How does new development (residential and/or commercial) impact my tax bill? (11/19/2023)
New development (residential and commercial) expands the tax base (total valuation) so the total taxes needed are divided more ways. In the simplest terms the tax rate is equal to the funding approved for the school/town/county divided by the total assessed value times 1,000. Changes to the approved funding and/or assessed value results in changes to the tax rate. Between tax year 2022 and tax year 2023, Barrington added almost $30,000,000 in new value (from $1,415,742,739 to $1,444,907,207). Much of this value came from the apartments across from the middle school and the residential development behind the town hall.
In a vacuum, increased tax base would reduce the tax rate and tax bills, but the other tax rate impact factor is approved funding for the school/town/county. Inflation and changes to the level of service provided increase requests for funding. Over time new development (especially residential) necessitates increased services which increases the total taxes needed. Commercial development is generally attractive as an expansion to the tax base because (by dollar spent) 74% of taxed services are education and commercial development does not directly draw on those services. Through zoning, development agreements, and other tools, Barrington continues to seek commercial development in appropriately zoned areas. Barrington recently sold an additional lot to Turbocam on Redemption Road where a 30,000 square foot facility valued at nearly $2 million was built.