South Hadley Residents Vote on Property Tax Override Proposals to Address Budget Deficit

South Hadley, a town in western Massachusetts, faces a $3 million budget deficit. Residents are scheduled to vote on Tuesday on two override proposals under Massachusetts law, which allow communities to exceed property tax limits to fund specific needs. These proposals aim to generate additional revenue for public schools and other town services.

The first proposal would raise $9 million, resulting in an average increase of $1,400 per year on property tax bills, according to the Daily Hampshire Gazette. For a single-family home valued at $417,000, this would raise annual taxes from $5,639 to $7,082.

The second proposal would raise $11 million, increasing average bills by about $1,700 annually, with taxes on the same home reaching $7,403 initially and potentially $8,477 after five years due to compounding increases.

Officials stated that the often-mentioned 50% increase refers to the town's projected growth in its overall tax levy over five years under the higher option, rather than a one-year spike. Actual bills may vary based on how much of the levy capacity the town uses.

Massachusetts ranks among the states with the highest property taxes, where homeowners pay an average of $7,900 per year, behind only a few Northeastern states including New Jersey and Connecticut.

Potential Impacts on Homeowners Homeowners could experience significant changes in their tax bills, issued in installments with larger increases typically later in the fiscal year.

Some residents have expressed concerns that the hikes could force them to sell their homes amid rising costs. For example, Stephen Frantz, an 82-year-old retired pathobiologist, told the Wall Street Journal that the increase would be difficult.