The FY2023 Tax Classification hearing was held by the Finance Committee on Monday evening to establish the proportion of the tax levy raised by the residential and commercial classes of property in the City. The Council voted (21 – 2 with 2 absent) to increase the tax levy limit with a 174% shift.
The maximum amount the FY2023 tax levy can be is $407,725,614 = the sum of:
FY2022 Tax Levy Limit ($389,181,547)
+ a 2.5% Increase ($ 9,729,539)
+ New Growth ($5,589,169)
+ Debt Exclusion Debt Service ($3,225,359 – approved by voters in 2013).
Chief Financial Officer Maureen Lemieux and Newton Assessor James Shaugnessy were on hand to answer questions from the Councilors and to explain the different impacts of each of the proposed shifts. The maximum shift allowed for Newton is 175%. Historical shifts for the past five years can be seen in the table below:
| Year | Shift | Median Single Family Change | Median Commercial Change |
| 2018 | 175% | $375.42 | $508.90 |
| 2019 | 175% | $548.92 | $1,575.28 |
| 2020 | 175% | $401.51 | $614.10 |
| 2021 | 172% | $461.94 | $595.31 |
| 2022 | 175% | $553.68 | $272.67 |
Lemieux stated that the Mayor recommended that the Council support a 172% shift because of the reduced impact on commercial properties (see Summary Sheet).
| Tax Dollar Increases | 175% | 174% | 173% | 172% |
| Median Single-Family | $614.79 | $628.34 | $641.89 | $655.44 |
| Median Two-Family | $424.31 | $435.59 | $446.86 | $458.14 |
| Median Commerical | $1001.72 | $877.74 | $753.75 | $629.76 |
| Median Industrial | $739.65 | $631.86 | $524.06 | $416.27 |
Greg Reibman, President of the Charles River Regional Chamber — the only person who testified — stated that he was grateful for the Mayor’s recommended shift as being “sensitive” to the businesses and hoped that the Council would agree. “We may be coming out of the pandemic but we are not coming out of an economic crisis for our businesses,” he said, citing increased costs of utilities, wages, and interest rates.
The Council had a robust discussion, with Councilor Gentile urging his colleagues to remember that property owners may be house rich but not affluent in other ways. He said that given that a possible override is coming, he did not want to raise the residential tax rates any more than “we have to.” Some Councilors suggested a 173% shift as a compromise. Councilors Lucas and Downs supported the Mayor’s recommended shift of 172% to “save some pain on the commercial side.” Councilors Baker, Krintzman, Ryan, Laredo, Malakie, Noel, Oliver, Lipof, Kalis, Ryan, and Humphrey stated their support for the 174% shift, with Councilor Ryan stating “We don’t want to put more of a burden on those who are on the lower end of the economic spectrum.”
