Last May at the Holden Town Meeting voted to pass an annual budget of $45.6 million which was going to result in a slight increase in the property taxes which was at $18.12 per thousand. The total of the assessed valued real estate tax base, however, increased with home values going up by an average home by more then 12,000. Since the tax base increased so much , the Town of Holden, can drop their rate to $17.25 to fund the $46.5 million budget.
Lets look at an example:
- average house of 200,000 taxed at $18.12 equals $3,624 per year
- value increase to 212,000 taxed at $17.25 equals $3,657 per year
Question: Why was there was little increase? Answer: Holden is increasing their tax base. Look no further then the 100 newly constructed houses that have been built within one half mile of the Worcester line on Salisbury, Chester and Grove Streets. Not to mention the 200+ apartment rentals.
Now look at Worcester:
- values are dropping
- rates are increasing
- tax bills are going up
Next Tuesday, the Council will do their annual ritual and come up with a final rate tax rates for home-owners and businesses. In the end all tax-payers, residential and commercial, will all pay more and nobody will address the problem that the tax base in Worcester is eroding!!! It is no longer a question of the shrinking commercial tax base, but you can add residential tax base to the problem.
Why are people opting to live one mile over the line in Holden? The answer is simple
- Safety
- Schools
Lets hope over the next 12 months steps are taken to address these two problems. If not done fast, the excess tax levy will be gone and our City Council will be forced to cut the budget itself not just argue over the tax rates next November.
*** Holden has the same rate for all tax-payers.
