WILBRAHAM — Historically, Wilbraham has used a single tax rate, with all property owners paying the same amount per $1,000 of property value. On Nov. 4, the Select Board chose to continue the practice for fiscal year 2026.
A municipality’s tax levy calculation for the next fiscal year begins with the current fiscal year’s levy. In Wilbraham, the FY24 levy is $45.49 million. From there, the state allows an additional 2.5% to be raised through taxes, $1.13 million, plus the taxable value of the town’s new growth, $548,000. Adopting a single tax rate, property owners can expect to pay an estimated $17.85 per $1,000 of assessed property value for FY25, 65 cents less than the FY24 tax rate.
Principal Assessor Christopher Keefe explained that, despite the drop in the rate, taxpayers can still expect higher bills this year because property values increased. Property values rose by 8% over the previous year in 2022 and, again, in 2023. The trend has continued this year, with another 8% rise in property values. “It’s been that kind of real estate market,” Keefe said. However, sales appear to be slowing from about 200 single family home sales per year to 133 this year. “There’s not a lot of inventory out there because people scooped them up and they’re not selling them,” he added.
The average annual tax bill is estimated to be $8,000 this year, $300 more than last year.
In addition to a single tax rate, Keefe presented the Select Board with options for a split tax rate, in which the town can shift a percentage of the burden away from residential property owners and onto owners of commercial, industrial and personal property. “The vast majority of the value lies within the single family and condominium [classification],” said Keefe. This means that shifting the burden to the relatively few businesses in town will have an outsized impact on them.
There are other options, as well. Within the residential classification, the board could have chosen to shift the burden to rental properties, lowering the tax rate for owner-occupied properties. However, all but 1% of homes in Wilbraham are owner-occupied, and as with the split tax rate, most people would see a relatively small savings, compared to the substantially higher bills of rental owners.
Another option allows for a small commercial exemption. Properties of less than $1 million in assessed value, housing businesses with 10 or fewer employees would pay a lower tax rate than the owners of larger commercial and industrial properties. This option benefits property owners, and not necessarily the small business owners.
Select Board Chair Sue Bunnell called the tax classification options “straight forward” and the board agreed on a single rate without debate.
HERO Act
Director of Veterans Services Jered Sasen spoke to the board about the state’s HERO Act and how it could affect the tax rate for veterans. Veterans in the state are already eligible for a property tax abatement, but Sasen explained that the abatement figures have not been increased in 35 years. If the town decided to opt in, the HERO Act would allow veterans to receive up to double the abatement for which the veteran is currently eligible. Further, the amount could increase each year based on the Consumer Price Index.
However, while the existing abatements are offset by the state, the town would shoulder the cost associated with the additional abatements. Town Administrator Nick Breault said the additional abatements would cost the town about $117,213 over the $196,236 the existing abatements cost the town. This represents about $20 more per taxpayer.
Future reforms to the veterans’ abatement structure are planned, but Sasen said the committee on this is in its infancy and no discussions have been had yet on how they might affect the amount municipalities absorb. The board discussed whether opting into the additional abatements would be permanent. Breault theorized the vote could be rescinded in the future if the reforms led to a financial burden for the town.
The town could also opt to provide a tax abatement to the surviving parents or guardians of military members who died in the line of duty, known as Gold Star parents. This would also be a town-funded option, costing taxpayers about $1.30 annually. Gold Star spouses are already eligible for the abatements.
Select Board member Michael Squindo said that of the options, he favored the Gold Star parents. “Somebody loses their kid in an act of war, that’s something we need to recognize,” he said. He also noted it would have little impact on taxpayers.
Select Board member Marc Ducey said the board needed to take time to consider the potential financial ramifications of opting into the HERO Act.
A vote at Town Meeting would be required to implement any of the options.
