Throughout the years, the Select Board has been asked by the Board of Assessors the same question: Should Wareham split the property tax rate, putting more of the financial burden on businesses?

At its Tuesday, Nov. 21 meeting, the Board opted to keep the single tax rate for residences and businesses, despite multiple members voicing the want for a future when a split rate is possible.

Director of Assessment Jacqui Nichols recommended the town maintain the single tax rate. 

The current ratio of property in Wareham is 85.5% residential and 14.5% commercial, industrial and personal property, according to Nichols. This figure has remained relatively the same over the past 14 years.

Nichols said a split rate is generally only considered when the ratio is closer to 80% to 20%. If the non-residential property level is anything lower than 20%, a split rate is not going to give residences much tax relief. 

“We have not yet reached that threshold,” she said. “As a matter of fact, we seem to be inching upwards a little bit with the residential and that’s due to the market that we have seen over the past years where the residential has climbed much higher and faster than the commercial.”

“A split rate does not increase the revenue, it simply shifts the burden on to the commercial class,” Nichols said. “A shift would make Wareham less attractive to new development and small business relocation and it would also impact summer cottage residents.”

She added, “Many of the town's commercial properties are leased so landlords would typically pass the increases on to tenants thus impacting our smaller businesses, which are typically locally owned.”

Nichols said a small commercial exemption would be necessary to protect smaller businesses, which would take multiple years to establish due to the need for those businesses to go through an application process.

In addition, she said commercial property makes up approximately 8% of the town. The small commercial exemption would shift the burden onto industrial property, which only makes up around 2% of the town.

Nichols added there is simply not enough business in town to withstand that tax burden.

She said that does not mean a split rate wouldn’t eventually be possible. 

“We should develop some more industrial and get a good base for what we want to do in the future,” she said. 

Select Board member Tricia Wurts asked if a split rate should be considered given the burden future sewer costs will put on residents. The recent Fall Town Meeting authorized the Sewer Commission to borrow $36 million for repairs to the sewer plant, which raised rates for users. More costly repairs will be necessary in the near future, according to the Commission. 

“I believe we as a citizen base — as a town government — have to find a way to make our citizens believe that we will pay back and give back a little bit to them when we can,” Wurts said.

Select Board member Alan Slavin responded to Wurts, stating both residential and commercial properties utilize sewer, and commercial properties tend to have higher sewer rates as they have multiple Equivalent Dwelling Units. 

Slavin added the types of businesses in Wareham are “where the economy has been the most vulnerable in the last few years.”

Select Board member Jared Chadwick said he is in favor of putting the burden on the “big box stores” as those businesses tend to be less willing to give back to the community. However, he said he understands those stores would not be the only ones affected by a split rate.

Despite the desire for a split rate, given the circumstances Nichols provided, the Board decided to maintain the single tax rate.

Nichols also identified a possible 2024 tax rate for the town at $9.23 per $1,000 of assessed property value. However, the number is not final because the town is still waiting on tax certification from the state. That rate would be 69 cents lower than last year's tax rate of $9.92.