Selectmen Vote for Tax Classification Factor to Remain at 1.65 Percent

The Westwood Board of Selectmen Monday unanimously voted to uphold a recommendation by the Board of Assessors to have the tax classification factor remain at 1.65 percent.

“Our recommendation is to keep the tax factor as it is,” said Assessor Mark Murphy during the annual tax classification factor hearing. “It gives us some room to maneuver in future years.”

Murphy said that shifting on the commercial value side may save money on the residential side, but it may be the wrong idea to send. He explained that the idea is to remain competitive commercially.

For Fiscal Year 2012, the values are based on transactions occurring in 2010. Therefore, any recent improvements or declines in commercial or residential market would not necessarily be reflected. Murphy noted that overall values increased less than 1 percent for both commercial and residential areas.

Residential had a slight increase, while commercial had slight decrease, both less than 1 percent. Murphy said that residential values on the lower end have increased slightly in value, while middle and upper tiers have remained relatively flat. He said that this is not a bad thing because it means that people still want to move to Westwood.

Commercial values are at 13.33 percent, which is a slight decline from last year at 13.4 percent. Murphy noted that FY '09 was 14.4 percent and historically values have been higher.

“I think every year I have been here to talk about this, we have talked about our concern for the low values,” said Murphy.

He added, “This is something everyone recognizes and would like to improve.”

Murphy said that a main goal is to continue to attract commercial properties. Commercial values will pay approximately 22 percent of total taxes with this. According to Murphy, an important thing to know is that 20 years ago, commercial values represented 25 percent of the total value of the town, compared to the current 13.3 percent.

“I feel like it’s déjà vu all over again,” Selectmen Clerk Nancy Hyde said, while also noting that Westwood has been in a similar situation for several consecutive years.

Hyde acknowledged that minor tweaks don’t really improve the situation for residential tax bills. She said that they do not want to burden commercial aspects or increase impact on residential aspects.

Hyde said that it has been this way for the past two years, noting that Westwood’s issue has always been that they do not have a lot of commercial tax base, which is something she hopes to see improvement on in the future.

Chairman Patrick Ahearn and Selectman Philip Shapiro agreed with Hyde. Ahearn explained that it would provide a cushion and Shapiro said that there is stability for business owners. Shapiro said that while the rate has remained at 1.65 percent, the decision makes sense.

“I think this is good and, as the chairman says, it gives us a cushion should something change dramatically,” said Shapiro.

The Board of Selectmen will meet again on Dec. 12.