By Julie McCay Turner
The Selectmen set Bedford’s FY18 tax rate classification in a public hearing during their meeting on Monday evening, February 12. Ron Cordes led them through the financial model that the Assessors used to calculate the new rates during Bedford’s recently finalized Triennial Revaluation Year.
Cordes reported increases in Bedford’s overall value, its residential property value, and its commercial/industrial/personal property (CIP).
- Overall value: Bedford’s FY2018 valuation for all of its residential and commercial/industrial/personal property (CIP) is $3,685,839,501 compared to $3,424,494,825 in FY2017 — an increase of 5.4%.
- Residential value: Residential property rose by 4.5%. New residential growth totaled $32,018,122.
- CIP value: The 28% CIP increase caught the attention of the MA Department of Revenue, adding some additional delay in getting Bedford’s final numbers certified. The CIP increase is due to the number of “old, tired” buildings that have been renovated to accommodate high tech companies relocating to Bedford. Cordes praised the efforts of Bedford’s Economic Development Coordinator Alyssa Sandoval and hoped that more such companies follow, like “birds of a feather” to sustain CIP growth in the coming years. CIP’s new growth for 2018 comes in three parts: Commercial, $2,701,864; Industrial, 2,093,724; and Personal property, $39,797,370.
- Excess Levy Capacity: The amount Bedford could raise in taxes (although the Town does not choose to tax to its full capacity) rose $3,468,953 in FY2017 to $5,567,449 for FY2018.
Balance between residential and CIP levies
The balance between residential and CIP levies has shifted since last year. Bedford’s total levy in FY17 was $62,698,078, of which 64.5% was residential and 35.5% was CIP. For FY2018, residential levy accounted for just 61.9% of the total, with CIP rising to 38.1%. Although the Town retains a classification for Open Space properties, none are listed in that category.
Bedford’s effective tax rates drop in FY2018
The Town again qualifies for a 175% shift that lowers its effective tax rate. Without the shift, the FY2018 uniform tax rate would be $17.36 per $1,000 of valuation, compared to $18.31 in FY2017.
- Residential rate for FY2018: The adjusted residential rate will be $13.73 per $1,000 for FY2018, instead of $14.81 in FY2017.
- CIP rate for FY2018: The adjusted CIP rate will be $30.38 per $1,000 for FY2018, instead of $32.04 in FY2017.
Residential Property Values
The Assessors reported that they reviewed the assessments for “full and fair cash value” as of January 1 using data from sales between July 1, 2015, and June 30, 2017, with additional adjustments “by neighborhood, by building style, and by grade, and for condominiums by complex.”
The average value of a single-family residential property rose from$ 642,000 in FY17 to $674,300 in FY18, in part because of less expensive teardowns that have been replaced by costly new homes.
Before the Classification hearing ended, resident Robert Kalantari questioned the disparity between the assessed valuation and recent sales of commercial/industrial properties where the sales values were substantially higher than the assessment. Assessor Cordes noted that there are often intangibles included in the sale of such properties, and there are strict DOR guidelines for assessing commercial and industrial properties that are independent of sales values.
Tax Bills
Bedford’s fourth quarter tax bills will be mailed prior to April 1, with payment due on May 1, 2018.
Looking Ahead
Bedford’s Assessors have requested a departmental audit by the Massachusetts Department of Revenue and have begun a rigorous internal assessment. The board will present a report to Annual Town Meeting, which begins on Monday, March 26.
Click this link to read previously published information on the tax rate setting process
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