Worcester Sets 2021 Tax Rates: Residential Down, Commercial Up

WORCESTER, MA — A process that some Worcester City Councilors call "splitting the baby in half" took place Tuesday night: the setting of 2021 tax rates.

After some debate, the Councilors chose tax rates of $16.28 per $1,000 for residential homeowners and $36.20 for commercial properties. That's a 72 cent drop for residents and more than a $1 increase for commercial owners compared to 2020.

But residential property owners may still see bigger bills this year due to higher assessed property values. The average value of a single-family home rose 8.23 percent between 2020 and 2021, according to the assessor. The owner of a home with a value of about $268,000 — the citywide average — could see a tax bill increase of about $160 in 2021.

The value of two and three-family homes increased even more at 12.46 percent and 18.94 percent, respectively. Meanwhile, commercial and industrial property values fell by 1.15 percent and 0.56 percent, respectively.

Like most large communities in the state, Worcester splits its tax rate, shifting some burden away from residential property owners and commercial owners. Almost every Councilor expressed concern about setting tax rates that would further harm businesses diminished by the pandemic — but also homeowners and renters who are also likely experiencing hard times.

"There's nobody that hasn't been impacted by the financial disaster that's accompanied Covid," At-Large Councilor Kathleen Toomey said.

Councilors did build in some relief for taxpayers. At-Large Councilor Morris Bergman spearheaded an effort to return $1 million to the taxpayers. The money was supposed to come from free cash, but City Manager Edward Augustus Jr. instead used $1 million from his office's contingency fund for the relief.

The $1 million in relief reduced tax rates on average by 6 cents for residential owners and 9 cents for commercial owners, according to the assessor.

There was an opposing tax rate proposal led by District 5 Councilor Matthew Wally. He sought a slightly lower rate of $35.17 per $1,000 for commercial taxpayers, and a slightly higher rate of $16.67 for residents.

Wally's proposal was closer to what the Worcester Chamber of Commerce had advocated for. During each year's tax rate hearing, the chamber typically advocates for lower rates for commercial property owners, and the group AWARE (Accurate Worcester Assessments on Real Estate Value) asks for lower residential rates.

Councilors Wally, Sean Rose, Toomey and Mayor Joseph Petty voted for Wally's proposal.

The tax rates that ultimately passed — which AWARE advocated for — were backed by Councilors Donna Colorio, Morris Bergman, Candy Mero-Carlson, Khrystian King, Sarai Rivera, Rose, Gary Rosen, and George Russell. Petty, Wally and Toomey voted no.

Update: An earlier version of this story omitted At-Large Councilor Khrystian King's "yes" vote for the $16.28 tax rate.