The tax rate in Lakeville, traditionally one of the lowest in the area, will increase by almost a dollar-per-thousand valuation for 2011 to $11.20.
LAKEVILLE — The tax rate in Lakeville, traditionally one of the lowest in the area, will increase by almost a dollar-per-thousand valuation for 2011 to $11.20.
The Board of Selectmen voted last week to maintain a single tax rate for all properties in the town, increasing the rate from $10.22.
Selectmen followed a recommendation from the Board of Assessors that the tax rate remain the same for everyone. It had the option to discount the residential tax rate while raising the rate for commercial properties.
The increase in the tax rate is counter-balanced somewhat by a decrease in property values since last year.
An average single-family home that was assessed at $324,100 last year had an average tax bill of $3,312. In 2011, that home is valued at $306,535 and, under the new tax rate, will pay $3,433, an increase of $120.89.
The average condo increased in value from $235,300 to $240,350 and the tax bill will go from $2,404 to $2,691, an increase of $287.16.
The big change came in the commercial sector, where the assessments dropped from an average of $1,177,400 to $1,011,150. The 2010 tax bill of $12,032.79 will drop under the new rate to $11,324.91, a decrease of $707.88.
"Full and fair cash value means that, based on assessments and given the tax rate, we will treat everybody the same," Dana Lucas, chairman of the Board of Assessors, said. "Given the tax rate, the commercial tax bills came down, because their assessments came down. Full and fair means no special treatment for anybody. We'll treat everyone the same and not burden one class rate over another.
"In the classification hearing, the selectmen consider all exemptions and tax rate options available to them. We offered the single-rate recommendation. We erred on the side of what we did in the past.
"It speaks to what your town wants to provide in incentives, perhaps, if you are looking for considerable commercial and industrial growth."
Lucas pointed out that selectmen also have the use of tax incentive financing to attract commercial businesses.
"The commercial base here is small, about 12 percent," said Benjamin Mello, office manager for the assessors. "In order to split the tax rate and make it feasible, you need between 15-20 percent commercial. It makes it attractive to businesses to have a single tax rate."
Lakeville's tax base is more than 85 percent residential and 12-13 percent commercial and industrial. The remainder of the tax rate is made up of personal property, almost 2 percent of the tax base.
"The tax rate has to be approved by the Department of Revenue and the things that have contributed to the state of the economy have affected the assessors, where we had to cut office hours, and at DOR where they had to lay off people," Lucas said.
"We are on pace to have the tax bills out on time. If we don't get DOR approval in time, estimated bills will be sent out by the end of the year."