Property taxes 

Often I am asked about Greenfield’s property tax rate and why it is one of the highest in Massachusetts. Here is a quick explanation. Tax rate and tax bill are not the same thing. As we have seen this year, the rate dropped. One big reason for this drop is because home values increased. The increases in home values are due to a hot real estate market leading to higher sale prices (values). However, Greenfield’s average tax bill, what the average homeowner pays, falls about in the middle of the entire state. The reason the rate is high is because our values, compared to the rest of the state, are low. We also do not have a split tax rate like many cities. A split rate charges businesses a higher rate than homeowners. This lowers the rate to homeowners.

The average home in Greenfield is worth around $259,000 and the tax rate is $19.65. This homeowner pays $5,089.35 in property taxes. The average home in Deerfield is approximately $359,000 and the rate is $14.97. The average Deerfield homeowner pays $5,374.23 in property taxes. Deerfield has a lower rate but the average homeowner pays more in property taxes. The state average tax bill in $7,059.

So while Greenfield’s tax rate is higher than most in Massachusetts the average bill is not. The simple explanation is lower values = higher rates. Higher values = lower rates.

I point this information out only to show the facts in the numbers. This is not a statement for or against the city’s budget, the wants vs. needs of our community, or the ability of some taxpayers to pay even the average bill. The property tax system in Massachusetts, and really across the county, is flawed as it does not take into consideration the payer and only takes into account the fluctuation of market values. A much bigger issue than we can fix in Greenfield.

Tim Farrell, president of Gilmore & Farrell Insurance Agency Inc.

Greenfield

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