Have you heard the latest?The Hamilton Board of Selectmen (BoS) voted on Monday, November 30th, to increase the property tax rate from $15.23 per thousand to $16.25 per thousand (of assessed value).
That's right...INCREASE.
Here's their reasoning for raising your taxes 6.7% during the worst economic recession most of us have ever experienced:
According to the Hamilton Board of Assessors and the BoS, the total value of property in Hamilton has decreased by 4.1 percent this year. Of the total, 95 percent is residential, 4 percent is commercial, and 1 percent is personal. They say that the average single-family home values have decreased by 4.4 percent since fiscal 2009. When property values decline (they say), the tax rate on real estate automatically increases (a 4.4% average in this case for residential property owners and a 4.1% total increase for all property) to keep the tax revenues "neutral". If you subtract out the 4.1%, the net rate increase is 2.6% which is roughly the equivalent of the 2.5% levy growth.
That's their explanation.
Let's analyze that. First of all, it assumes that when you get your next property tax bill, your home will be assessed at 4.4% less than last year.
Anyone care to bet on that?
If it's not, then you should join the hundreds of other homeowners and get in line down at Town Hall to file for an abatement. To apply for an abatement, you must file within 30 days of receipt of your January tax bill.
Secondly, the explanation assumes that the tax levy must rise by 2.5% in order for taxes to be "revenue neutral". That's simply ridiculous. The 2.5% increase is ALLOWABLE, it is not REQUIRED. It's not a statute. It's a permissible entitlement that has come to be expected, but it should not be during these recessionary times. I blogged and conducted a poll about this last September [click here] and 86% of the respondents to the poll indicated that they would be willing to accept cuts in services in order to see a 0% increase in their property taxes for one year.
Lastly, the BoS's explanation that "when property values decline, the tax rate on real estate automatically increases" doesn't seem to account for the fact that when property values were rising, our real estate tax rate also increased. At least then we were seeing equity growth in our homes. Increasing taxes, even as the equity in our homes diminishes, simply adds salt to the wound.
And it goes even further than that. Higher tax rates (and Hamilton's are the highest on the North Shore) are driving buyers away from our town in favor of neighboring communities with much lower rates. Additionally, the high costs are driving residents away (read: Voting With Your Feet)...if only they could sell their homes. Which they can, but at discounted prices as compared to other towns.
And so, even as values decline due to the exceedingly high property taxes in Hamilton, your Selectmen have voted to increase your taxes...causing values to decline even more...and so on.
You have heard the term "enough is enough". Apparently our elected officials have not.
"Hello?...Is the mic on? Can you hear me out there?"
I'm totally and completely disgusted with the leadership in both Hamilton and Wenham. They are, almost universally, incompetent. There is ONE exception - but he's a Wenham selectman (and doesn't have very much power, unfortunately).
ReplyDeleteMy property taxes, in 1999, were $1699 per year. I'm now paying $5900+ per year - a 347% increase in ten years!! WE CANNOT afford that! Sooner or later, the cost of living in town will drive out all but the very richest. IS THAT WHAT WE WANT?
I think everyone expects Hamilton to raise property taxes year after year, afer year, plus ask for add'l overrides. it's a given.
ReplyDeleteI'm getting concerned that Hamilton Govt's interputation of Enough is Enough can also mean, "We give up."
good for you.
ReplyDeleteLet's keep taxes low.
We have raised three children in Hamilton. They are all products of the Regional and were all active participants in a wide range of school activities. We supported the town in many varied ways. We live in an average home build in the early 70s. Our home value has plummeted in the past two years yet my taxes have increased...and with this "new' tax increase we are just about overburdened. We pay nearly 800 per month in taxes...for an average home on an average piece of property...and I can dispose of one bag of trash per week and say that we live in a town with good schools...although they are no better than many surrounding communities and offer much less. We have a Superintendent who is paid as much as much larger districts and teachers who say they are underpaid yet their salaries are comparable to all around the north shore with far less diversity and "challenging students" than many surrounding towns. Our town hall closes for three days surrounding Thanksgiving, we are not benficiaries of town sewer and our police and fire departments have been cited for costly and illegal actions. Hamilton was once a town of which I was proud.
ReplyDeleteThese tax increases are driving us out of town and the sad fact is, our board of selectmen and the school committee could care less. EIE has led a valiant battle and I hope they continue to do so but apparently, there are ways around it. I fear that my husband and I are also ready to "give up".
I'm wondering if the BOS were sold a bill of goods from the Accessorers. They claim that with property values droping and the tax rate increasing that it will be a wash?? I for one DO NOT BELIEVE THEM !!!
ReplyDeleteI am glad you have written this blog...too bad that most town brass will look at it and say "isn't that too bad", and then go right along doing their thing. We have not only the BOS but the FinCom that doesn't get the drift that people are getting tired of business as usual with town brass and their handling of town business. It's like we have always raised taxes every year, so lets keep doing it. And we all believe the school board will give the teachers a raise regardless and then tell us how they need another 2 1/2 override vote to pay for it and blame EiE and seniors if it doesn't pass..I am glad the comment from one anonymous at least gave EiE credit for trying
ReplyDeleteto do something.
Dear Anonymous (posted at 1:04 PM)...I am saddened by your plight and recognize the many, many others that are experiencing the same unnecessary pain. This morning I receved an email from Selectman Jennifer Scuteri who had read your comment and was likewise concerned. She has recommended that as many people as possible attend the Selectman's meeting tomorrow (Monday, December 7) night at 7:00 at Town Hall where she is planning a general discussion of ideas to, in her words, "get our Town back on track".
ReplyDeleteThis is a very positive sign, but residents need to attend the meeting and let their voices be heard if we hope to affect change.
I hope you can come and will encourage others to attend as well.
In the meantime, your plight only strengths my resolve, and hundreds of others like me - such as those in EiE - to continue to fight for fiscal responsibility in Hamilton and Wenham in an effort to lift the burden of excessive taxes in our towns.
Thank you for sharing your story.