Charlie Breitrose A lot of money was raised and spent on the 2015 Watertown Election.
Watertown homeowners will see their property taxes rise nearly 7 percent after the City Council approved the Fiscal Year 2026 Tax Classification on Wednesday night.
The average residential tax bill is $11,328, which is up $734 or 6.9 percent, according to the presentation by Earl Smith, the chair of the Watertown Board of Assessors. The Council also adopted the residential exemption at 35 percent, which provides a savings of $3,965. The average tax bill with the residential exemption is $7,363, which is up $476 or 6.9 percent.
City Manager George Proakis said the FY 2026 Tax Levy is based on a budget that is within the confines of Proposition 2-1/2, and would not require an override.
Smith said the members of the Board of Assessors recommended that the Council do the maximum residential exemption of 35 percent, as they did last year. They also recommended the 175 percent shift of taxes from residential properties to commercial, industrial and personal property (CIP).
“Watertown adopted Chapter 200 of the Acts of 1988 which allows us to split up to 175 percent from the residential class to the commercial class couple, and that’s provided that we meet certain conditions, residential taxpayers must pay the greater of either 50 percent of the full and fair cash value or the lowest residential percentage,” Smith said. “A couple years back, we ran into that problem, hitting that lowest residential percentage with the increase in commercial properties.”
In August, the Council submitted a new Home Rule Petition seeking to allow the exemption to be permanent. Councilor Lisa Feltner asked whether Watertown would have to adjust the tax rate if the Home Rule petition to close a loophole in the law governing how much of the tax burden can be shifted from residential properties to CIP.
City Council President Mark Sideris said the FY 2026 tax classification falls under the temporary relief approved by the State Legislature in 2023. If granted, Watertown would be able to apply the 175 percent shift to residential properties with a total value of 50 percent of the total Tax Levy.
Otherwise, Watertown would be limited to 38.76 percent, which was the proportion when Watertown created the split tax rate. This would result in much higher tax rates for residents with the City not being able to shift as much to the commercial properties, Proakis said during the State of the City in September.
New Growth
Smith said that Watertown added $3.5 million in tax revenue from new developments, known as New Growth.
That number is lower than previous years (the average for the previous three years was $7.7 million) but is still healthy during the current economy. Councilor John Gannon said Watertown is unusual for Massachusetts communities.
“I am working for a state agency that monitors city and town finances,” he said. “Watertown is well regarded statewide and both from the state and the envy of our peers.”
Smith credited the Community Development and Planning Department for attracting new development in town.
“We couldn’t do it without (Assistant City Manager for Community Development and Planning) Steve Magoon,” Smith said.
Compared to how health insurance rates have increased this year 7% seems like a great deal.
Most likely residents won’t be happy about this, but you get what you pay for and Watertown is such an amazing community, wonderful place to raise children and families, new schools (sort of), socially progressive, beautiful parks and recs, safe, and generally (somewhat) inclusive. A place we are all lucky to live!
Also kudos to the residential exemption. That helps us shift working residents so much.
Thanks for being 6-7 City of Watertown (COW)!