Date: 12/14/2022
AGAWAM – The new tax rate set by the City Council is lower than last year, but homeowners and business owners won’t see a decrease in their bill because of increasing property values.
The council met on Dec. 5 to set the tax rate.
Mayor William Sapelli said the new tax rate was set “in the interest of taxpayers – business owners and residents.”
The previous year’s tax rate was $30.58 per $1,000 in valuation for commercial properties and $16.11 per $1,000 for residences. This year the rate dropped to $30.19 per $1,000 for businesses and $15.78 per $1,000 for residences.
“We always have that challenge to be fair to both parties,” Sapelli added. He added the increase in property valuations cancels out the decrease in the rates.
He acknowledged that taxpayers are also facing inflation in their other expenses by stating “everything is going up.” Sapelli added, “I’m very cognizant of that fact.”
He explained when the council sets the budget in June it determines what the new tax rate is going to be.
Assessor Carolyn Reed said with an average home value of $275,456, Agawam is in “the lower end” of valuations. Fiscal year 2022 saw the average family residence tax bill at $4,438. The average bill for FY23 would be $4,619, an increase of $182.
For commercial properties under $500,000 in value, the average increase in tax bills is $196. Properties of more than $500,000 in value would see an average increase of $1,555.
Reed said she is seeing an increase in businesses in the town, which she called “a good thing.”
Councilor Robert Rossi called the new rate “pretty reasonable and fair,” while Councilor George Bitzas said he has received “many complaints and phone calls” from residents about the residential tax rate.
Bitzas offered an amendment that would have changed the split between the two classes of property, yielding a greater increase in business property taxes in exchange for less of an increase for homeowners. It was defeated with three in favor, seven opposed.
In other action, the council tabled two items until the next meeting concerning the creation of a park at the former Tuckahoe Turf Farm in Feeding Hills.
The council approved renewals of several business licenses without discussion, but did have comments about licenses for The Still, a bar and restaurant on Springfield Street in Agawam. Rossi, who chairs the subcommittee that reviews licenses, said he wanted a provision added to the bar’s entertainment license that would require two police officers be present on Friday and Saturday nights when live music is presented for the next three months. He did not elaborate on what incident prompted this request.
The council controls the issuing of entertainment licenses but not liquor licenses, which are handled by a separate License Commission. That board recently imposed a similar requirement on The Still. City councilors voted to impose the requirement and to keep it in place as long the License Commission has its own provision in place.