The average single-family homeowner can expect to pay approximately $365 more in property taxes annually as city councilors Tuesday voted 6-4 to maintain the current split of residential property taxes and those of commercial properties which pay 65% more.
Though the Council opted to retain the current split rate, taxes will increase for both homeowners and businesses on average, as residential values outpaced commercial and industrial property values. Average commercial taxes will increase $1,279 and average industrial taxes will increase $1,733.
Greater Haverhill Chamber of Commerce interim President Kate Martin said that four housing developments under construction have replaced commercial properties, noting that 89% of the city’s tax base comprises residential properties. This year, the city’s share of commercial properties decreased compared to last year.
“The percentage of commercial properties is decreasing and yet these owners are being asked to bear more of the tax burden. We cannot continue to raise the commercial tax while neighboring communities offer more attractive rates for businesses to open and thrive,” she said.
Jeffrey G. Linehan, a former Haverhill resident and business owner who now lives in Boxford, also argued the commercial tax rate should not change and must stay competitive to attract businesses.
“Remember, having more business in Haverhill is a good thing because businesses are not our enemy; businesses in most cases do not affect the schools, trash pickup and snow plowing. Having businesses in Haverhill is a gift for the taxpayer,” he said.
Councilors were presented several options, including raising the share businesses and commercial property owners pay to 70% or 75% more. Mayor Melinda E. Barrett encouraged the Council to support raising the proportion to a compromise 70%.
“I do know that residents have been unduly affected. They don’t have the resources to combat inflation. Seniors, especially those on fixed incomes,” she said.
Council Vice President Timothy J. Jordan cautioned that raising rates could discourage businesses from opening in the city. He pointed to a statistic that only 5,000 of the city’s 67,000 residents both live and work in the city and stressed that local businesses like Haverhill Bank and Pentucket Bank provide valuable philanthropy to area nonprofits.
“That’s the real way we get relief for our residents, is by increasing the number of businesses that are here,” he said.
He later added, “The businesses, in addition to what they’re doing helping relieve the burden off of our taxpayers, they’re providing jobs, critical jobs and that statistic is alarming to me.”
Councilor John A. Mitchitson echoed Jordan’s stance, saying voting for a “relatively small” increase is a “very temporary band-aid.”
“A lot of them [businesses] are taking very significant hits, closing down small businesses in the city as it was mentioned earlier. My rationale is that businesses provide jobs at all levels and that’s your best social program by far. It provides internships for high school, vocational tech and high school students and as Councilor Jordan mentioned, businesses provide essential funding for nonprofits,” he said.
Councilor Shaun P. Toohey said he is not comfortable with the current rate, citing rising costs due to the Dr. Albert B. Consentino School debt exclusion, increased water fees and inflationary pressures on gas and groceries.
“At this juncture, the inflationary costs over the last several years have been staggering to say the least. We talk about spending money and that these businesses are the backbone. They are, I own a small business. But, at the end of the day, if the residents can’t afford to go to the restaurant because of the increase in cost, there are not going to be any businesses,” he said.
Councilor Ralph T. Basilere said he spoke with several of his neighbors, who told him they are feeling “under strain.”
“These are people who are working for a living and people who have worked for a living and are on public pensions,” he said. “It’s pretty much representative of the neighbors I am a liaison for which are the working class which are feeling some of the pressures.”
Jordan motioned for keeping the current rate, with Mitchitson backing the move.
Jordan and Mitchitson were joined by councilors Devan M. Ferreira, Melissa J. Lewandowski, Michael S. McGonagle and Colin F. LePage in voting to retain the current rate, while Basiliere, Toohey, Catherine P. Rogers and Council President Thomas J. Sullivan cast the dissenting votes. Councilor Katrina Hobbs-Everett was absent.