Council To Set Property Tax Rate Tonight
Mayor Driscoll calls proposed increase one of the lowest in the region. No agreement yet with Dominion Resources.
Salem taxpayers are likely to learn tonight what they will be paying in property taxes next year. The city has not yet reached an agreement with Dominion Resources on what it will pay in taxes for 2012, but that should not affect the tax rate for next year.
The proposal from Mayor Kimberley Driscoll is to raise taxes on single-family homes and condominiums, while the proposed taxes on duplexes and tri-plexes is expected to go down.
The City Council is expected to act on the tax rates at a special meeting, probably its last for the year.
The valuations of commercial properties have held steady, which means businesses will see only a modest increase in their taxes. Commercial properties are taxed at a higher rate than residential properties.
The single-family taxes on an average home are proposed to go up $127. Condominiums would go up by $37 on the average-priced home.
Two-family homes would get a decrease of $38 on an average-priced structure. And three-family homes would see a decrease of $115.
Driscoll said the average property tax increase of $82 is “one of the lowest on the North Shore.”
In her letter to the councilors, she wrote: “A simple perusal of our balance sheet indicates that our diligence and hard work over the last several years has paid off as we are in a much stronger financial position than we were five years ago.”
The City Council had planned to set the tax rate last week, but the state Department of Revenue would not certify that tax rate until the city and Dominion Resources reached an agreement regarding how much Dominion will pay the city in taxes next year.
Jason Silva, the mayor's chief of staff, said Wednesday that the agreement with Dominion has not been reached.
Dominion, which is downsizing the Salem power plant, believes it should pay less than the $4.75 million it paid the city this year.
Thanks to a measure pushed through by state Rep. John Keenan and state Sen. Fred Berry, the state has agreed to make up Salem's loss from lower taxes caused by Dominion's departure for the next five years. Those funds, which will rise each year, will be paid out of a regional fund created by energy companies and others that contribute to a greenhouse gas fund.
The council is also expected to act on the mayor's request to move about $1 million from the free cash fund to help keep the residential rate hikes as low as possible. The council will also be asked to transfer about $1.3 million in free cash from this year's budget to the stabilization, or rainy day fund, and the capital improvement fund.
windpower
10:03 am on Thursday, December 15, 2011
Free cash ! Where do I go for that !
john
12:48 pm on Thursday, December 15, 2011
I love it when the mayor compares Salem to other north shore towns. If I am not mistaken our new school boss is one of the highest paid on the north shore,why? Peabody residents pay much less in taxes than we do in Salem. We really can,t be compared,on any level, to Marblehead or Swampscott. Beverly,Peabody and Danvers all have much more commercial tax income then we do. We have all these institutions that are tax exempt so why do we try to compare our city to any other? Stop waisting money on foolish projects,impact studies on everything,raises,parking lots and boardwalks.
KlassySalem
1:07 pm on Thursday, December 15, 2011
Good point. Also look at our residential and commercial tax rates. Among the very highest around.
Jared Robinson
2:34 pm on Thursday, December 15, 2011
100% agree. Beverly has the Cummings Center. Peabody has the NorthShore Mall and Danvers has the Liberty Tree...
Salem has... um... we have that strip out on Highland Ave and um... a dirt mall.
Matt
2:09 pm on Thursday, December 15, 2011
No mention of how taxes are increasing on an asset (our homes) that has steadily decreased in value, and will continue to do so in the short-term?
Jared Robinson
2:35 pm on Thursday, December 15, 2011
two years ago, my house was valued at $240,000... now? $188k... I want to refinance to a lower rate but now I'm upside down... I sure hope they assess my taxes on the new value of the house. Might wash.
john
2:46 pm on Thursday, December 15, 2011
Believe it or not ,the government does have a refi program for people in your situation that can result in a new rate between 2%-4%. You have to do some leg work but it would be worth it for many. I am not sure of what is needed to qualify but I think it is called the HAMP program and it is legitimate
Jared Robinson
2:50 pm on Thursday, December 15, 2011
would this be something a local credit union could help me with or would I need to find a specialist?
john
3:01 pm on Thursday, December 15, 2011
If you google HAMP program you will find a lot of info. As Isaid it is a government program and I think you apply directly through that program. Look for and call any 800 number you can find and you should be able to get some answers. A friend of mine did it the other day all over the phone and got an answer that same day. Unfortanetly he was denied because of an issue with a workers comp case but you will never know if you don't try.
Jared Robinson
3:03 pm on Thursday, December 15, 2011
Looks like I won't qualify. My mortgage to income ratio is lower than 31%
Not by much, but enough that I wouldn't qualify :(
john
3:10 pm on Thursday, December 15, 2011
You would know your situation better then anyone else but I would still make some calls if I were you and here's why,the Obama administration has been somewhat critical of the fact that people have not taken advantage of this program so maybe there is some flexibility?????
john
2:38 pm on Thursday, December 15, 2011
As I have stated on numerous other topics there is a perfect storm brewing in Salem and I don't see Salem rebounding to what we once were.
john
3:39 pm on Thursday, December 15, 2011
This is what really drives me crazy. A number of years ago my house was valued at $340k today about $280k yet in my 27 years in this house my tax bill has never been higher.I think the mayor has 4 people working in her office. Does it really take 4 people to do this bad of a job? Many years ago I had problems with the state and Rep. Ruane was helping me. He had 1 person that handled everything and keep in mind that he talked only when he had to because of his throat cancer.I never once spoke to him directly but his one person staff resolved the problem.