HAMPDEN – The Board of Selectmen voted on four tax rate options available to the town of Hampden.

At a hearing during the Nov. 21 regular meeting of the Board of Selectmen, the Board of Assessors offered information on the current tax rate options available to the town under the property tax classification.

During the outlined informational session, Principal Assessor Kelly McCormick provided an overview to the board.

All of the values, both real and personal property for the fiscal year 2023 have been approved by the Department of Revenue. The town’s valuation increased by $80.9 million between fiscal years to the current $803 million. More than $13 million of the increase is attributed to new growth with Hampden with the remainder from market increases. Single home values have increased by 12 percent in the last year. Homeowners are realizing a tax bill increase of less than 1 percent.

After presentation, the board voted to adopt a minimum residential factor of 1, resulting in a single tax rate. There will be one rate for residential properties and another higher rate for the commercial, industrial, and personal property classes. The residential class accounts for approximately 85 percent of the property in Hampden, while the commercial, industrial, and personal property classes combined account for approximately 15 percent, according to information provided by the town. Adopting a minimum residential factor of less than 1 would have resulted in a split tax rate. Historically, Hampden has always adopted a single tax rate.

The board also voted to take no action on three exemptions – an open space discount, a residential exemption and a small commercial exemption.

The town currently does not have any properties that fit the classification to be eligible for an open space discount.

The residential exemption would have shifted the burden within the residential class onto higher priced and non-owner-occupied homes. The town of Hampden indicated taxpayers would not benefit from this exemption due to the majority of residential properties being owner-occupied and this exemption is adopted by communities with a large number of vacation homes.

The small commercial exemption would have shifted the burden from qualifying small businesses to other commercial and industrial properties. Those who could qualify for this exemption are commercial parcels with a valuation of less than $1 million, that are occupied solely by businesses, and have an average of no more than 10 people employed annually. Out of 40 commercial properties, fewer than 10 may qualify for this exemption, according to the town. This exemption would have lowered the taxable valuation on the properties that qualify by 10 percent and shift the remaining tax burden between all other commercial and industrial properties. For the few properties that may qualify, the one who would directly benefit from this exemption would be the owner of the qualifying properties, not the small business owner, the town noted.