Watertown officials ask Legislature to make property‑tax split permanent to avert steep residential hike
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Summary
Watertown leaders told the Joint Committee on Revenue that a permanent 50% minimum residential factor in H.46‑87 would prevent an estimated 18% residential tax spike in FY27 tied to changes in an obscure 1988 statute; city officials said the change continues recent practice and would be revenue‑neutral overall.
Watertown officials urged the Joint Committee on Revenue on Thursday to approve H.46‑87, a bill that would permanently set a 50% minimum residential share of the city’s property tax levy to avoid a projected, one‑time jump in homeowners’ bills.
City Manager George Proakis told the committee that a calculation tied to Chapter 200 of the Acts of 1988 and frozen 1982 baselines has limited Watertown’s ability to shift taxes onto commercial properties as the city has grown. "We project that Watertown's residential taxpayers will face an 18% hike in '27," Proakis said, and asked the legislature to establish a permanent 50% minimum residential factor so that the city can continue the tax split it has used since 2024.
The city described a decade of concentrated commercial development — including life‑science and lab space at Arsenal Yards — that raised the commercial class from about 18.87% to roughly 28% of assessed value while residential share fell from about 81% to just under 72%. Proakis said the consequence of that growth, under the current statutory floor, is that more of any new tax burden would fall on existing residential taxpayers unless the Legislature acts.
Watertown City Council President Mark Sedaris framed the request as a continuity measure: the city seeks to continue the practice used during the three‑year reprieve granted in 2024, rather than impose a new approach. "We're requesting some relief to continue what we've been doing," Sedaris said, stressing the impact on residents on fixed incomes.
City Assessor Earl Smith provided a concrete illustration: Alexandria Real Estate — a major biotech property owner — accounts for roughly 10% of Watertown’s tax revenue; Smith said Alexandria paid approximately $19,000,000 in tax last year and estimated that if the reprieve expires the company’s bill could be about 15% lower, a difference of roughly $2.9 million that would otherwise be absorbed by homeowners.
Committee members pressed officials on whether large businesses would relocate if the permanent change passed; Proakis said the three‑year reprieve showed no exodus and that regional commercial values are modestly declining, limiting the risk to businesses. Officials also outlined Watertown’s fiscal cushions: certified free cash near $30 million and a stabilization policy targeting 8.5–15% of the city’s roughly $220 million budget.
The hearing was for testimony only; committee members asked questions but took no vote. Under House rules, the matters filed in the House must be reported out by March 28.