1. City of Haverhill FY 2019 Classification Hearing
Tuesday, November 13, 2018
Presented by the Haverhill Board of Assessors

2. Tax Classification FY 2019
The purpose of this public hearing is to determine how the Tax Levy (Pie) is divided
Classification does not change the size of the Pie but it can change the percentage share of the Pie
In other words, the amount of money the City can raise through taxes remains a constant regardless of the percentage shift of the tax burden between the classes

3. State Mandated Interim Year Update of All Property Values
Every Non Revaluation year the Commonwealth requires all municipalities to perform a complete update of all Real and Personal Property values based on the prior calendar year sales and overall market conditions.
This year, FY 2019, Haverhill’s Residential class has increased in value at a greater rate than the Commercial, Industrial & Personal Property (C.I.P) class.
Due to the fact that the Residential class assessments increased at a greater % rate this year as compared to the C.I.P class, the Overall C.I.P. share in FY 2019 decreased and the Residential share increased.
To lessen the burden on residential taxpayers, the city may shift the tax share from one class to another.

4. Percentage Share of Total Tax @ a Shift of 1 (single tax rate)
FY 2019
FY 2018
CIP
CIP
Residential
Residential
FY18 Average Single Family $4,896
FY19 Average Single Family: $5,119
FY18 Average Commercial: $9,980
FY19 Average Commercial: $9,979

5. Chapter 200 Acts of 1988
Provides for a shift up to 175% of the single tax rate if the residential share is LARGER than the prior year’s share.
FY18 – Residential Share Chosen –
FY19 – Residential –
The FY 2019 Residential Share is LARGER than FY 2018 share, therefore, the city DOES qualify for the provisions of this legislation.
Maximum allowable shift for FY19 is 175%

6. Percentage Share of Total Tax @ 159 Shift
FY 2018
FY 2019
CIP
CIP
Residential
Residential
FY18 Avg Single Fam. $4,391
FY19 Avg. Single Fam. $4,633
FY18 Avg. Commercial $15,811
FY19 Avg. Commercial $15,868

7. Percentage Share of Total Tax @ Shifts of 1,159,162,165
Taxes $9,979
Taxes $5,119
Taxes $15,868
159
Taxes $4,633
Taxes $16,169
162
Taxes $4,606
Taxes $16,470
165
Taxes $4,580

8. Property Value Change FY19 (In Percentage) State Mandated Interim Yr Value Adjustments
Single Family
Residential

9. FY 19 Interim Year Value Effects on Taxes With CIP Shift at 159%
Industrial
Single Family
Residential
Commercial

10. FY19 Interim Year Value Effects on Taxes (With CIP Shift at 162)

11. FY19 Interim Year Value Effects on Taxes (With CIP Shift at 165)

12. TAX IMPACT USING MEDIAN VALUES FY 2019
Single Family Median Value $310,200 Taxes - 159%
Increase of $ over FY 18 Median
Commercial Median Value $283,100
Taxes -
Increase of $15.23 over FY 18 Median

13. FY19 Calculation of the Tax Rate
Determine Tax Levy $$
FY19 Levy - $103,872,000
Determine Total Value
FY19 Total Taxable Value - $6,661,940,690
Uniform or “Single” Tax Rate (Tax Levy / Total Value)
$103,872,000 / $6,661,940,690 = $15.59

14. FY19 Calculation of the Tax Rate
FY19 Residential Value - $5,735,288,608
FY19 C.I.P. Value - $926,652,082
FY19 Residential %
FY19 C.I.P. %
Shift Determined ( 1.59 ) *
C.I.P. % X 1.59 = % New share
New % multiplied by Tax Levy = New C.I.P. Taxes
% X $103,872,000 = $22,972,643
New C.I.P. Taxes divided by Total C.I.P. Value = C.I.P. Tax Rate
$22,972,643 / $926,652,082 = $24.79

15. Average Tax Bills @1% Increments at $103,872,000 Levy

16. Average Tax Bills @1% Increments at $103,372,000 Levy

17. Average Tax Bills @1% Increments at $102,872,000 Levy

18. Haverhill’s Current CIP Shift Compared to Similar Communities
Salem, MA - 169
Quincy - 175
Lawrence - 175
Lowell - 175
Lynn - 175
Peabody – 171
Billerica - 175
Amesbury – 1
Newburyport – 1
North Andover – 136
Andover – 154.5
Haverhill – 159**
Methuen – 173
Beverly – 168.5
A lower CIP Shift Corresponds with a higher Residential tax
There are Approximately 110 communities that classify
** Haverhill FY19 proposed at 159 all others actual FY18**

19. NOTE
This is a policy and economic decision of the Haverhill City Council and the Assessor’s Office assumes no official Position on this matter.