Please do not leave this page until complete. This can take a few moments.
Worcester’s City Council voted 8-3 to raise the city’s commercial property tax rate Wednesday night, while lowering the residential property tax rate.
Fiscal 2021 commercial tax rates were set at $36.20 per $1,000 assessed valuation, and residential rates were set at $16.28 per $1,000 assessed valuation. The changes represent a $1.04 increase and 72 cent decrease per $1,000, respectively.
Worcester already had the highest commercial tax rate in Central Massachusetts before the increase, as it along with Hudson and Framingham are the only communities whose rates exceed $30 per $1,000 valuation.
Councilors agreed to reduce the city’s overall taxes by $1 million by tapping into the City Manager’s contingency account.
The decision to raise the commercial property tax rate ultimately hinged on concerns about raising residential property taxes while property valuations in the city have been increasing.
At-large Councilor Donna Colorio, specifically, expressed concern about tax increases impacting owners of two and three-family properties, who she said would likely pass those increases off to tenants by increasing rent prices.
At-large Councilor Morris Bergman referred to data indicating 40% of commercial properties in the city are valued at less than $250,000 with another 25% valued between $250,000 and $500,000, while the average commercial property in Worcester was valued just under $1 million. He reasoned that increases incurred by most commercial property owners would therefore not be as dramatic as they looked on paper.
“I don’t relish commercial property taxes going up, I don’t relish residential property taxes going up… none of us do… but I can’t in all good consciousness (sic) ask the two- and three-family property owners to pay more than half or two thirds of the commercial property owners in a tax increase,” Bergman said. “I just can't justify that.”
At-large Councilor Kathleen Toomey, Mayor Joseph Petty and District 5 councilor Matthew Wally voted against the rate changes.
Stay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Sign upWorcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
SubscribeWorcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
See Digital EditionStay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
2 Comments