Mayor Sarno and Board of Assessors Announce Recommendation for Significant Lower Residential and CIP Tax Rates

Mayor Domenic J. Sarno and the Board of Assessors announced today the recommendation for Residential and Commercial Tax Rates for Fiscal Year 2025 (FY25).  The recommended rates for FY25 are $15.68 for residential property, and $35.22 for commercial, industrial, and personal property (CIP). 

Additionally, in an effort to continue to provide as much relief possible for city residents and businesses, Mayor Sarno, after discussions with City Councilor Tim Allen, Chair of the City Council Finance Committee, and continuing to work together with the City Council will commit a total of $6 million to offset the tax levy; $4 million from certified free cash and $2 million from the interest on the innovative financial investment plan off of the United States Treasury Notes.

This recommendation has been developed in consultation with Chief Administrative and Financial Officer (CAFO) Cathy Buono, Deputy CAFO Lindsay Hackett, Chairman of the Board of Assessors Attorney Patrick Greenhalgh and the Board of Assessors.

The residential rate reflects a decrease of $.38 from last year’s rate of $16.06.  The CIP rate reflects a decrease of $.19 from last year’s rate of $35.41.  If approved by the City Council, this will be the lowest residential rate in over 20 years, since 1993.

Due to the booming real estate market, the average single-family tax bill could have increased by approximately $275, if the residential rate stayed the same from FY24. 

With the lower residential tax rate and the $6 million the Sarno Administration has committed to help offset the tax levy, the average single-family tax bill will only increase by approximately $177, a $98 decrease from $275.  

The real estate market has remained strong over the years, which reflects in the comparable market sales and values as of January 1, 2024.  The average single-family home value rose to $255,800 from last year’s $238,700, a nearly 7.2% increase or $17,100.   As a result, many homeowners now have additional equity in their properties. 

The average single-family tax bill produced by the proposed rate would be approximately $4,011, which is expected to keep Springfield in the bottom ten percent of all communities in the Commonwealth.  Last year, the average single-family tax bill was $3,834. 

The proposed rates will be forwarded to the City Council for consideration.

Mayor Sarno states, “Our residents are feeling the effects of inflation and the increases in prices such as the cost of buying groceries.  All of this has a negative effect on our resident’s quality of life.  I strongly believe that this significantly lower tax rate, especially for our residential rate, will continue to provide much-needed relief for our residents.  With this significantly lower residential tax rate and the $6 million I have committed to offset the tax levy, the average single-family tax bill, which could have increased by $275 using the same residential tax rate as last year, will now increase approximately $177, a $98 decrease.  After discussions with Councilor Tim Allen, Chair of the Finance Committee, and as we have done in the past working with the City Council to continue to provide tax relief for our residents, I am happy that we could work together and keep the approximate average increase under $200.” 

“These strategic and fiscally prudent measures are made possible thanks to our sound and sustainable financial policies and our innovative investment strategies that aim to enhance the quality of life for our residents while being mindful of our overall budget and being able to maintain our core city services, programs and initiatives,” said Mayor Sarno. 

Councilor Tim Allen, Chair of the City Council Finance Committee stated, “I want to thank Mayor Sarno and his administration, especially CAFO Cathy Buono and Chair of the Board of Assessors Patrick Greenhalgh for working with the Tax Committee, the City Council Finance Committee and my fellow Councilors as we continue to work together to provide tax relief for our residents and businesses.  This lower tax rate and our investment to offset the tax levy is significant and will provide much-needed tax relief for our residents.  This is not an easy discussion but I strongly believe this is a sound and prudent strategy where we can do both; provide much-needed tax relief for homeowners, while also being mindful of addressing our anticipated municipal expenses as well.”  

“This is a delicate balancing act of maintaining core and vital city services while also being respectful to our residents and businesses,” Mayor Sarno added.  “We must remain mindful and plan accordingly for any unforeseen emergencies, expenses, and economic uncertainty we may experience, including a possible recession, inflation, and shortages on goods and materials which can drive prices up.  We don’t want to mortgage our future with short-term and short-sighted measures that will result in our taxpayers later experiencing a balloon property tax payment in the future when the funding to offset the tax levy isn’t there, while also hindering our municipal efforts to provide services, programs, infrastructure enhancements, and relief in the future.”

“My administration is committed to providing what relief and support we can while maintaining core and vital services to continue stimulating our local economy, business development, and creating more of that good four-letter word, jobs, while just as important, being respectful to our homeowners,” said Mayor Sarno. 

Another contributing factor in the City’s healthy real estate market is the City’s very successful first-time homebuyers’ program.

CAFO Cathy Buono stated, “Thanks to our careful fiscal stewardship under the direction of Mayor Sarno, the Office of Administration and Finance is able to continue to provide much-needed relief for our tax paying residents and businesses.  This is always a delicate and challenging balancing act.  We strongly believe that the various measure of relief that are offered will allow us to maintain our fiscal flexibility to continue to invest in our reserves, pension liability, infrastructure improvements and maintain core city services and our options for providing continued relief in the future.”

Chairman of the Board of Assessors Patrick Greenhalgh stated, “I believe we continue to strike a good balance of maintaining a sound and respectable fiscal tax rate while trying to provide as much relief we realistically can for our taxpayers.  These are not easy decisions but we are confident that our taxpayers will realize less of an increase in their bills.”

The assessed values of real estate reflect physical condition as of June 30, 2024 and market value as of January 1, 2024. 

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Statutory Tax Exemptions

Mayor Sarno and Assessor Greenhalgh would like to remind the public that homeowners may be eligible for property tax relief based on their personal circumstances.  Especially for seniors, as Mayor Sarno and the City Council approved additional monetary relief by modifying the limits on the State Clause 41C statute for tax abatements for seniors.  The eligibility age has been reduced to 65 from 70, and the abatement amount increased to $1,000 from $500.

There are two types of applications.  Homeowner Personal Exemption applications and Property Overvalue applications. 

Homeowner Personal Exemption applications include State statutory relief for citizens of Sixty-Five years of age who meet certain income and asset levels; widows and widowers of any age with assets below a certain level or persons over 70; veterans of at least 10% disability or otherwise meeting other criteria; and blind persons. In Fiscal Year 2024, over 1,000 households received some type of statutory relief, for an approximate aggregate savings of $850,000.  Please note, the deadline to file is April 1, 2025

Property Overvalue applications are mostly used to appeal the Fair Market Value of your home to the Board of Assessors. If you believe the assessed value of your property exceeds the fair market value, it is your right to file an overvalue application.  Please note, the deadline to apply February 3, 2025.

Furthermore, Mayor Sarno has sponsored two additional targeted tax relief initiatives. 

First, Mayor Sarno and City Councilor Kateri Walsh are sponsoring the local option for the HERO’s Act that will provide additional tax exemptions for eligible veterans. 

Second, Mayor Sarno and City Council President Attorney Michael Fenton, City Councilor Tim Allen – Chair of the Council’s Finance Committee, and Councilor Victor Davila – Chair of the Council’s Pilot New Revenue Committee, are sponsoring a Targeted Tax Relief local option that will provide much-needed tax relief for even more eligible households.  Both local tax relief options are currently before the City Council for consideration.  

The Assessor’s Office encourages all residents who are unsure if they might qualify, to call or come into the Assessor’s Office in order to discuss their options. The Assessor’s Office phone number is (413) 886-5256.  Their office is located in City Hall, 36 Court Street, Room 9, Springfield, Massachusetts. 

Mayor Sarno stated, “I want to commend my Board of Assessors – Patrick Greenhalgh, Jessica Guerra, and Margaret ‘Pedge’ Lynch, and their staff for their efforts and the excellent job they do working with and getting back to our residents and businesses that reach out for help.”

Additionally, seniors can file for the Massachusetts Senior Circuit Breaker Tax Credit for Owners and Renters. The maximum amount of this credit has recently doubled.  The Mass Senior Circuit Breaker Tax Credit is available for seniors age 65 or older, who meet certain income guidelines.  For more information, please visit the Massachusetts Senior Circuit Breaker Tax Credit website at:   www.mass.gov/info-details/massachusetts-senior-circuit-breaker-tax-credit