Salem Mayor Proposes 3.1% Tax Hike For Single-Family Homes

SALEM, MA -- Salem Mayor Kim Driscoll is recommending a residential property tax rate of $15.10 per $1,000 of assessed value and a commercial property tax rate of $29.54 per $1,000 of assessed value. City Council will set the tax rate when it meets on Thursday. While the tax rates are down from $15.38 and $29.98 this year, rising property values mean most property owners will see an increase in their Fiscal 2019 tax rates.

If Council accepts Driscoll's recommendation, the average single-family homeowner would see a $230.06, or 4.1 percent, tax hike, and the average two-family homeowner would see their property tax bill rise $273.18, or 4.9 percent. The owner of the average condominium would pay $281.04, or 5 percent more, and the average three-family home tax bill would rise $197.93, or 3.5 percent. The average commercial property tax bill will increase $400.08, or 7.1 percent.

The value of single family homes in Salem rose 6 percent this year, and residential condo prices were up 8.9 percent. Two-family home values rose 5.6 percent per unit, and three-family home values rose 3.7 percent per unit. Commercial property values also rose 3.7 percent.

"As you know, while Salem is seen as a leader across the Commonwealth in terms of ability to find and secure grants, it is property taxes that pay most of the cost of City services our residents rely upon," Driscoll wrote to City Councilors. "While property tax dollars help to fund the lion's share of these necessary expenditures, we always strive to manage our overall tax burden on the City's homeowners, and I am proud that we have never needed or south a Proposition 2 1/2 override."

Driscoll said that the "most powerful tool" the city had for keeping property tax increases low was "responsible, sensible, private development." Salem saw $1.5 million in new development this year, down slightly from Fiscal 2018.

"For every dollar in new growth, that is one less dollar that is coming from existing property owners to fund local government expenditures," Driscoll wrote.

If approved, the tax rate would generate $3.2 million in property tax revenue.

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Dave Copeland can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).