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Medford Property Tax Rates Hiked

The City Council made its decision and Medford's residential property tax rates went up for single family homeowners, reports the Boston Globe.

What may frustrate residential property tax payers even more is that as their rates went up, the commercial tax went down. As a result, single-family homeowners in Medford will pay an average $155 more in taxes this year. This is the 25th year in a row that taxes have gone up, according to Councilor Robert M. Penta.

Generally speaking, a local taxing authority (e.g. the county or municipal government) uses one of two methods to calculate the property tax rate:

In the first method, the taxing authority estimates its total expenditures over a given time period. Then, it divides that figure by the taxable or assessed value of all property within its jurisdiction. The result is the tax rate. This rate is sometimes expressed using percentages; sometimes it is expressed as a dollar amount (i.e. $1 per $100).

This is the preferred method for Medford property taxes. The new Medford residential property tax rate will be at $12.03 per $1,000 valuation, and the new commercial/industrial rate will be at $23.72 per $1,000 valuation, according to the Globe.

In the second method, the taxing authority estimates the amount of taxes available from property tax levied at a specific rate. The taxing authority will either increase or decrease its budget based on increases or decreases in the total value of the property's taxable or assessed value. This is a more cumulative and often overlapping way of determining property tax.

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