On Monday night, the Chelsea City Council unanimously approved property tax rates for both residential and commercial properties. The decision included a boost to the owner-occupant exemption—now at 27.5 percent—which will result in lower tax bills for most homeowners with single-family residences.
“(These tax rates) will result in a reduction in the average tax bill for owner-occupied single family homes, and a modest tax increase to other owner-occupied parcels,” wrote City Manager Tom Ambrosino.
Residential properties will be taxed at $14.17 per $1,000 of assessed value, while commercial properties face a rate of $29.75 per $1,000 of value. Both rates remain subject to approval by the state Department of Revenue, which may make minor adjustments if necessary.
The typical owner-occupied single-family home will experience a tax decrease, dropping from $2,723 last year to $2,654 this year. Chelsea contains 843 single-family homes.
Condo owners will face an increase from $1,893 to $2,100, while two-family properties will see a modest rise compared to previous years—moving from $3,657 to $3,781 on average.
Three-family homes will also experience a comparatively smaller increase than in prior years, rising 3.8 percent from $4,927 to $5,114.
Condo properties saw the steepest tax bill increase at 11 percent over last year. These properties are also the most common in Chelsea, numbering 1,839 units.
Although the Council could have raised the owner-occupant exemption to 35 percent, it opted to continue a gradual approach toward that threshold. The previous year, after gaining the option to jump from 20 percent to 35 percent, the Council took a measured stance and set the exemption at 25 percent.
The 27.5 percent exemption represents this year’s incremental step forward.
“By selecting the 27.5 percent residential exemption amount, the City Council will have the opportunity to spread the benefit of the 35 percent exemption limit over several additional fiscal years,” Ambrosino wrote.
The Council gave the matter limited discussion before voting 11-0 in favor of the tax rates and related measures.