BROOKLINE:
2006 Tax Rate:
Residential: $ 9.55
Residential Exemption Tax: $165,014.00 off assessment of at least $185,000.00
Commercial: $15.46
Three factors determine the property tax rate.
1. The property tax levy.
2. The total assessed value of the community.
3. Classification.
Property Tax Levy
The tax levy is the amount of money to be raised by the property tax. Each year the amount to be raised must be determined in accordance with Proposition 2 ½. This is computed by taking the total of the previous year's tax levy increased by 2 ½ percent, plus overrides, exclusions, and growth. Increases due to growth are based on the increased value of new developments; additions, renovations and other growth in the tax base that is not the result of an increase in value due to market forces. An example of other growth would be a formerly tax exempt property which becomes taxable. The purpose of this provision is to recognize that new development results in additional municipal costs.
An exclusion is that amount of money needed to pay the principal and interest on debt incurred for special projects approved by referendum for exclusion from Proposition 2 ½ limits. The High School renovation and the construction of a new Lincoln School are the only currant projects so excluded.
Determining the Tax Rate
The tax rate is calculated by dividing the total amount to be raised by the total assessed of all property divided by 1,000.
Tax rate = Tax Levy (or net amount to be raised)/Total Assessed Value/ 1,000
This rate is expressed in terms of dollars per 1,000. For example if a home is assessed for $350,000 and the tax rate is $14.83, the tax bill would be computed as follows:
$14.83 x ($350,000/1,000) = $5,190.50
Brookline uses a split tax rate, as do many communities, which means some of the tax burden is shifted from residential to commercial property. The Town chooses to shift the rate to the maximum allowable under the statute to the commercial/industrial/personal property class. This allows the greatest benefit to the residential properties. In FY 2000 the tax rate is $14.83 for residential and $24.52 for commercial properties. Generally, if values are rising, the tax rates will drop; conversely if values drop, the tax rates will rise.
The amount to be raised through taxation is determined by Town Meeting and the provisions of Proposition 2 1/2. The tax shift, the tax rate, and the residential exemption are voted on every year by the Board of Selectmen. In FY 2000, the residential exemption is $83,240 in value, which results in a $1,234.45 reduction in tax.
FY2004 TAX RATES
Residential $10.63
Commercial $17.26
Residential Exemption: $139,870
Residential Exemption Tax: $1,486.82
FY2003 TAX RATES
Residential $11.21
Commercial $18.18
Residential Exemption: $127,220
Residential Exemption Tax: $1,426.14
FY2002 TAX RATES
Residential $12.90
Commercial $21.07
Residential Exemption: $105,210.00
Residential Exemption Tax: $1,357.21
FY2001 TAX RATES
Residential $13.46
Commercial $22.12
Residential Exemption Value: 96,110
FY2000 TAX RATES
Residential $14.83
Commercial $24.52
Residential Exemption Value: 83,240
FY1999 TAX RATES
Residential $16.91
Commercial $27.90
Residential Exemption Value: 71,170
