Tax bills on the average single family home in Somerville will increase by $293 next year but bills will decrease by $88 dollars a year for the average condo in the city based on new tax rates announced Tuesday.
As property values increase in Somerville, the residential tax rate is set to drop by 5.7 percent from $13.42 per thousand dollars of property value to $12.66 for Fiscal Year 2014, according to a press release from Mayor Joseph Curtatone’s office Tuesday.
Commercial rates are also dropping by 3.9 percent from $22.38 per $1,000 of value to $21.51, according to the city.
Somerville has been able to reduce the tax rate because of $3.5 million in new growth last year, more than a $1 million increase from the previous year, according to Curtatone’s office.
Most of the new growth came from commercial and residential construction at Assembly Row. Construction and renovations at other locations, such as the Max-Pak development, the Public Storage facility at 50 Middlesex Ave., the new Stop & Shop on Route 16 and new personal property growth at 50 and 70 Inner Belt Road also contributed significantly to the growth.
“This is just the beginning of the benefits that Somerville residents and businesses will reap in return for the prudent investments that the City, the Board of Aldermen, and this community have been making to spur smart development in our city in recent years,” Curtatone said in a press release.
City Assessor Marc Levye said that because of the reduction in the tax rate, residential owners in the city will save a total of $2.6 million next year.
“Most residential owners will see either a smaller increase or an outright decrease in their tax bill,” Levye said. “This is significant good news and it’s due in large measure to Assembly Row.”
Tax bills on the average condo valued at $338,000 will decrease by $88 next year for owners who qualify for the city’s residential exemption. The average value of condos in the city has increased from $323,000 last year, said Levye.
The value of the average single family home in the city has increased from $417,500 last year to $467,000, and the tax bills will increase by about $293 a year for owners who qualify for the residential exemption, according to the city.
The average Somerville two- and three-family homes are now valued at $529,400 and $598,100, respectively. The tax bill on the average two-family home will increase by $39 and the average on a three-family home will increase by $53 a year, according to the city.
The value of the average two-family home has increased from $494,00 last year and the average value on three-family homes has increased from $558,800 last year, Levye said.
Tax bills on the average four to eight family building valued at $772,600 will decrease by $42.