By Joe Ruvido

The Board of Aldermen unanimously approved the property classification and residential exemption recommended by the City Assessor at their meeting on Tuesday November 22.

The Board heard a presentation by Marc Levya, Chief Assessor or Somerville. Per Massachusetts Law, commercial and residential property values and the processes that determine those values need to be reassessed every three years. The city uses these assessments to calculate the projected amount of property taxes they will collect to finance the city budget. The city cannot run a fiscal deficit so the valuations are an important step in financing city operations.

The Board of Aldermen cannot control the valuation outcomes, but they can change the property classifications and exemptions that apply to residential properties. The classification of property approved by the board allows Somerville to tax the commercial sector at the highest possible rate relative to residential properties under Massachusetts law. The exemption is the amount that can be subtracted from a property’s value to reduce the taxable base of that property. Exemptions can only be claimed by owner-occupants, a tax rule enacted to discourage absentee landlordism.

Valuations are calculated using the average value of real estate sales in city neighborhoods. They are measured in dollars per square foot. In keeping with trends in the Boston Metro Area, most valuations have increased this year. The biggest increases were seen in East Somerville and Winter Hill where values jumped an average of 23 percent. According to the presentation, about 68 percent of homeowners will see a “light to moderate increase” in property taxes as a result of the revaluations.

The Board approved a residential property tax exemption of $235,399 for fiscal year 2017. This will save the average homeowner an estimated $2,747.11 if properties were to be taxed at their full valuation. The proposed tax rates are $11.67 per $1,000 dollars of value for a residential property and $18.80 for a commercial property. The exemption and the rates are subject to approval by the Department of Revenue.

The Aldermen cannot set the rates at which properties are levied. Instead, according to Alderman President William White, aldermen can do two things: set the residential exemption amount used for property tax calculations and the classification of commercial property.

White made the point that although the increase in assessments is frustrating, the main factor driving the need for that revenue is increased city spending. Valuations simply determine the percentage of residential property taxes relative to that.

Alderman Lafuente concurred saying, “The numbers are what they are. It’s all about the budget. We need safeguard in place regarding how we go forward with developers.” One vehicle for enforcing such safeguards could be a Community Benefits Agreement for the big projects that the city is proposing. CBAs will be discussed in greater detail at Tuesday’s meeting of the Land Use Committee.

After the Assessor’s meeting time was spent on committee reports. Of note was the approval of $50,000 for a city utility vehicle used to repair road signs. The current vehicle is unsafe and cannot pass inspection.

Rodent control issues were also discussed, in particular the use of dry ice to suffocate large rodent populations in areas of the city. Development tends to exacerbate rodent issues as trenching, dredging, and digging uproot rodent populations.

The meeting began with the re-election of Alderman-at-Large White as Board President, and Ward 7 Alderman Katjana Ballantyne as Vice President. The Board meets on Thursday for further discussion on the Green Line Extension Project.