By DAN TOMASELLO
LYNNFIELD — The Select Board unanimously approved a shift in the town’s tax classification during a Nov. 25 meeting.
The .916970 shift approved by the Select Board means the tax rate is estimated to be $10.56 per thousand dollar valuation for residential property for fiscal year 2025, which represents an increase of 5 cents over FY24’s tax rate of $10.51 per thousand dollar evaluation. Assessing Manager Victor Santaniello noted that the average single-family home value for FY25 is $1,045,000.
“The estimated average single-family tax bill would be $11,035,” said Santaniello. “The maximum allowable shift saves the average single-family taxpayer slightly more than $1,000.”
Santaniello said the commercial, industrial and personal property (CIP) tax rate is estimated to be $19.23 per thousand dollar valuation for FY25, which is $1.24 more than FY24’s rate of $17.99.
“The estimated tax rate of $19.23 for commercial property valued at $1,315,900, the tax bill would be $25,304,” said Santaniello. “The median commercial value, which is more reflective of small mom and pop shops, is $476,000 and the tax obligation would be $9,153.”
Santaniello said the Massachusetts Department of Revenue is required to approve the tax rates.
“These rates can change a little bit through the approval process with the state Department of Revenue,” said Santaniello.
Santaniello said the average single-family home value increased by 6.1 percent from $984,900 in FY24 to $1,045,000 in FY25.
“The tax rate only went up a nickel and the average residential bill did go up approximately 6.6 percent,” said Santaniello. “The sales used to generate fiscal year 2025 assessments were calendar year 2023 sales. I am comparing them to the 2024 assessments, which were calendar year 2022 sales. The number of sales dropped down a little bit. Days on market increased quite a bit from 22 to 34, but the average sales price was up almost 13 percent from $1,071,210 to $1,209,204.”
Santaniello said the FY25 debt exclusion amount totals $4,575,164.
“It adds 81 cents to the residential tax rate and $1.48 to the CIP rate,” said Santaniello. “It adds $848 to the average single-family tax bill, $1,947 to the average commercial tax bill and $576 to the median commercial bill.”
Santaniello recalled that state law allows municipalities to give Open Space Discounts to “land that is not otherwise classified and which is not taxable under provisions of Chapters 61A or 61B, or taxable under a permanent conservation restriction.”
“There is no land classified as open space in Lynnfield,” said Santaniello about land that would qualify for Open Space Discounts.
Santaniello also said the town has never provided Residential Exemptions.
“A Residential Exemption of up to 35 percent of the average residential value could be granted, but this has only been done in a handful of communities including Boston, Cambridge, Chelsea, Brookline and Somerville,” said Santaniello. “The way that it works is your residential tax rate would rise substantially before any discount. As I have seen in all of my communities that are largely single-family, residential communities, the top third highest homeowners would end up funding the discount for everybody else. Most homes in Lynnfield are owner-occupied and are not investor-owned.”
Santaniello said the Small Commercial Exemption is an exemption that provides “up to 10 percent of the property valuation for commercial properties.”
“Eligible businesses cannot have more than 10 employees as certified by the Department of Employment and Training,” said Santaniello. “The building value cannot exceed $1 million. One business in a building could not qualify unless every other business in that building qualified. The exemption goes to the property owner. The Assessing Department is unaware of any commercial property that would benefit substantially from this form of tax relief. It creates an additional shift in the commercial class, and there is not a lot of benefit to it. As in past practices, we recommend not adopting a Small Commercial Exemption.”
Select Board Chair Dick Dalton thanked Santaniello for giving a thorough presentation during the tax classification public hearing.
“You have a way of presenting this that I have not heard in prior presentations from your predecessors,” said Dalton. “You lay it out very nicely and I compliment you for that.”
Select Board member Phil Crawford agreed.
“You have made it as simplified as we have ever heard it,” said Crawford. “I appreciate that and thank you for that. I agree with your suggestions. I think the maximum shift would be prudent this year again.”
Select Board member Alexis Leahy concurred with Dalton and Crawford’s viewpoints.
“The presentation made it really easy to understand,” said Leahy. “It does seem like this is the best option for the town.”
There were no residents who spoke during the tax classification public hearing, and the Select Board closed it.
After the discussion, the Select Board voted to approve the .916970 shift for FY25. The Select Board also voted not to adopt the Residential and Small Commercial Exemptions as well as the Open Space Discount.