Tax Bill For the Average Single Family Home Will Increase by About 3.8 Percent

The annual tax classification hearing was held by the Board of Selectmen on Oct. 28. Massachusetts General Laws require that a public hearing be held prior to setting tax rate(s) and issuing the actual (versus preliminary) tax bills. Most significantly, the Selectmen voted to keep a single tax rate applicable to all property classes. The Massachusetts Department of Revenue approved the FY 2015 tax rate of $14.70 on Nov. 12.

Reading town officials engaged in a full revaluation of all properties as of Jan. 1, 2014. Calendar year 2013 sales were generally used as the basis for valuing residential properties. Calendar year 2012 and 2013 sales were generally used for valuing commercial and industrial properties if the 2013 sales were statistically insufficient.

The valuation of the average single family home increased from $446,100 in FY 2014 to $464,250 in FY 2015. The tax bill for the average single family home will increase by about 3.8 percent, from $6,575 to $6,828. The tax bill for the average single family home has increased 2.6% annually over the past ten fiscal years.

Data obtained from MLS Property Information Network, Inc. indicated that the average sale price for a single family home in Reading increased from $440,600 to $492,400 (10.5%) from calendar year 2012 to 2013 while days on market decreased almost 35% from 73 to 54.

The valuation of the average commercial property increased slightly from $1,439,700 in FY 2014 to $1,449,700 in FY 2015. The tax bill for the average commercial property will increase by about 0.5%, from $21,221 to $21,325. The tax bill for the average commercial property has increased 4.8% annually over the past 10 fiscal years.

Individual property owners should keep in mind that the tax increase percentages referred to above are the averages for all similar properties in the Town.

Property owners should be aware that Proposition 2 ½ limits the total amount of tax revenue that a community can raise in any given fiscal year. The Tax Levy can (and usually does) increase by more than 2 ½% from year to year on account of new growth (construction, renovations etc.), overrides and/or debt exclusions approved by Town Meeting, and other factors. Also, the FY 2015 Tax Levy does not include any debt exclusion funds for the upcoming library project as those notes will begin payment in FY 2016.

Property owners should also keep in mind that the assessments that they will see on their FY 2015 tax bills (due February 2015) reflect the market conditions which prevailed during calendar year 2013. Tax assessments lag behind current activity and market conditions by as much as a year.

Shortly after the actual FY 2015 tax bills are mailed in December, assessment information will be updated on our website at www.readingma.gov/assessment. There you find additional forms and information which is of interest to property owners.

EXEMPTION NEWS

Statutory exemption recipients that may have forgotten to file their paperwork; there is still time so please do stop by our office. Also, residents who may be wondering if they might be eligible for any of the following exemptions, please give us a call at (781) 942-9027:

Senior Exemption 65+, Disabled Veterans, Surviving Spouse, Blind or Tax Deferral. All exemptions are subject to various qualifying criteria.