In a recent city council meeting, officials discussed the allocation of property tax burdens among various classes, including residential, commercial, industrial, and personal property. The residential sector accounts for a significant 87.9% of the total taxable value, while commercial properties contribute 7.17%, industrial properties 2.22%, and personal property 2.67%. The proposed single tax rate, if applied uniformly, would yield a tax rate of $0.01225, equating to a total tax levy of approximately $129 million.

The council considered two exemptions: a residential exemption and a small commercial exemption, both of which have never been granted in Beverly. The mayor has opted not to recommend these exemptions. Additionally, a 25% exemption for open space properties was discussed, but with only one property classified as open space, this issue was deemed moot.

A key point of discussion was the potential to shift a portion of the tax burden from the residential class to commercial, industrial, and personal property classes. The maximum allowable shift in Beverly is 1.75%, which could translate to approximately $11.7 million being moved from residential to commercial properties. This shift is crucial as residential property values have been increasing at a faster rate than commercial values, creating a need for adjustments to maintain equitable taxation.

The city’s total property valuation stands at approximately $10 billion, with residential and open space properties valued at around $9 billion. The council noted that the residential sector continues to outpace commercial growth, prompting the need for a consistent shift of 1.75% over the past four years.

Council members raised concerns about the implications of these tax shifts on homeowners and businesses, particularly as the average single-family tax bill is expected to rise by about 4%, while commercial and industrial property owners may see increases of over 13%. The council emphasized the importance of transparency in these changes, ensuring that residents understand the factors influencing their tax bills, including property valuations and the overall budgetary needs of the city.

The meeting concluded with a call for the council to approve the proposed tax rate and shifts, which are essential for maintaining the city’s financial stability and ensuring timely issuance of tax bills for the upcoming fiscal year.