11/21/2022 SELECT BOARD Minutes - Laserfiche WebLink

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0 Mashpee Select Board Minutes November 21, 2022 APPOINTMENTS & HEARINGS Tax Classification Hearing; Assessor Jose h Gibbonsm (continued) Discussion and_Aplaroval of Fiscal Year 2023 TaxxRate: The final certification of values was received on November 3, 2022. New growth was approved at $805,000. The total value of all residential properties is $7,355,506,020. Residential properties encompass 90% of the total $8,000,000,000 valuation. The remainder includes commercial, industrial and personal properties. The total count of all residential properties is 11,055. And, the average value of all residential properties is $665,356. Mr. Gibbons indicated the average single-family home value in FY2023 is $770,395. This represents a 20.10% increase over last years average value of $641,465. With no exemption in place, the FY2023 tax rate is $6.94 per $1,000 valuation. No exemption would amount to $16 per month or $196 per year. With an exemption of 5%. The FY2023 tax rate is $7.01 per $1,000 valuation. At 5% the amount of tax exempted per average parcel is $233.10. Additional 10% and 20% scenario's relative to the FY2023 Residential Exemption were also reviewed and considered. Of the 11,055 residential properties, 2,109 properties (19%) have qualified for a residential exemption if adopted by the Select Board. Currently, this is a low percentage of applications/approvals. If a residential exemption was approved at 5%, there would be overlay shortfalls. An overlay shortfall creates a deficit which would reduce available funds in the FY2024 budget. Any deficit must be address in the FY2024 recapitulation worksheet prior to the setting of the next year's tax rate. At 5%, the projected overlay shortfall for 2,000 application approvals is $466,200. It is currently estimated that 100 applications have been denied, others are deficient applications awaiting further information. The majority of homes in trust that qualified were noted to be approved. An abatement is approved for (1) property only not for multiple ownerships. It is estimated that 5,700 to 6,200 residents may qualify for the Residential Exemption. If 3,000 residents obtain the exemption the potential overlay shortfall is $699,300. State law allows abatements to be received until April l' Discussion followed with respect to the added workload within the Assessing Department and costs to administer the residential exemption. Mr. Gibbons explained that every daily function in the Assessing Office is affected. This is a labor intensive process. At minimum, a half time staff member is required to solely dedicate to this function. This is a shift from one category to another. The Town would bring in the same amount of levy.