Property Tax Alert: Massachusetts

December 2007

Effective for taxable years beginning on or after July 1, 2007, legislation is enacted that repeals a provision allowing a temporary increase in the Massachusetts property tax rate on commercial property for fiscal years 2004 through 2007.

Prior to repeal, Sec. 1, Ch. 3 (H.B. 4434), Laws 2004, was enacted to minimize rising residential tax bills in communities with dual tax classification rates for residential and commercial properties. In general, the commercial tax rate cap, normally 175% of the residential rate, rose to 200% for 2004 and then decreased as follows: (1) 197% for 2005, (2) 190% for 2006, and (3) 183% for 2007. The rates were slated to drop again for 2008 and 2009 in certain localities. The minimum residential factor (used in setting the percentage of the local tax levy to be borne by each class of property) also was adjusted for 2004 through 2007.

Please contact Rash & Associates for more information.