Stockbridge — There is good news and not-so-good news for Stockbridge residents following the town’s October 12 Select Board meeting. Along with unanimously approving a single tax rate that applies equally to commercial, industrial, and personal properties as well as individual homeowners, the group proposed an estimated decrease of 77 cents from the 2023 tax rate of $8.14 per $1,000 valuation to a 2024 tax rate of $7.37 per $1,000 valuation.
However, some homeowners may not see a lower property tax bill if their property valuation went up year over year as the bill would reflect a greater taxable value for the tract.
Town Administrator Michael Canales estimated that 984 property owners will see a decrease in their tax bills from last year while about 550 owners will see a tax bill increase of less than $100, with the remaining about 400 properties eyeing a larger tax bill increase.
The town must raise a certain amount by tax levy in order to function, Canales said, and that estimated tax levy for the coming year is $9,283,318. The tally is based off a Fiscal 2024-certified total value of $1,259,608,957 for all properties in Stockbridge, including residential properties valued at $1,139,482,820; commercial properties valued at $61,093,100; industrial properties valued at $6,567,700; and personal property valued at $52,465,337, said Tax Assessor Michael Blay, who presented the tax classification information to the Select Board.
Roughly 90 percent of the tax levy in the town emanates from residential properties, with 10 percent of the tax levy from commercial, personal, and industrial properties, a statistic that has applied for several years, he said.
After denying a residential tax exemption that may have provided a respite for some of the town’s qualifying 660 principal residential homeowners while defraying to other taxpayers to pick up the shortfall in funds needed to run the Stockbridge government for the coming year, the Select Board unanimously approved a tax exemption for qualifying small businesses. Out of the town’s 36 commercial properties, the exemption only applies to eight business properties that meet its standards: no more than 10 employees and an assessed value of no greater than $1 million. That exemption—which can be up to 10 percent of the assessed value of each eligible property—shifts the tax burden from those smaller businesses to the larger commercial and industrial entities, businesses whose tax must be readjusted to account for the shortfall from the exemption. For those remaining non-exempt businesses and industrial uses, the 2024 tax rate is estimated to be $7.43 per $1,000 valuation, a six-cent increase within that commercial class, Blay said. Those entities were taxed at a rate of $8.14 per $1,000 valuation for 2023. “Overall, they’re still seeing a significant decrease from the previous year,” Canales said.
Member Patrick White spoke in favor of the group approving both the residential and small business tax exemptions, with the residential tax exemption—ranging from 20 percent to 35 percent—as a means for “local jobs to be held by local folks, especially around public safety and infrastructure” as the average Stockbridge home is now valued at $671,000, beyond the reach of many community employees.
Regarding the small business exemption, Blay said the Board of Tax Assessors wasn’t in favor of offering the benefit because the number of qualifying businesses in Stockbridge was minimal, their valuations haven’t changed much over the years, and the reduction in taxes doesn’t go back to the small business but only benefits the owner of the commercial property.
However, White said the standard commercial lease passes on the tax debt to the tenants who would benefit from instituting the exemption and pointed out that two of the eight qualifying small business storefronts are empty. “It would effectively have a slight reduction in the rent,” he said of the small businesses qualifying for the exemption.
At the meeting, the Select Board also:
- Acknowledged that a special permit hearing request for the property of Jane Iredale was withdrawn as unnecessary to achieve the desired modifications;
- Approved an officer change for Once Upon a Table Inc. manager/operator Avie Maloney;
- Appointed Cathy Buffoni to the Council on Aging Board;
- Approved one-day alcohol licenses for Berkshire Botanical Garden on Oct. 21 and Nov. 4;
- Heard a presentation from Community Television for Southern Berkshires to support state bills S34 and H74, advocating for community media;
- Agreed to move forward with efforts to create a committee that would foster stronger relationships between the Mohican community and Stockbridge residents;
- Approved an insert to be included with tax bills regarding methods of paying those bills;
- Set Trick or Treat for Oct. 31, 5–7 p.m.;
- Announced a Halloween Parade and Pumpkin Walk on Oct. 27, 6–7:30 p.m.; and
- Reminded residents regarding a Special Town Meeting set for Oct. 23 at 6 p.m.
