By Adam Swift
The city council adopted a minimum residential tax factor on Monday night, establishing a split tax rate between residential and commercial properties and setting the tax rate for Fiscal Year 2025.
There was a brief public hearing, where Board of Assessors Chair Dana Brangiforte recommended the council accept a minimum residential factor of .879287.
“Doing so will allow us to create a split tax rate and shift the burden from the residential taxpayer to the commercial tax rate,” said Brangiforte.
With the acceptance of the split tax rate, it is expected that the FY25 property tax rate for personal property will be $9.07 per $1,000 of valuation, while the commercial rate would be set at $18.05.
Both of those figures are a slight decrease from the FY24 tax rates of $9.10 for personal property and $18.05 for commercial property.
However, due to an increase in property valuation, the average tax bills are expected to increase.
The average tax bill for a single-family homeowner will increase $199 per year, or 3.82 percent. The average valuation of a single family home in Revere increased from $571,044 in FY24 to $599,484 in FY25.
The yearly tax bill for a single-family house valued at $599,484 would be $5,401, according to the assessor’s office.
Two-family homes will see an increase of just under two percent in the tax bill, while the average three-family home will see a jump of 4.52 percent.
The average tax bill for condominiums will increase by 4.28 percent, according to the assessor’s office, while the increase for the average apartment building stands at 4.67 percent.
While there is a large fluctuation in the values of commercial properties, the average tax bill for a commercial property is due to increase 8.57 percent in FY25.
The average value of a commercial property in Revere increased from $1,676,047 in FY24 to $1,824,701. The annual tax bill for a commercial property valued at that figure would be $32,936.
With those tax rates and the new growth in the city, the levy limit for FY25 jumps from just under $114 million in FY24 to just over $120 million.
The levy limit is the maximum amount to be raised by real estate and personal property taxes. The increase comes from adding the 2.5 percent that is allowed to be raised in taxes under Proposition 2-½ added to the taxes that can be raised through new growth.
The 2-½ percent increase accounts for a $2.8 million increase in the levy limit, while new growth accounts for $3.7 million.
