By MARK SARDELLA
WAKEFIELD — Residential property owners will see their taxes go up by about 4.5 percent this year, while the average commercial property owner will get a 1.26 percent tax hike. The new property tax rates were set by the Town Council at the annual tax classification hearing this week.
Director of Assessments Victor Santaniello was on hand to present the numbers.
For purposes of setting the FY 2025 tax rate, the average single-family home in Wakefield is valued at $782,300 (up 3.4 percent from last year). The average commercial/industrial property is assessed at $1,637,300 (up 1.5 percent).
The average single-family homeowner will pay $8,894 in taxes this year – $384 more than last year. The average commercial property tax bill will amount to $35,644, an increase of $642.
The Town Council once again selected the maximum residential shift of 1.75. This results in residential homeowners bearing the lowest possible share of the tax burden by shifting more of the burden to commercial properties. The shift yields a residential tax rate of $11.36 per $1,000 of assessed value and a commercial/industrial tax rate of $21.77 per $1,000 of assessed value.
Santaniello noted that FY 2025 is the eleventh year of the full Debt Exclusion for the Galvin Middle School. The Debt Exclusion adds $3,029,606 to the town’s FY 2025 total tax levy. It adds $0.36 to the residential tax rate or $282 to the Average single-family home Tax Bill. It adds $0.69 to the commercial tax rate or $1,129 to the average commercial tax bill. Santaniello noted that included in this debt exclusion amount is $556,608 for net costs associated with Wakefield Memorial High School.
He noted that with the exception of Saugus (which has the US Route 1 business district), compared to surrounding communities, residential properties in Wakefield and Stoneham realize the lowest possible share of the tax burden with the maximum allowable shift of 1.75.
Santaniello also talked about the property tax discount that the town has been offering to senior citizens. In the fifth year of offering the discount, 267 applications were received, of which 256 were approved. The median amount granted was $2,400. The maximum amount granted was $2,590. The minimum was $38. The average discount amount was $1,919. The total of all senior tax discounts was $502,731.
Santaniello explained that this senior exemption adds $0.08 to the residential tax rate, which translates into an increase of $60 on the average single family tax bill to help local seniors continue to remain independent and age in place. Those who received the maximum amount of $2,590 will see an approximate 30 percent reduction in real estate taxes.
Town Councilor Edward Dombroski acknowledged shifting some of the tax burden away from the residential taxpayers, but noted that this calculation is based on the assumption that the town is taxing to the full 2.5 percent allowed by law. He said that he was troubled by the fact that the town is not doing all it can to keep taxes low and is taxing to the maximum amount.
Chairman Michael McLane pointed out that a large chunk of the town’s budget is in personnel costs and collective bargaining contracts. He said there was no point in discussion zero-based budgeting as long as they remain willing to approve these contracts.
But Dombroski noted that in recent years the town has continued to add full-time employees, which come with salaries and benefits that end up becoming fixed costs.
“We are on a path to unsustainability,” he said.
In addition to setting the tax rate, the Town Council took several other related votes.
They voted not to offer a 25 percent open space discount. Santaniello explained that the Town has never voted a discount for open space since no properties in town have been identified which fulfill this section of the law.
The Town Council also voted not to offer a Residential Exemption of up to 35 percent of average residential value. Santaniello explained that only a handful of communities offer this exemption, including Boston, Cambridge, Chelsea and Brookline. The residential tax rate would rise substantially before any such discount, he added, and approximately 30 percent of homes would shoulder the burden.
The Town Council also declined to offer a small commercial exemption of up to 10 percent of the property valuation for commercial properties. Santaniello explained that the Assessing Department is unaware of any business in town meeting the legal requirements for this exemption.
When the hearing was opened to the public, only one resident spoke. Scot McCauley of Walden Road asked about the possibility of more local commercial properties going residential as a result of the new state law requiring MBTA communities to create zones where multifamily housing is allowed as of right.
Santaniello said that he didn’t anticipate the new law having much of an impact in that regard.
