WORCESTER—Worcester residents’ property taxes will go down by an average of $103 in 2024.
The Worcester City Council voted Tuesday to set the city’s residential tax rate at $13.75 per $1,000 of assessed value and the Commercial, Industrial, Personal Property Tax rate at $30.04 per $1,000. The latter’s property owners will see their tax bill increase by an average of $175.
The city council’s vote included an extra step this year thanks to a higher than expected amount of newly taxable property joining the tax rolls.
The city’s FY24 budget predicted new growth of $6.5 million, but the city actually saw over $11.2 million worth of newly taxable property added to the tax rolls, according to City Manager Eric Batista.
As a result, Batista’s administration provided the council with two tax levy alternatives. The first tax levy alternative of over $379 million meant putting all of the additional over $4.7 million toward relieving the tax burden. The second tax levy alternative of close to $382 million meant putting $2 million toward relieving the tax burden, $1 million into a Fire Stabilization Fund, $1 million into a new School Capital Maintenance Stabilization Fund, and over $700,000 into the New High School Stabilization Fund.
The city council voted 11 to 0 to select the second tax levy alternative. The council then voted 7 to 4 for the lowest residential tax rate possible with that tax levy alternative. Mayor Joseph Petty, District 1 Councilor Sean Rose, District 4 Councilor Sarai Rivera, and Councilor At-Large Kate Toomey all voted against the rate.
Last year the council also voted for the lowest possible residential tax rate at that time of $14.34 per $1,000 of assessed value, and a Commercial, Industrial, Personal Property Tax Rate of $31.26 per $1,000. Even with the lowest rate, the average residential property owner saw an increase of 9.6% or $431 in their 2023 tax bill.
Alex Guardiola, vice president of government affairs and public policy for the Worcester Regional Chamber of Commerce, spoke during the public comment portion of the meeting Tuesday and called on the council to vote for rates that would decrease commercial property taxes by an average of $1,085 and increase residential taxes by an average of $1. That residential rate would be $14.03 per $1,000 of assessed value and the commercial rate would be $28.99 per $1,000.
Guardiola said the rates would give some relief to small businesses and failing to do so would be irresponsible. The chamber has been vocal about its wish to move to a single tax rate in the city. Guardiola said Tuesday that the commercial tax base in the city has decreased to 20% in 2023 and pointed to the city’s dual tax rate as the reason.
Only Toomey and Petty voted in favor of the rate the chamber endorsed.
Toomey’s reasoning for her vote was that it’s very difficult for small businesses starting out, stating that on average they don’t break even for five years. She said it’s incredibly important to encourage new growth and maintain existing businesses.
Other potential rates that were raised were a residential tax rate of $13.90 per $1,000 of assessed value and a commercial rate of $29.47 per $1,000.
Rose raised those rates, saying that both commercial and residential property owners would see a decrease in their bills and he said both would win. Residents would have saved an average of $51 and commercial property owners would see an average decrease of $509.
The vote failed 4 to 7, with Rivera, Rose, Petty, and Toomey voting in favor of it. Rivera said her concern lies with “mom and pop” businesses and she really wanted to support those places.
Ultimately the lowest possible residential rate of $13.75 per $1,000 of assessed value passed. When Councilor At-Large Donna Colorio was giving her reasoning for voting for the lowest residential rate, she said the council has talked forever about rent increases in Worcester and how people can’t stay in the city.
Councilor At-Large Khrystian King said the council had to air on the side of supporting people and families and when it comes to small mom and pop businesses he said he thinks there are other ways “to try to move the dial” for those businesses.
Kiernan Dunlop is an award-winning journalist who has spent the past five years reporting in Worcester, New Bedford and Antigua and Barbuda. She’s been published in Bloomberg, USA Today, Canary Media, MassLive, and the New Bedford Standard Times, among other outlets. She can be contacted at kdunlop@theworcesterguardian.org
