How are my taxes determined?

The amount of taxes you pay is determined by the appropriations in the annual town budget. The town adopts a budget that reflects what services will be provided and the cost to provide those services. After the town adopts a budget, the amount of taxes to be raised is calculated in accordance with Proposition 2 1/2 and divided by the total taxable valuation of the town to determine the projected single tax rate. The Board of Assessors and the Board of Selectmen hold a public hearing called a Tax Classification Hearing to determine whether or not the town wants to shift some of the residential tax burden onto commercial properties, commonly referred to as a split tax rate resulting in commercial properties paying a higher tax rate than residential properties. The decision to have a single tax rate or a split tax rate is made by the Board of Selectmen.  All budget information is forwarded to the Department of Revenue for its review and approval. The tax rate is then finalized to raise the needed dollars to pay for town services