REGION — In general, the tax rates dropped in area communities, mainly because of rising house values.
Rutland did not follow the trend, with its rate rising. The rise is due to a combination of house values rising by a small amount and the addition of the impact of the town’s $2 million Proposition 2½ override, which voters approved at the ballot box.
A tax rate drop does not mean the tax bill decreases, however.
Increases in values change the formula by which the bills are calculated, and the rate drops to compensate. Since the budget voted at town meeting rises each year, the tax bills still rise.
All five of the Wachusett towns continued to opt for a single tax rate, meaning no split in the tax rate charging businesses more.
Assessors explain that in order to benefit from a tax split, any notable change in the residential rate would require a massive increase in the commercial rate, unlike communities with large amounts of commercial and industrial property. Having a different business rate could also impact local farms, they note.
The tax rate is assessed per thousand dollars of property valuation, so multiplying the assessed value by the rate generates the individual tax bill.
Complicating it is that the first half of the year the bills were based on the previous year’s rate, so the second half bills play catch-up, squeezing the year’s increase into the second half billing.
In Rutland, the tax rate this year is $14.83, with the average house valued at $427,267, yielding a tax bill of $6,338, according to Amy Evanowski, principal assessor.
Last year’s rate was $13.72, with an average house valued at $419,830, and a bill of $5,764.
The rate was affected by the small change in values, but the bills reflected the town budget. The $2 million override impacted tax bills, she said, with the average-valued home seeing an increase of $574.
In Sterling, the rate this year is $13.31, with the average home valued at $525,400, for a tax bill of $6,993. Last year’s rate was $14.30, and for the average home valued at $465,400 the bill was $6,655.
This year’s bill is an increase of $338.
In Princeton, the tax rate of $15.14 from last year changed to $14.03 according to the state Department of Revenue. The Assessors Office confirmed the tax rate.
The average single family home value this year is $497,618, and the corresponding tax bill is $6,981, according to Terri Longtine, executive assistant for the assessors office.
In fiscal 2023, the average single family home was valued at $458,009, with the average tax bill of $6,934, Board of Assessors Chair Helen Townsend said.
That reflects an increase this year of only $47 for a home of average value.
In Paxton, the tax rate of $16.07 was down from $17.58, with the average home valued at $459,020, seeing the average tax bill increasing $123 to $7,376.
In Holden, the rate dropped from $14.99 to $14.15, but for the average home valued at $490,341, the tax bill rose by about $300.
