Home values down, property taxes up

Article from the email newsletter I get from Massachusetts Department of Revenue -

Average Single-Family Tax Bill Rose $174 or 3.8 Percent in FY12
Bob Bliss - Director of Strategic Planning and Worcester and Springfield Office Manager

The average single-family tax bill in FY12 increased $174 or 3.8 percent in FY12, an increase in line with recent average increases of less than 4 percent, according to the Municipal Data Bank. The increase in average single-family tax bills is largely a reflection of Proposition 2 1/2, which allows for an overall annual tax levy increase of 2.5 percent plus new growth.

The average value of a single-family home in Massachusetts in FY12 was $358,687, and the average property tax paid was $4,711. For FY11, the average value was $361,629, and the average property tax paid was $4,537. For FY10, the average value was $373,702 and the average property tax paid was $4,390. For FY09, the average value was $391,762 and the average property tax paid was $4,250. For FY08, the average value was $403,705 and the average property tax paid was $4,110. For FY07, the average value was $406,673 and the average property tax paid was $3,962.

The decline in the average property value of single-family homes in Massachusetts since 2007 is due to the decline in home values resulting from the 2008 banking industry crisis and the ensuing Great Recession. Since FY2007, the average value of a single-family home in Massachusetts has declined 12 percent. During that same period, the average single-family home property tax has risen 19 percent.

Despite the decline in the average single-family home property value since FY2007, for the 10 years between FY2002 and FY2012, the average value has increased 52 percent, from $236,229 in FY02 to $358,687 in FY12. In that same period, the average single-family tax bill has increased 56 percent from $3,015 in FY02 to $4,711 in FY12.

The drop in the average value of a single-family home of $2,942 from FY11 to FY12 is the smallest since values began their decline in FY2007, indicating that home values have started to stabilize.

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