Question:

“Will the tax rate be set for the fiscal year that began on July 1?”

Answer:

Even though the town’s fiscal (financial) year begins on July 1, tax rates are traditionally set in the fall. 

This is because town financial officials have to “close” out the previous fiscal year’s  accounting records, open the new fiscal year’s accounts, and also determine the amount of “free cash” (budgeted but unspent funds from the previous year plus revenues coming in higher than originally forecast) that is available.  On the Assessors’ side of things, we are out determining the amount of “new growth” (newly built or  remodeled property never taxed before) during the past fiscal year and calculating the assessed valuations for the new fiscal year.  For residential property (88% of Holliston’s tax base), this means analyzing property sales in town that took place 18 months to two years ago to see how they affect individual valuations.

Once these tasks are completed, the Massachusetts Department of Revenue (DOR) has to approve all these calculations. Once the DOR does, the Select Board must hold a public “classification hearing” to discuss the overall increase or decrease in the town’s valuation as well as whether to have a single or dual tax rate. The tax rate is determined by dividing the amount of money to be raised by property taxes by the overall value of all property in town. The tax rate must then be certified by the DOR.