Factor of one voted best option for town's tax rate

Date: 11/30/2009

By Courtney Llewellyn

Reminder Assistant Editor



LONGMEADOW -- In the town of Longmeadow, 4.59 percent of the properties are classified as commercial, industrial or personal; the remaining 95.41 percent are residential. During the past fiscal year the two kinds of properties shared a single tax rate, and, thanks to approval by the Select Board, the two will share a single rate again this year.

The tax rate for fiscal year 2009 (FY09) was $17.11, and for FY10, the estimated rate will be $18.28, according to Finance Director Paul Pasterczyk. Why the nearly seven percent increase?

"The overall tax base of the town has declined about 3.9 percent," according to Pasterczyk. The residential base declined by 4.08 percent, but the commercial base has grown by .01 percent.

"There was an increase in the [tax] rate but most properties declined in value," Pasterczyk continued. He noted that the average value of a home in Longmeadow dropped from $370,000 to $350,000 this year, but with the estimated tax rate for FY10, the taxes paid by homeowners will be increased by about two percent.

Towns can decide to shift tax burdens to different classifications of properties, usually from residential to commerical/industrial, and Pasterczyk outlined what would result from those shifts. A 10 percent shift would mean a decrease of about $31.50 in the tax bill for a residential property but an increase of about $1,500 for commerical/industrial. A 50 percent shift, the maximum amount allowed by the state, would mean a decrease of about $161 in residential bills but an increase of approximately $5,000 for commercial/industrial bills.

"That would be an unfair shift for our miniscule commercial base," Select Board Chair Robert Barkett stated. "It would be a slap in the face."

Barbara Perry, chair of the East of the River Five Town Chamber of Commerce, agreed. She commented that even though Long-meadow has a small business base, even the smallest shift in the tax burden would have a huge impact on them. She urged the Select Board to adopt a single tax rate.

Resident Joe Occhiuti seconded her thoughts during the public hearing, stating, "I think a shift would be catastrophic ... We don't want empty stores."

Select Board member Rob Aseltine moved that the board adopt a factor of one -- a single tax rate -- for FY10. The five members of the board unanimously approved the motion.