The Needham Select Board voted Nov. 25 to establish a residential factor of 0.8988 for fiscal year 2026, a decision that incorporates the board’s continuation of the 1.75 tax shift that places a larger portion of the burden on commercial and industrial property owners than on homeowners.

Director of Assessing Julie Castadillas told the board the Department of Revenue has certified Needham’s values. Needham assessed about 10,919 parcels this year and a total taxable value of $16,737,745,250, roughly a 3.9% increase over the prior year. Castadillas said residential values rose about 5% while commercial and industrial values decreased roughly 8.5% in the townwide revaluation.

Select Board members and residents pressed assessors on several technical topics: the spike of abatement applications (about 390 filings following the revaluation), how new growth is counted (teardowns vs. renovations), the small commercial exemption (targeting commercial properties under $1,000,000 and with five or fewer employees), and how abatements and tax‑exempt parcels affect town revenue. Town finance staff explained that abatements and exemptions reduce actual tax dollars collected and that some large projects (for example, a nonprofit hospital) may make voluntary payments negotiated with the town.

During public comment, residents including Jean McKnight (Large House Review Committee), Joe Abruzzi and others raised concerns about new growth from renovations and reconstruction and the implications for school impacts and homeowner tax burdens. Assessing staff said they would produce additional reports if requested and continue community outreach to explain valuation and abatement processes.

After the hearing, the board moved, seconded and approved the residential factor by voice vote. The classification decision will be recorded in the town’s tax recap submitted to the Department of Revenue and used in setting the FY2026 tax rates.

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