A slowly improving economy and a revaluation combined to produce an increase in Boston’s FY13 taxable value by 4.2 percent, more than twice the growth that occurred in the prior year, according to an analysis by the Boston Municipal Research Bureau, a city watchdog group.
The average single family tax bill is $3,480, a $175 or 5.3 percent increase over FY12. These changes will be reflected in the city’s third quarter tax bills that were mailed late in December. Boston’s total taxable value for FY13 is $92.2 billion, an increase of $3.7 billion or 4.2 percent which compares to last year’s growth of 2 percent.
Residential value increased by $2.6 billion or 4.6 percent while the commercial property value increased by $1.1 billion or 3.5 percent when including new growth.
Boston’s tax levy in FY13 totals $1.7 billion, an increase of $69.7 million or 4.3 percent. The $1.7 billion levy is at its maximum legal level except by a Proposition 2 1⁄2 override. The normal 2.5 percent increase in the levy produced an increase of $40.4 million and new growth contributed $28.3 million or 40.6 percent of the total. As a consequence of the city’s application of full classification, commercial property represents 34.8 percent of taxable value, but pays 60.8 percent of the tax levy.
Residential property represents 65.2 percent of value and pays 39.2 percent of the levy.
The residential tax rate increased by 0.8 percent or $0.10 per $1,000 of value to $13.14 in FY13, while the commercial tax rate increased by 0.1 percent or $0.04 to $31.96. The increase in residential value and tax rate combined to increase the average single family tax bill by $175 to $3,480 for taxpayers receiving the residential exemption which saves $1,724 off their tax bill in FY13.
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