This is the time of year when local municipal officials, like the Select Boards in towns across the South Shore, conclude the annual process of property tax classification, making critical policy decisions that determine how the total property tax levy will be distributed among residents and businesses. This annual public hearing is mandated by Massachusetts General Law and is crucial because while it does not increase or reduce the total amount of money collected by the town, it determines how that predetermined burden is shared between property owners.
The Core Decision: Single Rate vs. Split Rate
The process begins when local Assessors classify all real property according to its use into four primary classes: Residential (Class I), Open Space (Class II), Commercial (Class III), and Industrial (Class IV). Personal property forms a fifth category.
The pivotal policy decision is determining whether to adopt a Single Tax Rate or a Split Tax Rate, formalized by the Select Board setting the Residential Factor (RF).
If the Select Board sets the RF at 1.0, a Single Tax Rate is adopted, meaning every property class pays a rate proportional to its assessed valuation share of the town’s tax levy.
If the RF is set to less than 1.0, a Split Tax Rate is implemented. This reduces the tax burden on Residential and Open Space (RO) properties, shifting the resulting cost onto Commercial, Industrial, and Personal (CIP) properties. State law restricts this shift, ensuring CIP classes typically cannot pay more than 150% of their proportional share.
Local Choices: Single Rates in Plympton, Halifax, and Kingston
The majority of municipalities use a single tax rate. For the towns featured in this paper, maintaining a single rate is the prevailing policy, driven by the size of their commercial tax base.
In Halifax, the Board of Selectmen already voted unanimously in September to adopt a single tax rate for Fiscal Year 2026, setting the Residential Factor at 1.00. This decision keeps residential and business properties taxed at the same estimated rate of 14.09 per thousand of assessed value. Principal Assessor Debbie Dean recommended the single rate, with the Selectmen noting a shift may drive away local “mom-and-pops”.
Plympton Selectmen also unanimously (2-0) approved maintaining a factor of one for Fiscal Year 2026 on November 17, taxing residential, commercial, industrial, and personal properties at the same rate. Residential property makes up 75% of the tax levy, with commercial, industrial, and personal property under 25%, a composition that led the Assessor’s Representative Holly Merry to deem a split rate “not recommended.” Plympton expects a tax rate of $14.26 for FY 26.
Kingston similarly sets a single tax rate for all classes, with the FY 2026 rate estimated at $12.83 per $1,000. Principal Assessor Maureen Clarke informed the Selectmen that residential properties made up about 88% of the tax base. Kingston held their tax classification hearing for FY26 on Tuesday.
Hanover’s Choice: Adopting a Split Rate to Share the Burden
In contrast, just north of us the Hanover Select Board voted to set a Split Tax Rate for Fiscal Year 2025. The board approved a split of 1.15, an increase over the previous split of 1.04, following public discussion. The Residential Factor was set to 0.9725. This resulted in a residential tax rate of $12.35 per 1,000 and a commercial tax rate of 14.60 per $1,000.
Hanover’s policy is controversial, partly because its commercial properties only make up approximately 15% of the tax base, while residential properties account for 85%. Les Molyneux, a member of their Board of Assessors, noted that some experts believe a split rate is truly effective only when the commercial base reaches around 30%.
Proponents of the shift, citing data showing that Hanover’s tax shift is significantly lower than that of other communities with similar commercial drivers, argue that large commercial entities like those along Route 53 disproportionately increase traffic and strain public safety services, requiring them to contribute a greater share to infrastructure. Opponents, including business owners, warned that the increased commercial tax rate, which they often pass on to tenants through leases, hurts small local businesses—the “mom-and-pops”—and makes Hanover less competitive than nearby single-rate towns like Norwell and Pembroke. In Plymouth County, currently only Brockton, Carver, Hanover, Middleborough, and West Bridgewater split the rates.
Rejected Exemptions Across All Three Towns
In addition to the core split/single rate decision, local officials considered three optional exemptions available only to local jurisdictions, opting to reject all of them:
1. Residential Exemption (RE): This option shifts the tax burden within the residential class from lower-valued, owner-occupied homes to higher-valued homes, rentals, and vacation properties. It is intended to help residents using the property as their principal residence. Halifax, Plympton, and Kingston rejected this exemption. Halifax noted it was inappropriate given the town has only about 50 second homes.
2. Small Commercial Exemption (SCE): This grants a tax reduction (up to 10% of assessed value) for commercial properties valued under $1 million occupied by businesses with 10 or fewer employees. The resulting cost is shifted only to larger commercial/industrial properties. Halifax, Plympton, and Kingston voted no on this option, partly because administering the exemption and tracking annual eligibility can be complex and burdensome for assessors.
3. Open Space Discount: This option reduces the tax levy paid by Open Space properties, shifting the cost exclusively to the residential class. Plympton, Halifax, and Kingston all voted no on adopting an Open Space Discount.
Since the tax classification decision is valid for only one year, this mandatory public hearing process will repeat annually, allowing Select Boards around the state to reevaluate their tax policies each fiscal year.