Beverly City Council Approves Maximum Tax Shift Burden To Businesses

BEVERLY, MA — The Beverly City Council this week approved a maximum tax shift toward the city's businesses and commercial properties that still results in a tax hike of more than $400 per year for the average single-family homeowner amid the continued rise in property values compared to commercial and industrial values.

The tax shift of 1.75:1 — essentially meaning businesses pay 175 percent the rate of residents — is the maximum allowed by the state and continues a five-year trend in the city seeking the maximum tax burden shift. In order to maintain property tax costs at last year's levels among residents, a factor of higher than 1.75 would be necessary, which is not allowed under state law.

Beverly Finance Director Bryant Ayles said the shift — which pays for the budget approved last spring — will result in a 4.3 percent tax increase for single-family homeowners, who now pay an average tax bill of $8,833.89 each year.

The average single-family homeowner tax bill will rise $406.80 under the shift.

"The shift of 1.75 is something we have traditionally done here in Beverly as well as many other communities," Ayles said. "It's given as much relief, if you will, to the residential class, which is certainly the highest percentage of property taxation for the city of Beverly. It's the most you can do."

Tax rates in the city actually go down with the new rates — but the continued appreciation of home values still translates to a higher tax bill.

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. X/Twitter: @Scott_Souza.)