How much could a split tax rate lower residential taxes in Lancaster?
Photo by Josh Appel on Unsplash For January, everyone in Lancaster will receive a Quarter 3 Real Estate Tax bill that reflects your reassessed property value and a finalized FY2023 real estate tax rate. Before that bill goes out the Select Board will need to hold a "Tax Classification Hearing" where they will approve a "CIP Shift" ratio that could shift the tax burden away from residential property. Historically Lancaster has approved a "CIP Shift" ratio of 1.0 -- the effective tax rate for all property classes is the same. The state would allow us to approve a "CIP Shift" as high as 1.5. How would the average residential tax burden be affected if the Select Board approved a higher CIP Shift? Using our town's tax data for FY2022, which was the fiscal year that ended in June, I reproduced what the owner of a $350K residential property actually paid with a CIP Shift of 1.0, and what they would have paid with the maximum CIP shift ratio