The Select Board will hold a public meeting Wednesday night to discuss the “various options available to the town” regarding the “classification of real and personal property,” even though state law requires this hearing to occur before the board’s vote — a vote the board already took on December 3 and will now need to redo.
Massachusetts General Law Chapter 40, Section 56 requires the Select Board “to hold a public hearing each year prior to setting the tax rate.” While classification does not change the total levy, it does determine how much of the burden is carried by residential versus commercial properties. At its December 3 meeting, the Select Board unanimously approved the maximum shift. The agenda for that meeting, however, did not accurately represent a hearing, Town Administrator Nick Connors said.
“This is to make sure we’re doing it the correct way,” Connors said. “We’re doing the hearing and then the Select Board will vote.”
At the December 3 meeting, Director of Assessing Paul Plouffe reported that the total value of taxable property in Swampscott is “a little over $5 billion.” The tax levy is set at $63,598,783. With those figures, the single tax rate would have been $12.66 per thousand, but with the maximum shift onto commercial properties, the residential rate becomes $12 per thousand, an increase from $11.47, Plouffe said.
“Swampscott has historically voted to maximize the shift to 175%,” Plouffe said.
This shift is what the Select Board approved on December 3, even though the meeting on Wednesday, December 10 will discuss the potential for doing so.
Each year, municipal officials across the Commonwealth must make decisions about property taxes for their communities. Among these responsibilities is a classification hearing, which Mass.gov describes as “a formal step in the annual tax-setting process that allows the local selectboard…to determine whether property taxes will be shifted between residential, commercial, industrial and personal property classes.”
“The classification hearing is not only a legal requirement but also a critical policy tool,” the site reads. “It ensures transparency, public engagement, and fairness in the distribution of local tax obligations.”
Options for how the levy is shared among property owners include:
- Shift: Determines how much of the levy is paid by residents versus the commercial, industrial, and personal property classes
- Open space discount: Reduces the levy paid by open space to no less than 75% of its full and fair cash value, shifting those taxes solely onto the residential class and resulting in a higher residential rate
- Residential exemption: Lowers taxable value for qualified owner-occupied residential properties, shifting more of the burden to non–owner occupied and higher-valued homes
- Small commercial exemption: Grants an exemption to eligible small businesses, shifting the burden within the commercial class to larger businesses
“These decisions are made during the classification hearing and are voted on annually by the local selectboard,” the website reads.
During the hearing, the assessor is expected to outline classification options, provide context on property values, and present estimated tax impacts under different scenarios. Members of the public are also given a chance to ask questions or raise concerns.
Only after this process may the Select Board vote on whether to adopt a shift or implement any exemptions.
“Classification hearings are not just procedural – they represent significant policy decisions with real impacts on residents and businesses,” Mass.gov writes. “The classification hearing is a cornerstone of municipal tax policy in Massachusetts.”
