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<title>PROPERTY TAX RATES</title>
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<p class=MsoTitle>PROPERTY TAX RATES</p>

<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:Arial;
color:black'><br>
</span></b><span style='font-size:11.0pt;font-family:Arial;color:black'>Three
factors determine the property tax rate.<o:p></o:p></span></p>

<p class=MsoNormal><span style='font-size:11.0pt;font-family:Arial;color:black'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>

<p class=MsoBodyText style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1;
tab-stops:list .5in'><![if !supportLists]>1.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span><![endif]>The property tax levy.</p>

<p class=MsoBodyText style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1;
tab-stops:list .5in'><![if !supportLists]>2.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span><![endif]>The total assessed value of the community.</p>

<p class=MsoBodyText style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1;
tab-stops:list .5in'><![if !supportLists]>3.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span><![endif]>Classification.<br style='mso-special-character:line-break'>
<![if !supportLineBreakNewLine]><br style='mso-special-character:line-break'>
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<h1>PROPERTY TAX LEVY</h1>

<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:Arial;
color:black'><br>
</span></b><span style='font-size:11.0pt;font-family:Arial;color:black'>The tax
levy is the amount of money to be raised by the property tax. Each year the amount
to be raised must be determined in accordance with Proposition 2 ½. This is
computed by taking the total of the previous year's tax levy increased by 2 ½
percent, plus overrides, exclusions, and growth. Increases due to growth are
based on the increased value of new developments, additions, renovations and
other growth in the tax base that is not the result of an increase in value due
to market forces. An example of other growth would be a formerly tax exempt
property which becomes taxable. The purpose of this provision is to recognize
that new development results in additional municipal costs.<br>
<br>
A debt exclusion is that amount of money needed to pay the principal and
interest on debt incurred for special projects approved by referendum for
exclusion from Proposition 2 ½ limits. The sewer projects are the only projects
currently excluded.<br>
<br>
<b>DETERMINING THE TAX RATE<o:p></o:p></b></span></p>

<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:Arial;
color:black'><br>
</span></b><span style='font-size:11.0pt;font-family:Arial;color:black'>The tax
rate is calculated by dividing the total amount to be raised by the total
assessed of all property divided by 1,000.<br>
<br>
Tax rate = Tax Levy (or net amount to be raised)/Total Assessed Value/ 1,000<br>
<br>
This rate is expressed in terms of dollars per 1,000. For example if a home is
assessed for $350,000 and the tax rate is $14.83, the tax bill would be
computed as follows:<br>
<br>
$14.83 x ($350,000/1,000) = $5,190.50<br>
<br>
Stockbridge does not use a split tax rate, which means some of the tax burden
is shifted from residential to commercial property. The Town chooses not to
shift the rate because the commercial segment comprises less than 5% of our
total valuation and any shift of tax burden from the residential class would be
detrimental to their existence. <br>
Generally, if values are rising, the tax rates will drop; conversely if values
drop, the tax rates will rise.<br>
<br>
The amount to be raised through taxation is determined by Town Meeting and the
provisions of Proposition 2 1/2. The tax shift, the tax rate, and the
residential exemption are voted on every year by the Board of Selectmen.</span></p>

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