City Council Approves Property Tax Rate for 2009

Taxes to Increase Despite Drop in Property Values

Story Updated 4:38PM Wednesday, December 17, 2008

– Allison Goldsberry

Despite a decline in property values this year, homeowners will see an increase in their property tax bills in 2009.

According to Chief City Assessor Ed O’Neil, the city had no choice but to raise property tax rates to maintain its services.

“It’s not just Medford, it’s everywhere,” said O’Neil, referring to the challenge most communities are facing to balance their budgets in a sluggish economy.  O’Neil said just about every community has had to raise property tax rates.

Every year O’Neil recommends the lowest residential tax rate possible and the Council adopts that rate.  Tuesday’s Council meeting was no different, and despite the Council’s hesitation to raise property taxes, they approved a residential tax rate of $10.08.

According to O’Neil, the average single family tax bill will increase by $104.06; the average condominium tax bill by $167.86; the average two-family tax bill by $110.74; the average three-family tax bill by $235.01, and the average commercial property tax bill by $1,081.81.

Last year’s property taxes rose an average of $28 for single family home owners in Medford due to efforts of city officials to help homeowners save money on their property tax bills.  The city approved a plan that held down fiscal year 2008’s residential property tax increase by raising the property tax on commercial, industrial, and personal properties. The rate increase is going to be phased out over the next three years.

Historically, the average home owner’s property tax bill goes up about $150 per year.

Home prices were down in Medford for fiscal year 2008 and fared even worse for 2009. All residential properties, except for three family homes, declined in value last year, yet the average commercial property, valued at just over $1 million, increased by $70,000. This year, values declined for all residential properties and for commercial properties as well.  According to O’Neil, the city’s residential properties lost $40 million in value.

The average single family home in Medford is valued at $372,500 for 2009, down from $400,300 in 2008; the average condo $278,400, down from $289,300; the average two-family $432,800, down from $490,500; and the average three-family $524,100, down from $553,500.  The average commercial property is valued at $1,050,100, down from $1,083,800.