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We taped a TM Roundtable show this past Thursday where we explained that the property tax rate in and of itself is not a predictor of a high tax bill, as has been recently claimed.
Apparently some people are under the impression that if they transplanted their property configuration to another town with a lower tax rate, they could save on real estate taxes.
Using the attached assessment property assessment summaries, we illustrated that Concord's (Mass.) tax rate of 14.07 vs. Chelmsford's 17.95 does not mean that the taxes paid are 22% higher in Chelmsford, as has been suggested by some political mailings. We compared two similar properties, one in Chelmsford and one in Concord, both with identical lot size and same style/size house, and showed that the Concord resident pays about $1000 more per year for property tax than the Chelmsford Homeowner.
The FY 2013 TAX RATE in Concord is $14.07, and the homeowner pays $4,501 per year. (.01407 X $319,900)
The FY 2013 TAX RATE in Chelmsford is $17.95, and the property owner pays $3,539 per year for the same acreage in a very similar neighborhood, with the same type of house, actually a bit larger. (.01795 X $197,200)
Concord and Chelmsford both are "full service infrastructure" towns, that is, they provide municipal water and sewer service, they have natural gas in the streets, full-time police, fire & EMS, DPW. Two virtually identical properties, one in Concord, the other in Chelmsford, comparable municipal services, but the Concord homeowner pays $1000 more. I'd say the Chelmsford taxpayer at $17.95 gets a better bang for his residential property tax bill than does the Concord taxpayer at $14.07.
What do you think? You may want to link the show to your ITR and other sites.
Town Manager's Roundtable 022- "Taxes,Property Assessments and Budgets"