Following a long tradition of creating a business friendly environment, the Leominster City Council voted to maintain a single tax rate during a council meeting on December 12th. The single tax rate bills both commercial property and residential property at the same rate.
“Through a single tax rate, the City of Leominster has a history of embracing growth, and supporting the business community,” said Roy Nascimento, president and CEO of the North Central Massachusetts Chamber of Commerce “That message to the business community has had a profound impact on the city – and Leominster has been rewarded with new businesses, business expansion and a solid commercial tax base.”
The city council voted unanimously to maintain a single tax rate. The average single family property tax bill will increase by $174, the average industrial property tax bill will increase by $236 and the average commercial property tax bill will increase by $5.
Background on Property Tax Classification Hearings
Each year, communities hold a Property Tax Classification Hearing to determine the rates at which residential, commercial, and industrial and personal property are taxed. There are two models for property taxes: single rate and dual rate. The single rate means that both residential properties and commercial properties are taxed at the same rate. A dual rate system means that one group – typically businesses, shoulders more of the tax burden pays a higher rate of taxes based on a property’s assessed value.
A single rate tax system has come to be the best model for business friendly communities. Many argue that a higher tax rate for commercial properties does not create a business friendly environment.