; Melrose, $5,746; Reading, $7,485; Stoneham, $6,212; and Wakefield, $5,438. Crabtree noted that Saugus’s average tax bill is about half of Lynnfield’s. “We have a full-time Fire Department,”the town man-
ager said. Lynnfield has a mostly $649,900 will pay $46.29 less in volunteer Fire Department. property taxes effective next fiscal year despite an increase in Tax hikes and tax cuts valuation to $671,700 – because The Board of Assessors includ- of the decrease in the tax rate. ed sample residential and comLowe’s, which will pay mercial parcels to show value $413,750.19 in property taxes and tax changes. A two-fami- during the current fiscal year, ly home on Essex Street that is will pay $8,847.53 more next valued at $272,500 will see a year after its projected valuation $153.97 increase in its tax bill – increased from $16.1 million to or a 4.68 percent increase – for $17.2 million. the 2018 fiscal year because of The Border Cafe’s tax bill for an increase in its property valua- the 2018 Fiscal Year will be a tion from $272,500 to $296,600. projected $50,425–$4,705.45 Meanwhile, a homeowner less. The valuation of its properon Candlewood Court whose ty decreased from $2.1 million property is currently valued at to $2.05 million.