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Selectmen Vote to Keep Single Tax Rate

By Michelle Murdock, Freelance Writer

At the Tax Classification Public Hearing on Tuesday, November 20, the Board of Selectmen voted to keep a single tax rate for all property classes for Fiscal Year 2013 (FY2013). The decision was made after a presentation by Principal Assessor Robert Bushway.

The total value of Hopkinton’s taxable property is $2,809,910,656, of which 83% is residential and 17% is a combination of commercial, industrial and personal property. The percentage split between residential and commercial has remained relatively constant, but is expected to change as the 940 residential units at Legacy Farm are built out. A study group has been formed that will look at new growth as it relates to Legacy Farms and will provide insight on what to expect for Hopkinton’s future tax base.

The average single family property assessment is $478,356, up slightly from last year’s value of $474,038. The average assessment for a condominium is $241,918 also up from last year’s value of $239,085. Based on the current FY2012 tax rate of $17.05 per thousand, the average tax for a single family property is approximately $8,100.

Bushway began his presentation by explaining that the purpose of the hearing is to provide information so that the selectmen can determine if there should be a shift in the tax burden between property classes. The hearing does not determine the tax rate, nor does it determine how much money can be raised by taxation.

Bushway also presented trends over time for property values and tax rates. Property values in FY2008 averaged $518,552 for a single family home and steadily declined through FY2012 to $474,038. The average for FY2013 is slightly up at $478,356. Changes are driven by the real estate market and the overall state of the economy. Hopkinton’s tax rate, on the flip side, has steadily increased from $12.67 in fiscal year 2006 to the current FY2012 rate of $17.05. The tax rate for FY2013 is not yet set, but will be before the end of the year so that tax bills can be mailed out.

Bushway’s presentation also compared the allowable and actual tax levies over the last few years. From FY2008 to the present, Hopkinton has had a steadily increasing excess tax levy capacity with a value for FY2013 at $1,271,547.

“We’re proud of that number,” said Brian Herr.

Bushway's presentation also identified the top five tax payers in Hopkinton:

1) EMC - $2,414,756
2) Hopkinton LNG - $636,412
3) NStar Electric - $457,692
4) Elmwood Perk Property - $426,915
5) Verizon New England - $410,482

It was also shown that any shift in the tax burden to commercial and industrial tax payers would result in minimal savings for the residential payers and significant increases for businesses located in Hopkinton.

Representatives from both EMC and PerkinElmer attended the hearing and spoke in favor of maintaining a single tax rate. At the end of the hearing, all members of the board spoke in favor of keeping a single tax and voted unanimously to do so.

The full presentation by Bushway can be found on the town’s website.

A final topic discussed at the Tax Classification Hearing was the tax relief that is available to residents in need. There are several options available through the Town of Hopkinton for real estate tax relief:

  • Elderly Exemptions
  • Senior, Surviving Spouse
  • Blind
  • Disabled Veterans
  • Tax Deferral
  • To discuss your eligibility, call the Assessors Office @ 508-497-9720 and speak to Liz. The town also offers a Senior Work Off program. Eligible residents receive real estate tax credits in exchange for services rendered to the town. Please call Cindy Chesmore @ 508-497-9730 to inquire about your eligibility. And finally, tax relief is also available through the Tax Relief Committee. Please call Nancy Haines @ 508-435-9660 to determine eligibility.