SPRINGFIELD, Mass. (WWLP) - Good news for homeowners in Springfield. Next fiscal year they'll be paying less property taxes. But lower property taxes don't come with all positives.
Property taxes have gone down partly due to declining property values.
The Springfield City Council unanimously voted Monday night to adopt Mayor Domenic Sarno's proposed tax rate, which will decrease a single-family tax bill by on average $146.
Ann Marie Chatman of Springfield said "I feel really good about that. Property taxes are very high, so very grateful that it is going down. Every little bit helps."
During fiscal year 2013, homeowners will pay $19.71 per $1,000 valuation. Commercial and industrial building owners will pay $38.98 per $1,000 valuation.
The new rate is the lowest rate since 2009. It also means $2 million less in revenue for the City.
But Springfield Chief Financial Officer Lee Erdmann told 22News, it will not affect the city's budget.
He told 22News "Fortunately, the budget adopted did anticipate this decrease in the levy, so we can maintain a balanced budget, and there will be no negative service impacts."
For business owners though, it's not all good news. The lower rate means their property values have declined in 2012.
Jeffrey Ciuffreda, Executive Director of Springfield Chamber of Commerce told 22News "When businesses want to expand, and they want to go to bank for a loan to buy a new piece of equipment, the bank's going to look at what your assets are, and the biggest asset is your real estate."
Richard Allen, Chairman of Board of Assessors, told 22News it is unclear what will happen in 2014. It is too early to tell if property values will continue to decrease.