City Council Approves Property Tax Rate
Story Updated 5:07PM Wednesday, December 19, 2012
– Allison Goldsberry
On Tuesday night the Medford City Council accepted the City Assessors’ recommendation for property tax rates for fiscal year 2013. The new residential tax rate is $12.36, compared to $12.03 for last year. The 2013 commercial, industrial, and person property tax rate is $24.39, up from $23.72 last year.
The rate is determined by the need to fund the city’s $139,610,534 budget, which was approved in June, and is affected by property values. In Medford, like many cities, residential and commercial properties are taxed at different rates, with commercial property owners paying a higher rate.
It’s conceivable for property values to decrease yet have taxes increase due to a higher rate needed to fund the city’s budget. Despite fluctuations in property values, taxes increase each year to maintain city services. Historically, the average home owner’s property tax increases about $150 per year.
According to Chief City Assessor Ed O’Neil, the overall value of residential properties in the city is around $5.6 billion. O’Neil said the city isn’t taxing the maximum amount allowed under state law and is about $200,000 below that cap.
Despite expressing concern over approving an increase in property taxes, which happens typically every year, the Council unanimously voted in favor of the proposed 2013 minimum residential factor.
Since the property tax rate has to support the approved budget, any change made to provide relief to any population, such as owner-occupied homes, would result in higher taxes for another group. Alternatively, attempting to lower rates for everyone would require cutting the budget, which was approved last June and is currently in place.
“There is no free lunch, the pie’s the same,” said City Council President Robert Maiocco.
The following information is based upon the average property value in each category. Property tax bills will be larger or smaller depending upon the value of individual properties.
Average Property Tax Bill Increase for 2013
Single Family- $128.24 (compared to $155.78 last year)
2-Family- $165.76 (compared to $178.79 last year)
3-Family- $193.57 (compared to $176.55 last year)
Condo- $73.87 (compared to $136.45 last year)
Commercial Property- $883.11 (compared to $81.53 last year)
Average 2013 Property Tax Bill
Single Family- $4,307.46
2-Family- $4,721.52
3-Family- $5,583.01
Condo- $3,217.31
Commercial Property- $24,185.12
Average Value Single Family Home
2013- $348,500
2012- $347,400
2011- $346,550
2010- $357,900
2009- $372,500
2008- $400,300
2007- $407,500
Average Value 2-Family Home
2013- $382,000
2012- $378,700
2011- $377,000
2010- $387,600
2009- $432,800
2008- $490,500
2007- $501,800
Average Value 3-Family Home
2013- $451,700
2012- $448,000
2011- $449,000
2010- $465,500
2009- $524,100
2008- $553,500
2007- $552,800
Average Value Condo
2013- $263,100
2012- $261,300
2011- $259,000
2010- $263,900
2009- $278,400
2008- $289,300
2007- $297,100
Average Value Commercial Property
2013- $991,600
2012- $982,800
2011- $1,010,900
2010- $1,056,800
2009- $1,050,100
2008- $1,083,800
Source: City of Medford Assessor