CITY COUNCIL

TAX CLASSIFICATION
PRESENTATION
November 20, 2012

Presented By
The Board Of Assessors

LEVY, LEVY LIMIT & EXCESS LEVY CAPACITY

Levy is the amount the City raises each year through Property Taxes .
The Levy Limit is the Maximum amount the City can levy. FY 2013 Tax

Levy Limit increased by $2,476,410 over FY 2012.

Excess Levy capacity is the difference between the Levy Limit and the
Actual Levy.
Levy Summary
FY 2012 Levy

$52,314,601

FY12 Amended Growth

Prop 2 1/2 Increase

$1,307,865

New Growth

$1,168,545

Overrides

$0

FY 2013 Maximum Levy

$54,791,011

FY 2013 Proposed Levy

$54,791,011

Excess Capacity
November 20, 2012

$0

BOARD OF ASSESSORS

$0
CLASSIFICATION HEARING

FY 2013 VALUES

Values are based on Sales in Calendar Year 2011

The residential values decreased by 1.19% and

commercial/industrial decreased by 0.38%.

The City of Lawrence Total FY2013 Property value is $2.664
Billion. This is a 1.04% decrease from FY 2012.
The average single family home assessed value in FY 2013 is
$167,771. This is a $9,065 decrease from FY 2012 average
assessed value of $176,836.

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

WHAT IS NEW GROWTH?

New Growth is a calculation of the net increase in municipal property values

because of new construction, improvements to properties, subdivisions, condo
conversions, the return of exempt property to the tax rolls or new personal
property accounts as well as new personal property equipment at existing
locations.
New Growth is added to the Citys Levy Limit, thereby increasing the Citys
taxing capacity.
Assessors must submit documentation of New Growth to the Bureau of Local

Assessment annually and receive approval prior to setting the tax rate.
The New Growth assessed value for real and personal property is
$46,026,755 which will increase the FY13 tax levy by $1,168,545.

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

PROPERTY VALUE CHANGE 2012 VS. 2013

Property Value Breakdown
Total Real Property Value FY2012
Total Real Property Value FY2013
Real Property Value Change

$2,692,587,300.00
$2,664,628,200.00
($27,959,100.00)

-1.04%

Residential Property Value FY2012

Residential Property Value FY2013
Residential Value Change

$2,177,269,713.00
$2,151,293,326.00
($25,976,387.00)

-1.19%

Commercial Property Value FY2012

Commercial Property Value FY2013
Commercial Value Change

$313,166,987.00
$313,582,474.00
$415,487.00

0.13%

Industrial Property Value FY2012

Industrial Property Value FY2013
Industrial Value Change

$202,150,600.00
$199,752,400.00
($2,398,200.00)

-1.19%

Personal Property Value FY2012

Personal Property Value FY2013
Personal Property Value Change

$149,378,760.00
$154,725,420.00
$5,346,660.00

3.58%

$2,841,966,060.00
$2,819,353,620.00
($22,612,440.00)

-0.80%

Total Value FY 2012

Total Value FY 2013
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

LARGEST TAXPAYERS
FY 2013 Total Value

$7,641,500

$7,227,200

$8,298,080
$9,834,100
$38,164,500

$13,291,870

Verizon New England Inc

Mass Electric
Bay State Gas
Bouwfonds Jefferson Lp
Eqr Lincoln Andover LLC
Hampton on Beacon

$13,341,600

$35,929,140

New Balance Athletic Shoe

Chi Energy Inc

$13,770,630

Lawrence /Methuen Props

Comcast of MA
$29,007,400
$17,716,600

Seventeenth Law LLC

HJ Brooks LLC

$25,460,810

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

TAX LEVY- SINGLE TAX RATE

Tax Levy
FY 2013 Maximum Allowable Levy = $54,791,011
FY 2013 Estimated Levy = $ 54,791,011

FY 2013 Estimated Excess Capacity= $0

Total Value
FY 2013 Total Value = $2,819,353,620

FY 2013 Residential Value = $2,151,293,326 or 76.3045% of Total

Assessed Value.
FY 2013 C.I.P. Value = $668,060,294 or 23.6955% of Total Assessed
Value.
Single Tax Rate $19.43 / $1,000

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

THE FACTOR - SHIFTING DEFINITION

Shifting allows the City to reduce the Residential Classes

(R.O.) tax burden while increasing the C.I.P. tax share.

The combination of the two tax classification amounts
must equal the total property tax.
The chosen Factor for FY2012 was 1.73,which was less than
the maximum Tax Shifting allowed by law (1.75 max.).
Continuing with a Factor of 1.73, the residential tax rate for
FY 2013 will be $15.03, a $0.74 increase over FY 2012. The
correspondent C.I.P. tax rate for FY 2013 will be $33.62, a
$1.81 increase over FY 2012.
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

THE FACTOR- SUMMARY

Total Levy FY 2013

$54,791,011

Shift Determined Based on (1.73)

C.I.P. Tax Share =40.9932%
New C.I.P. Levy amount $22,460,609
Residential Tax Share = 59.0068%

Residential Levy Amount = $32,330,402

Residential Tax Rate

$15.03 / $1,000

C.I.P Tax Rate

$33.62 / $1,000
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

FY 2013 TAX LEVY BREAKDOWN

Factor of 1.73

Valuation

Valuation %

Tax Share

Tax Share %

$2,151,293,326

76.3045%

$32,330,402

59.0068%

Commercial

$313,582,474

11.1225%

$10,542,841

19.2419%

Industrial

$199,752,400

7.0850%

$6,715,802

12.2571%

Personal Property

$154,725,420

5.4880%

$5,201,966

9.4942%

$2,819,353,620

100.0000%

$54,791,011

100.0000%

Residential

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

10

FY 2013 TAX LEVY BREAKDOWN (What If)

Share Percentages
CIP Shift
1.70

Res

Com

Ind

Est Tax
Rate

Levy Amounts
PP

Res

Com

Ind

59.7176 18.9082 12.0446 9.3296 32,719,892 10,360,017 6,599,343

PP

Total

Res

CIP

5,111,759

54,791,011

15.21 33.04

1.71 59.4807

19.0195

12.1154 9.3844 32,590,062 10,420,958 6,638,162

5,141,828

54,791,011

15.15

33.23

1.72

59.2437

19.1307

12.1863 9.4393 32,460,232 10,481,900 6,676,982

5,171,897

54,791,011

15.09

33.43

1.73 59.0068

19.2419

12.2571 9.4942 32,330,402 10,542,841 6,715,802 5,201,966

54,791,011

15.03

33.62

1.74 58.7698

19.3531

12.328

9.5491 32,200,572 10,603,782 6,754,621 5,232,035

54,791,011

14.97

33.81

58.5329 19.4644

12.3988

9.604 32,070,742 10,664,723 6,793,441 5,262,105

54,791,011

14.91

34.01

1.75

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

11

CHOICE OF TAX RATES

Various Tax Rate Factors are shown below

Other choices are possible. As a reminder, a factor below

1.75 increases the residential tax bill.

Residential
Factor

RO Rate

RO Change $
From 2012

C.I.P Rate C.I.P. Change $

From 2012

1.75

$14.91

$0.62

$34.01

$2.20

1.74

$14.97

$0.68

$33.81

$2.00

1.73

$15.03

$0.74

$33.62

$1.81

1.72

$15.09

$0.80

$33.43

$1.62

1.71

$15.15

$0.86

$33.23

$1.42

1.70

$15.21

$0.92

$33.04

$1.23

* All $ are per $1,000 of Assessed Value

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

12

FACTOR COMPARISON

Below is a comparison of a factor of 1.73 for FY2013 and

FY2012
FY 2012
Class

Avg
Value

FY 2013
Tax Avg Tax
Rate

Avg
Value

Tax Avg Tax Delta Delta %

Rate
$

Residential

$185,138 $14.29 $2,646

$182,918 $15.03

$2,749

$104

3.92%

Commercial

$321,371

$31.81 $10,223

$321,139 $33.62 $10,797

$574

5.61%

$965,790

$31.81 $30,722

$937,804 $33.62 $31,529 $807

2.63%

Industrial

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

13

AVERAGE TAX BILL IMPACT ANALYSIS

FISCAL YEAR 2013 VS. 2012 (1.75 Factor)
FY 2012 Tax
Rate

R/O

$14.29

FY 2013 Tax
R/O
Rate
1.75
CIP
FY 2013 AverageValue
Single
Residential
167,771
$14.91
Condo Units
83,683
$14.91
Two Family
189,725
$14.91
Three Family

CIP
$31.81
FY 2012 Average Value
Single
Tax
Residential
Amount
176,836
$14.29
2,527
Condo Units
85,553
$14.29
1,223
Two Family
188,391
$14.29
2,692
Three Family
202,696
$14.29
Commercial
321,120
$31.81
Industrial
962,622
$31.81

2,897

201,908
Commercial
321,939
Industrial
937,804

10,215

30,621

$14.91
$34.01
Tax
Amount
$2,501

Tax Amt.
Change
($25.53)

$1,248

$24.71

$2,829

$136.80

$14.91

$3,010

$113.45

$34.01

$10,949

$734.15

$34.01

$31,895

$1,273.71

Note: Values and taxes are averages per

classification.
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

14

AVERAGE TAX BILL IMPACT ANALYSIS

FISCAL YEAR 2013 VS. 2012 (1.74 Factor)
FY 2012 Tax
Rate

R/O

$14.29

CIP
$31.81
FY 2012 Average Value
Single
Tax
Residential
Amount
176,836
$14.29
2,527
Condo Units
85,553
$14.29
1,223
Two Family
188,391
$14.29
2,692
Three Family

202,696
$14.29
Commercial
321,120
$31.81
Industrial
962,622
$31.81

2,897
10,215
30,621

FY 2013 Tax
R/O
Rate
1.70
CIP
FY 2013 AverageValue
Single
Residential
167,771
$14.97
Condo Units
83,683
$14.97
Two Family
189,725
$14.97
Three Family

201,908
Commercial
321,939
Industrial
937,804

$14.97
$33.81
Tax
Amount
$2,512

Tax Amt.
Change
($15.47)

$1,253

$29.73

$2,840

$148.18

$14.97

$3,023

$125.56

$33.81

$10,885

$669.76

$33.81

$31,707

$1,086.15

Note: Values and taxes are averages per

classification.
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

15

AVERAGE TAX BILL IMPACT ANALYSIS

FISCAL YEAR 2013 VS. 2012 (1.73 Factor)
FY 2012 Tax
Rate

R/O

CIP
FY 2012 Average Value
Single
Residential
176,836
$14.29
Condo Units
85,553
$14.29
Two Family
188,391
$14.29
Three Family
202,696
Commercial
321,120
Industrial
962,622

$14.29
$31.81
Tax
Amount
2,527
1,223
2,692

$14.29

2,897

$31.81

10,215

$31.81

30,621

FY 2013 Tax
R/O
Rate
1.73
CIP
FY 2013 AverageValue
Single
Residential
167,771
$15.03
Condo Units
83,683
$15.03
Two Family
189,725
$15.03
Three Family
201,908
Commercial
321,939
Industrial
937,804

$15.03
$33.62
Tax
Amount
$2,522

Tax Amt.
Change
($5.40)

$1,258

$34.76

$2,852

$159.57

$15.03

$3,035

$137.68

$33.62

$10,824

$608.59

$33.62

$31,529

$907.97

Note: Values and taxes are averages per

classification.
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

16

AVERAGE TAX BILL IMPACT ANALYSIS

FISCAL YEAR 2013 VS. 2012 (1.72 Factor)
FY 2012 Tax
Rate

R/O

$14.29

CIP
$31.81
FY 2012 Average Value
Single
Tax
Residential
Amount
176,836
$14.29
2,527
Condo Units
85,553
$14.29
1,223
Two Family
188,391
$14.29
2,692
Three Family
202,696
$14.29
Commercial
321,120
$31.81
Industrial
962,622
$31.81

2,897
10,215
30,621

FY 2013 Tax
R/O
Rate
1.70
CIP
FY 2013 AverageValue
Single
Residential
167,771
$15.09
Condo Units
83,683
$15.09
Two Family
189,725
$15.09
Three Family
201,908
Commercial
321,939
Industrial
937,804

$15.09
$33.43
Tax
Amount
$2,532

Tax Amt.
Change
$4.66

$1,263

$39.78

$2,863

$170.95

$15.09

$3,047

$149.79

$33.43

$10,762

$547.42

$33.43

$31,351

$729.79

Note: Values and taxes are averages per

classification.
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

17

AVERAGE TAX BILL IMPACT ANALYSIS

FISCAL YEAR 2013 VS. 2012 (1.71 Factor)
FY 2012 Tax
Rate

R/O

$14.29

CIP
$31.81
FY 2012 Average Value
Single
Tax
Residential
Amount
176,836
$14.29
2,527
Condo Units
85,553
$14.29
1,223
Two Family
188,391
$14.29
2,692
Three Family

202,696
$14.29
Commercial
321,120
$31.81
Industrial
962,622
$31.81

2,897
10,215
30,621

FY 2013 Tax
R/O
Rate
1.70
CIP
FY 2013 AverageValue
Single
Residential
167,771
$15.15
Condo Units
83,683
$15.15
Two Family
189,725
$15.15
Three Family

201,908
Commercial
321,939
Industrial
937,804

$15.15
$33.23
Tax
Amount
$2,542

Tax Amt.
Change
$14.73

$1,268

$44.80

$2,874

$182.33

$15.15

$3,059

$161.91

$33.23

$10,698

$483.03

$33.23

$31,163

$542.23

Note: Values and taxes are averages per

classification.
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

18

AVERAGE TAX BILL IMPACT ANALYSIS

FISCAL YEAR 2013 VS. 2012 (1.70 Factor)
FY 2012 Tax
Rate

R/O

$14.29

CIP
$31.81
FY 2012 Average Value
Single
Tax
Residential
Amount
176,836
$14.29
2,527
Condo Units
85,553
$14.29
1,223
Two Family
188,391
$14.29
2,692
Three Family

FY 2013 Tax
R/O
Rate
1.70
CIP
FY 2013 AverageValue
Single
Residential
167,771
$15.21
Condo Units
83,683
$15.21
Two Family
189,725
$15.21
Three Family

202,696
Commercial
321,120
Industrial
962,622

201,908
Commercial
321,939
Industrial
937,804

$14.29

2,897

$31.81

10,215

$31.81

30,621

$15.21
$33.04
Tax
Amount
$2,552

Tax Amt.
Change
$24.80

$1,273

$49.82

$2,886

$193.72

$15.21

$3,071

$174.02

$33.04

$10,637

$421.86

$33.04

$30,985

$364.04

Note: Values and taxes are averages per

classification.
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

19

AVERAGE TAX BILL IMPACT ANALYSIS

FISCAL YEAR 2013 VS. 2012 (CONT.)
Factor

Res. Avg. SFH

Rate
Bill

1.75

14.91

$2,501

Dif.
From
2012
($26)

1.74

14.97

$2,512

($15)

-0.61%

1.73

15.03

$2,522

($5)

-0.21%

1.72

15.09

$2,532

$5

0.18%

1.71

15.15

$2,542

$15

0.58%

1.70

15.21

$2,552

$25

0.98%

1.68

15.33

$2,572

$45

1.78%

1.65

15.51

$2,602

$75

2.97%

November 20, 2012

Change
%
-1.01%
Factor

1.75
1.74
1.73
1.72
1.71
1.70
1.68
1.65

BOARD OF ASSESSORS

Res.
Avg.
Rate Condo Bill
14.97
15.03
15.09
15.15
15.21
15.33
15.51
14.76

$1,253
$1,258
$1,263
$1,268
$1,273
$1,283
$1,298
$1,235

Dif.
From
2012
$30
$35
$40
$45
$50
$60
$75
$12

Change
%

CLASSIFICATION HEARING

2.43%
2.84%
3.25%
3.66%
4.07%
4.89%
6.13%
0.99%
20

PROPERTY TAX ANALYSIS CLASSIFICATION

AVERAGE VALUE FISCAL YEAR 2013 VS. 2012
$3,500
$3,000
$2,527
$2,500

$2,692

$2,522

$2,852

$2,897

$3,035

$2,000
$1,500

$1,223 $1,258

$1,000
$500
$0
Single Residential

Condo Units
FY2012

Two Family

three Family

FY2013

* 1.73 Factor
November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

21

DISCUSSION/VOTE

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

22

CONCLUSION OF CLASSIFICATION
PRESENTATION

November 20, 2012

BOARD OF ASSESSORS

CLASSIFICATION HEARING

23