Tax Classification
Tax Classification
In a 1978 referendum, the voters allowed the classification of property according to use and authorized cities and towns to adopt different tax rates for different classes of property, within certain parameters. The original intent was to provide a mechanism to preserve the proportion of property taxes being paid by the commercial / industrial sectors because initial 100% revaluations were threatening major increases for residential taxpayers.
Pursuant to this amendment, the Department of Revenue (DOR) authorized the adoption of 2 tax rates. One for residential and open space classes (RO) and 1 for commercial, industrial, and personal property (CIP).
In 1988, rising residential values were resulting in a significant shift of the tax burden to homeowners in some communities. Legislation changed the maximum shift to business property to 75% as long as the residential burden is at least 50%. It also stipulated that the residential share of the total levy cannot be lower than its lowest share since the community's values were first certified at full and fair cash value.
In a 1978 referendum, the voters allowed the classification of property according to use and authorized cities and towns to adopt different tax rates for different classes of property, within certain parameters. The original intent was to provide a mechanism to preserve the proportion of property taxes being paid by the commercial / industrial sectors because initial 100% revaluations were threatening major increases for residential taxpayers.
Pursuant to this amendment, the Department of Revenue (DOR) authorized the adoption of 2 tax rates. One for residential and open space classes (RO) and 1 for commercial, industrial, and personal property (CIP).
In 1988, rising residential values were resulting in a significant shift of the tax burden to homeowners in some communities. Legislation changed the maximum shift to business property to 75% as long as the residential burden is at least 50%. It also stipulated that the residential share of the total levy cannot be lower than its lowest share since the community's values were first certified at full and fair cash value.