Worcester city council examines residential tax rates

People hoping to buy homes in the Worcester residential real estate market have many factors to consider before making offers. After looking at schools, crime rates and other demographic issues, they must also find homes that meet their personal and financial needs. One factor that should be considered in the financial evaluation of a prospective home is that home’s tax bill.

Traditionally Worcester has had a relatively low tax rate for residential properties when compared to commercial and industrial properties. As of right now residential properties are taxed at around $18 per $1,000 of valuation while non-residential properties are taxed at around $31 per $1,000 of valuation.

A meeting of the city council later this month will address possibly changing these rates. Members of the business community have long disagreed with the large difference between residential and non-residential rates, claiming that the high non-residential rates have driven some businesses out of Worcester. Last year organizations representing the real estate community and the business community agreed to a plan that brought the two rates closer together but such an agreement is not guaranteed for this year.

Tax rates are just one of the residential real estate matters that homeowners and home sellers must deal with when they endeavor to enter the real estate market. Aside from the many intrinsic factors that can influence the value of a residential property, legal and financial requirements such as taxes can also play into how quickly a home sells.

Individuals who would like to learn more about the Worcester property tax rate situation may consider attending the city council’s meeting or speaking with a real estate attorney about any changes that may come up. Lawyers in the real property field can guide home buyers and sellers through a multitude of situations that can affect the sale of residential property.

Source: Worcester Telegram, “Worcester tax-rate burdens face new scrutiny,” Nick Kotsopoulos, Nov. 29, 2013