City Council Delays FY26 Tax-Rate Decision, Weighs Higher Residential Exemption

By Neil Zolot

An agenda item at a Special Meeting of the City Council held on Monday, November 24, to set the Residential Tax Factor and the Commercial/Industrial/Personal Property (CIP) Tax Factor for Fiscal Year 2026 was tabled until Monday, December 8. “The Mass. Department of Revenue has not certified the rates yet, but we’re required to open a Public Hearing,” City Clerk Sergio Cornelio explained. “We can keep it open so members of the public can speak December 8.”

Under a Uniform Tax rate each class of property pays a share equal to its share of the total city value, a Factor of 1, but communities can shift the burden from one classification of property owner to another, from residents to CIP. (Personal Property covers items in commercial and industrial parcels, like office equipment and, even, barbershop chairs.) Most small towns without much business have a Factor of 1. Cities with larger businesses have a tax base shift some of the burden.

In Fiscal Year 2025, Everett had a Residential Tax Factor of .737612%, the minimum factor. In other words, for every $2 raised in taxes residents paid $.73-.74 and CIP taxes were $1.26-1.27.

At the regular City Council meeting that followed the Special Meeting, Ward 3 Councillor Anthony DiPierro introduced “a resolution requesting the City Council to investigate the feasibility of increasing the Residential Tax Exemption from 25% to 26-35% per Massachusetts General Laws.”

The Tax Exemption is the amount taken off the tax bill for homeowners that live in their homes in their community. It reduces the amount they are taxed on. The Residential Tax Factor is the formula used to get the Residential Tax Bill. About 4,000 parcels qualify.

Residents would be taxed at .73% of each dollar, with the dollar value of their home decreased for tax purposes.

“The state allows municipalities to go to 35%,” DiPierro said.” I don’t think it’s a good idea to do it this year until we study the implications.”

Given a positive reaction from Ward 5 Councillor and Mayor-Elect Robert Van Campen, the matter was referred to the new administration, which will take office in January.

After the meeting Ward 1 Councillor and Councillor-at-Large-Elect Wayne Matewsky said he is in favor of raising the Tax Exemption number.

The transition to a new administration, which has not occurred in 18 years, is causing some frustration. Councillor-at-Large Stephanie Smith said her requests for an update for the date of the overflow trash day have been unanswered.

Councillor-at-Large Guerline Alcy Jabouin again expressed continuing frustration at not receiving information on the process to ensure American Rescue Plan Act (ARPA) funds for local organizations are being properly advertised and distributed and the Administration not providing a status on ARPA grant application decisions and information. “We can’t do our job because the information we need is not being provided,” she said. “We’ll have a new Mayor, but the sitting Mayor is still responsible to answer questions.”

Jabouin asked if there is way to bypass the Mayor, but Ward 2 Councillor Stephanie Martins told her there isn’t.

Smith added, “Small business owners were and are counting on ARPA funds to pay rent. “They need that money,” she said. “The administration has to finish the job.”