Select Board keeps single tax rate, rejects residential and small-business exemptions

The Westborough Select Board voted Dec. 2 to maintain a single residential tax rate (residential factor of 1) for fiscal 2026 and to reject proposed residential and small commercial exemptions after a public hearing that drew residents and business representatives.

Finance Director John Steinberg reviewed the town’s fiscal numbers and scenarios. He said the FY26 levy limit is about "$120,771,007" and the actual proposed FY26 levy is "$105,550,935," with an excess levy capacity of "$15,220,072.25." He outlined the mechanics and impacts of shifting portions of the levy from the residential class to commercial/industrial/personal property (CIP) classes, explaining that a split rate can reduce the residential rate but raises taxes on commercial properties and large apartment complexes. "If you adopt a single tax rate, the estimated tax rate is $15.93," Steinberg said in examples.

Public commenters included Karen Chapman, president of the 95 Regional Chamber of MetroWest, who urged the board to retain a single tax rate to protect small businesses that help support community events and charities. Other residents urged a shift to relieve residential taxpayers. Board members debated fairness, economic development impacts and the distributional consequences of exemptions and split rates.

After deliberation, the board adopted a motion "to not adopt a residential exemption or small commercial exemption and to maintain a single tax rate by adopting residential factor of 1." The motion passed 4–1 with five members present. The board’s majority said a single rate preserves predictability for businesses and avoids shifting costs unevenly among residents; members opposing the motion argued the split could provide relief to homeowners.

The finance director reminded the board the numbers discussed are estimates and will be refined when final values are set during tax-rate calculation and the town’s budget process.