Watertown homeowners are set to experience a notable decrease in their property tax bills for Fiscal Year 2024, thanks to legislative changes and a strategic shift in tax burden from residential to commercial properties. This reduction marks a significant moment for the local community, as such adjustments are relatively rare and present a welcome relief for many.
The primary catalyst for the reduction in property taxes was the passing of special Home Rule legislation. This legislation allows for a more significant portion of the tax burden to be shifted from residential to commercial, industrial, and personal (CIP) properties. Consequently, the tax rate on residential properties has decreased from $13.58 per $1,000 of assessed value in Fiscal Year 2023 to $11.70 in Fiscal Year 2024. This adjustment translates into substantial savings for homeowners, with the average tax bill on a property with no residential exemption dropping from $10,900 to $9,800. Those benefiting from the residential exemption will see their average bill decrease from $7,307 to $6,587.
The reduction was facilitated by a concerted effort from Watertown's elected officials and was made possible by the increase in the value of commercial properties in the area. This increase allowed the city to adjust the proportion of tax contributions between residential and commercial property owners, aligning with the city's historical practice of shifting a higher tax burden onto commercial properties. The total value of properties in Watertown has significantly increased, with commercial property values rising by about $1.5 billion over the past five years.
Looking ahead, this tax adjustment not only offers immediate financial relief to homeowners but also reflects the city's ongoing commitment to balancing the tax burden in a way that supports both residential and commercial growth. This strategic approach helps ensure that Watertown remains an attractive place to live and do business, contributing to the city's overall prosperity and vibrancy.
For homeowners, this decrease in property taxes means more disposable income that could be redirected towards home improvements, savings, or other expenditures that contribute to the local economy. For the community, it represents a thoughtful approach to fiscal policy that seeks to balance the needs of residents with the desire to foster a healthy commercial sector.
As Watertown continues to evolve, such adjustments are critical in ensuring that the city remains a dynamic and desirable place to call home. The collaborative effort between local government and state legislators highlights the potential for impactful policy changes that directly benefit constituents, setting a precedent for future initiatives aimed at enhancing community welfare.
