Executive Summary Fiscal Year 2025

What happened

📁 Placed on file — this was an informative communication; there were no decisions to make. (Placed on file cma 2024 #220 in city council october 7, 2024 to the honorable, the city council: in the attached document, i am requesting that the city council take the votes necessary to seek approval from the massachusetts department of revenue of the tax rate for fy · Oct 7, 2024)

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The document From City Manager Yi-An Huang · 2 pages

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Responsible and responsive fiscal policies and practices are key to addressing the challenge of balancing expansion and investment in new programs and initiatives, while also minimizing the impact of increases on taxpayers. For FY25, the total assessed value of taxable property is $76.2 billion, a $357 million increase over FY24. This is a less than 1% increase over the FY24 values.

The much smaller increase than we have seen in past fiscal years indicates the softening of the commercial and industrial markets and the sluggish residential market with little inventory and high interest rates. For FY25, the residential share of the levy has held steady at 33.8%. This is the same as in FY24. The commercial share of the levy also remains at 66.2%. This year both the residential and commercial property tax rates will increase. The residential tax rate has increased from $5.92 to $6.35.

The commercial rate has also increased from $10.46 to $11.52. For FY25, we are seeing relatively flat appreciation in the residential market and downward trends in the commercial and industrial markets.

Residential Exemptions

Tax Savings

The residential exemption reduces the property tax bill by excluding a portion of the residential property value from taxation for qualified homeowners.

FY25 New Growth

Tax Levy

FY25 — Values and New Growth

FY25 values are as of 1/1/2024 and based on market activity that occurred during calendar year 2023. Most residential classes saw fairly flat values. Higher interest rates and low inventory held sale price appreciation in check. Class A, B and C office buildings and lab sectors are showing the effects of higher vacancy rates and higher supply in the lab development pipeline. Additionally, the impact of hybrid work continues as companies analyze square footage needs.

The new growth for FY25 was buoyed by the Volpe site. MIT has completed the new US General Services Administration building, which is a 400,000 sqft state of the art research facility. The remaining 10 acres of the site, transferred to MIT on January 26th for $750 million. This moves the exempt Federal land to a taxable, mixed use development. This will allow for continued growth for the next 5-10 years for this Kendall Square site. by class

Comparison of Residential Percent of Tax Levy Paid

Municipality Residential Percentage of

Property Tax

Cmrcl/Ind/PP Percentage of

Property Taxes

Res Tax Rate

Commercial Rate

📊 From here the report is project tables and figures — which don’t survive text extraction faithfully. Read them in the original PDF.