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Assessors explain how "new growth" is defined and why it matters for Franklin's tax rate
Summary
Franklin assessors told the Economic Development Subcommittee that "new growth" — additions from new construction, accounts, or conversions from exempt to taxable — is computed against the prior year's tax rate and helps towns exceed the 2.5% baseline. The assessors said personal property and business account changes make up a large share of recent growth.
The Economic Development Subcommittee heard a detailed explanation July 23 from the town assessors about how "new growth" is identified and how it affects tax-setting.
"New growth is identified and quantified in the same manner throughout the Commonwealth," Kevin, chair of Franklin's Board of Assessors, told the committee. He said the assessors separate personal property (new items or new accounts) from real estate changes such as conversions from exempt to taxable use, lot splits, new taxable construction or qualifying changes to existing structures. The office uses an assessment date of January 1 for valuation and, in Franklin's case, reflects physical changes as of June 30 under local practice.
The distinction matters because the certified new-growth figure is applied to the prior year's levy and can permit a community to raise taxes above the 2.5% baseline under state rules. Chair Hendricks read into the record that Franklin has averaged about $88 million in new growth annually over fiscal 2024–2026, with roughly one-third from the residential side (about three-quarters of that from renovations) and two-thirds from commercial and personal property.
Assessors emphasized that cost does not automatically equal market value. "A $100,000 renovation may not contribute that amount to actual resale value," Kevin said, noting that the Department of Revenue guidelines require assessors to extract the contributory value of an improvement distinct from broader market adjustments. That legal and methodological constraint limits how much of an owner's stated construction cost may be recorded as new growth.
Committee members asked how large upcoming projects — for example, a 330-unit Grove Street development discussed during the meeting — would affect forecasts. Assessors said large projects add value incrementally as they come online and cautioned that new growth must be recertified annually and cannot be double-counted. Kevin recommended closer coordination with planning and the building department to ensure timely capture of qualifying changes.
The committee asked for follow-up materials, including a month-by-month report of open, non-assessed permits and a projected, back-of-envelope forecast for several large projects the town expects to come online.
