Taxes Rise in Medford, No Residential Exemption

The city council approved a tax rate that will mark a $93.70 increase for the average residential taxpayer in 2011.

A residential tax rate of $11.61 per $1,000 valuated was unanimously approved by the city council on Tuesday night. The commercial, industrial and personal property tax was set at $22.98 per $1,000 valuated, up $1.29 from 2010.

The residential rate is an increase of 63 cents, up from $10.98 last year.

The increase is based on the minimum residental impact, which is the formula historically used to establish the Medford tax rate, assessor Ed O'Neil said.

, the council discussed the possiblility of switching to a residential exemption formula, where a higher residential rate would be set but homeowners who live at their property would be eligible for a percentage-based exemption.

Such a formula aims to shift the residential tax burden to non-owner occupied residential homes and high-value properties. Based on estimates from O'Neil's office, homes valued over about $470,000 - the value varies slightly depending on the formula - would see a tax increase even with the exemption.

The council ultimately steered away from making any drastic changes to the tax formula.

Councilor Frederick Dello Russo said adjusting the tax formula so quickly could startle some residents. The council hasn't taken enough time to review options, he said.

"I think it's a wise decision for us to slow down on making a change on the way we tax people in the community," Dello Russo said.

If the city were changed to a residential exemption formula, an estimated 902 properties would see their property tax increase. If such a formula were introduced, the city should notify the residents who could be impacted in advance, councilor Paul Camuso said.

The rates will be passed on to the Massachusetts Department of Revenue for review.