MARBLEHEAD — The value of your property is dropping, but your real estate tax is going up. Isn't it always the way?
The Board of Assessors presented the proposed tax rate to selectmen recently, with Assessor Michael Tumulty noting that the median tax bill is rising by 5 percent. In other words, the homeowner whose property value falls precisely in the middle — it's valued at $512,000 — will see their bill rise from $4,665 in fiscal year 2009 to $4,900 next year.
The median home value in 2009 was pegged at $519,000. The value has been falling, but not as fast as some might think.
The numbers are based on surveys from 2008.
"Every year, we do the update," Tumulty told the board, explaining that the law requires assessments every three years. Property values "change all the time," he said.
Speaking afterward, Selectman Harry Christensen praised the presentation and called it "a positive picture." While the town's finances remain in good shape, he couldn't rule out dramatic action if the state should impose severe cuts in local aid.
Despite the collapse of the housing market, Tumulty's figures indicate that Marbleheaders held their own.
The value of the entire town's taxable real estate dropped by only 1.9 percent, with the town's total value going from more than $5.3 billion to $5.2 billion. Moreover, he pointed out, much of what's been lost over the last two years was what went up in a rapid spike in values through 2007.
"It's been a soft landing regarding the median family (home) assessment," Tumulty said.
Those who lost the most were at the lower end of the market, he said. The number of homes in town worth less than $350,000 has now increased dramatically, he added. At one point, it was virtually impossible to buy a home for that price in Marblehead.
The drop in home values does not preclude an increase in taxes, because under Proposition 21âÑ2 cities and towns are permitted to increase the tax levy by 21âÑ2 percent each year. After adding on taxes imposed due to overrides, Marblehead is in line to become a $50 million town in 2010, with a maximum allowable tax levy of more than $50.2 million
The precise numbers won't be voted on until next year. The fiscal year starts in July.
Meanwhile, the board voted unanimously — with only Jackie Belf-Becker, Judy Jacobi and Harry Christensen present — to tax all real estate property at the same rate as usual. With a small number of commercial properties and a dearth of open spaces, officials have long held it unproductive to have a different tax rate for businesses and residences.
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