Byline: Patricia J. James

NORTHBORO - Selectmen last night voted to maintain a single tax rate for residential and commercial property owners, and the average homeowner should expect a $201 - or 3.8 percent - increase in their tax bills.

The Board of Assessors recommended selectmen

According to numbers presented by Assessor Arthur K. Holmes and Principal Assessor Diane O'Connor, the rate would increase from $12.39 per $1,000 valuation in fiscal 2007 to $13.28 per $1,000 valuation

In a presentation to the board, Ms. O'Connor said the fiscal 2008 market adjustments were based on sales activity of calendar year 2006. Before the market adjustments, the average single-family home valuation of $432,200 in fiscal 2007 would have increased by 0.7 percent to $435,300 for fiscal 2008, she said, meaning the average single-family home tax bill would have increased by $256 - or 4.8 percent - from $5,355 in fiscal 2007 to $5,611.

After market adjustments, however, the average single-family home valuation of $435,300 became $418,400, which Ms. O'Connor said was a 4 percent decrease. The average single-family tax bill therefore decreased by $55, to $5,556.

A split tax rate would mean a small savings for residential property owners, but a large increase for owners of commercial and industrial property, Mr. Holmes said. As in previous years, representatives of the Corridor Nine Area Chamber of Commerce and the Industrial Development Commission sent letters supporting a single tax rate.

Commercial and industrial properties make up 5.2 percent of the taxable parcels in town, but account for 20.8 percent of the total tax revenue in fiscal 2008, according to Mr. Holmes.

Mr. Holmes said the town had about $54.4 million in new growth, which equates to $673,617 new tax dollars. Out of that $54.4 million, $26.7 million in new growth - or $330,937 new tax dollars - was attributed to commercial, industrial and personal property.

After market adjustments, the total taxable value for the town for fiscal 2008 is about $2.5 billion, which is $26.1 million less than the fiscal 2007 total value, according to Ms. O'Connor.