Politics & Government

Danvers Taxes To Rise $269 For Average Single-Family Home

The Danvers Select Board voted down putting a larger share of the tax burden on commercial properties amid pandemic loans and stimulus.

DANVERS, MA — The average Danvers single-family homeowner's annual tax bill will rise about $269 in 2022 based on a tax levy distribution approved at Tuesday night's Select Board meeting.

According to the figures shared at the meeting, the approved levy increases the burden on commercial properties from a 1.407 ratio in 2021 to 1.422 in 2022, but falls short of a proposal that would have increased the difference to the maximum 1.5 for the upcoming year.

Select Board Chair Gardner Trask said the 1.422 rate was the best way to keep the percentage increase equitable between residential properties and commercial properties. Under that rate, Trask said the average residential tax will go up $209 for the year —with the average single-family home rising $269, the average condo rising $161 and the average two-family home rising $176.

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Select Board member Dan Bennett had proposed the higher rate for commercial businesses based on the amount received across the town through the Paycheck Protection Program and the Restaurant Revitalization Fund during the pandemic as well as the waiving of business liquor license fees for 2021 while many bars were still closed and restaurants, gyms, stores and other personal service businesses faced coronavirus capacity restrictions.

Danvers businesses got $133 million in PPP loans and $7.66 million in RRF money.

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The 1.5 ratio would have raised the average single-family home bill by only $89 but would have caused the average commercial bill to skyrocket $3,250.

But Trask added that the government assistance was not funded equally to all businesses and having that large of a one-time shift in the tax burden would make it more of a shock to residents to return to a more traditional split in 2023.

"Not every business got a PPP loan," Trask argued. "The PPP loans were to keep them afloat, keep them running. You can't say PPP loans kept them at the same level of profitability.

"If we go to 1.5 now you're going to have the backlash when you back off later."

The Select Board voted 5 to 2 in favor of Trask's proposal before Bennett's countermotion to increase the commercial burden to a 1.428 ratio could be considered.

The increase is to meet budget requirements voted in during the annual town meeting in the spring.

Assessments for all Danvers property went up in 2020 with the value of the average single-family home increasing 9 percent in value, the average condominium increasing 10 percent and two-family homes increasing 8 percent.

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. Twitter: @Scott_Souza.)

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