Thursday, December 2, 1999 Older Editions

Tax rate down; but bill goes up

By Neil Fater

The average homeowner will pay $274.08 more in local property taxes this year than last, thanks to increasing home evaluations and the Board of Selectmen's decision Monday night to shift some of the existing tax burden from businesses to residents.

Although Andover will still tax commercial and industrial property owners at a higher rate than residents, businesses will pay a 26-percent surcharge, as opposed to the 30-percent surcharge paid last year.

Selectmen's unanimous decision to use a tax factor of 1.26 means residential home owners will pay $14.64 per $1,000 of property evaluation, while commercial/industrial owners will pay $20.10 per $1,000.

This means residents will see a 3.5 percent decrease in their tax rate, while businesses will see a 7.5 percent decrease. But because of the increased evaluations, both businesses and residents will pay more in taxes.

The average residential tax rate will be $4,594.70, an increase of a little more than $274.

The 1.26 tax factor recommended by Selectman Brian Major was a compromise between those who wanted more of a tax break for businesses and those who wanted things to remain the same.

Noting businesses have no vote in town elections, both selectmen Lori Becker and Larry Larsen suggested they have been stuck with too much of the tax burden over the years.

"I have consistently felt this is an outrageous tax system," said Larsen. "It's an addiction for a city or town. Andover is no exception.

"We really rely on these businesses for a lot," he continued later. "It worries me because if we lose a percentage of these businesses it is really going to hurt us. We rely on this (business) money for big-ticket items, and there's no guarantee those businesses are going to stay."

However, Mary French said she fears a residential tax increase potentially "throws a monkey wrench" into the effort to build two new schools.

Selectmen ultimately approved the 1.26 factor, with a stipulation that the Open Space Committee, Affordable Housing Committee and Industrial Development Committee would look into whether tax breaks should be offered next year to those who use land for open space, affordable housing or small businesses.

Selectmen did hear from one resident, fire lieutenant and Housing Authority member Jim Cuticchia, who told selectmen they were "hurting the people who will have the greatest difficulty in paying."

The reason for towns to encourage business growth is so that the businesses can help with the tax burden, says Cuticchia. He also said one reason taxes increase is to pay for the extra traffic lights, road improvements and town facilities needed for all the town businesses.

"We have a water treatment plant that pumps a lot of water, and it isn't so you and I can have a shower," he says. "I really feel you're going to hurt the small home owner."