Selectmen to Set FY17 Tax Rate on Monday
The Board of Selectmen will hold the annual Tax Classification Hearing during the meeting on Monday, November 28.
This meeting will be held at 7 p.m. in the main hearing room at Town Hall.
During the hearing the board will set the property tax rate for Fiscal Year 2017 (FY17). Burlington has a split tax rate, meaning that residents pay one amount and commercial, industrial and personal property owners, effectively meaning businesses in town, pay another rate. The big decision for the board is how to split the tax burden between residents and businesses.
The first major factor is setting the tax rates is to hit necessary tax levy to keep services, pay town employees and make payments on debt, among other expenses. This amount normally goes up each year. In FY16 the tax levy was just over $99.3 million. The tax levy for next year will be around $102.9 million based on the report from the assessor’s office. This levy is approximately $9 million under the allowed levy limit.
The second thing that comes into play is the total assessed value of the residential and commercial properties in town. Property tax rates are set as the amount a homeowner or business must pay per $1,000 of assessed value. This year the residential value went up 6.1 percent and commercial properties went up 4.8 percent.
Finally, the board must decide on the split between residents and C.I.P. In recent years the split has been about 40 percent for residential properties and 60 percent for commercial properties, meaning that though the total value of residential properties in town far exceeds commercial properties ($3.6 billion to $2.2 billion), businesses carry the majority of the tax burden.