The tax rate will increase in Milford this year, as will the average tax bill.
Milford Selectmen on Monday set the residential tax rate at $16.95 for each $1,000 of assessed value. This will leave the owner of the "average" house in Milford with a tax bill of $4,455.15 in fiscal 2013, an increase of $132.42.
The average house in Milford is worth $262,841. This value dropped about 1.68 percent this year. All kinds of property fell in value in Milford, based on 2011 sales, except for triple-families. The fall in values led to an increase in the tax rates to cover the approved fiscal 2013 budget.
According to data released Monday:
- The average condo in Milford is now worth $167,108, a decrease of 3.6 percent in one year. Condos had the steepest decline in value of all property types. Condo owners will pay, on average, about $29.42 more in taxes this year.
- The average two-family structure is valued at $218,898. This class fell about 1.5 percent in value.
- Three-family residences were the only property type that gained value, based on the 2011 sales. Their average value of $236,725 grew by .8 percent. Owners of triple-families will pay about $214.97 more in taxes this year.
- Commercial and industrial properties will have a tax rate of $29.21 for each $1,000 in value. The value of commercial properties fell by 3.1 percent, to an average of $756,297. Based on that value, a business would pay on average $356 more in tax this year.
- Industrial properties also fell in value, to an average of $1,055,322. The percentage fall was 3.8 percent. On average, industrial properties will pay $804.68 more in taxes, the largest dollar amount increase of all property classes.
In setting the tax rate, selectmen said they tried to strike a balance between an appropriate split for commercial and industrial properties, and residential properties. Because business and residential owners pay different rates, called a split tax rate, business properties are helping to subsidize residential properties.
Selectmen approved the divided tax rate last year, and continued it again in 2013.
In approving the fiscal 2013 budget, Town Meeting members agreed to direct $1 million in free cash toward lowering the tax rate. According to figures released Monday, that decision lowered the annual tax bill by $81.49 for residential tax bills, and $408.40 for business taxes.