By Carol Britton Meyer

While the proposed tax rate for FY23 is 3% lower than the FY22 rate, the value of single-family homes in Hull has increased, meaning that homeowners will pay an average of $241.65 more, or 3.6%, in real estate taxes this year.

Because the value of commercial properties increased by far less of a percentage than single-family homes, the average tax bill will decrease by $2, or .02%, based on the tax rate approved by the select board at the annual public hearing this week.

CLICK HERE FOR THE FULL PRESENTATION FROM THE TAX RATE HEARING.

The proposed FY23 tax rate is $12.17, down from $12.54 per $1,000 of assessed value for the previous fiscal year, subject to Massachusetts Department of Revenue certification.

“That’s the good news,” Town Accountant Michael Buckley said Wednesday. At the same time, “residential property values have gone up by 7% and commercial property values by 3%.”

The average annual tax bill for a single-family dwelling for the last fiscal year was $6,741.50, based on an average home value of $537,600. In the current year, the average value has increased to $573,800, and the average tax bill will be $6,983.15.

The average commercial property valuation is $666,300, up from $646,800 in FY22. The average commercial property tax bill will decrease from $8,110.87 to $8,108.87.

In accordance with tradition, the select board voted to maintain a single tax rate for residential and commercial properties during this year’s tax classification hearing upon the recommendation of Buckley and the board of assessors.

Because 95% of the properties in town are residential, with a very small commercial base, maintaining the single tax rate means that most of the tax burden falls on residential property owners.

While a split tax rate would shift some of the tax burden from residential to commercial properties, they comprise only 3% of the town’s total valuation. This means that any shift of the tax burden in that direction would “just crush” commercial businesses, according to Buckley.

Hull ranks 16th among the 27 communities in Plymouth County when comparing the average single-family tax bill, according to the assessors’ presentation to the select board.

A small portion of the property tax – 2% -- applies to personal property. This tax is levied by the jurisdiction in which the property is located and includes tangible property that is not real property, such as furniture in second homes or business equipment.

If the tax rate were split, homeowners would save relatively little, while the average commercial property owner would see his or her tax burden greatly increase, depending on the percentage of the split, Buckley explained.

For example, at 10%, the average homeowner would save $28.69, with an increased tax burden of $812.89 for the average business. At 50%, the average homeowner would save $149.19, while the average business would face an increased tax burden of $4,057.77.

The select board also voted not to adopt residential or small-business exemptions, which would shift some of the tax burden toward higher-valued properties.

There are 5,187 residential parcels in Hull with a total value of $2.8 billion, zero open space parcels, 126 commercial parcels with a total value of $72.7 million, zero industrial, and 797 in the personal category, which is worth $45.6 million.

Buckley provided a chart listing the range of values for Hull’s single-family homes. Out of those, as a few examples, none are valued at below $100,000 and only 120 are valued between $200,000 and $300,000. There are 1,001 homes in the $400,000 to $500,000 category. Fourteen are valued at more than $2 million.

“There are a lot fewer starter homes in town than there used to be,” Buckley said. “Hull is a desirable place to live.”

Town Manager Philip Lemnios and select board Chair Jennifer Constable expressed appreciation for Buckley’s and the board of assessors’ hard work leading up to this presentation.

“It’s a complicated process,” Constable said.

The hearing was continued until the proposed FY23 tax rate is certified by the state.