Last month, the Clinton Select Board held their annual tax classification hearing to set residential and commercial property tax rates for FY26. The North Central Massachusetts Chamber’s Director of Public Affairs Travis Condon testified on behalf of businesses, urging the Board to work toward a more competitive tax structure that would help Clinton attract business investment and create local jobs.

Following discussion, the Select Board voted unanimously in favor of maintaining Clinton’s current tax shift at 1.5 or 150 percent. The vote came after two separate motions for alternative shifts failed: one to increase the shift to 155 percent, supported by Vice-Chair Matthew Kobus and member Mary Dickhaut; and another to reduce the shift to 148 percent, supported by Select Board Clerk Sean Kerrigan and member William Connolly. Chair Julie Perusse served as the tiebreaking vote in both votes before the unanimous decision. At the 150 percent, the residential tax rate will be $12.98 per thousand and the commercial and industrial will be $21.58 per thousand.

Understanding Tax Classification in Massachusetts

Tax classification often causes confusion among residents and business owners alike. Here’s how it actually works:

Massachusetts allows municipalities to choose between two property tax systems: a single rate or a dual rate (also called a “split rate”). Under a single rate system, both residential and commercial properties are taxed at the same rate per thousand dollars of assessed value. Under a dual rate system, first allowed in the state in 1979, commercial and industrial properties are taxed at a higher rate than residential properties, meaning businesses pay significantly more in taxes on the same property value.

The “shift” percentage refers to how much of the tax burden is moved from residential properties onto commercial and industrial properties. When Clinton maintains a 150 percent shift, it’s shifting a substantial portion of the tax burden onto the business community. Massachusetts law allows municipalities to shift up to 175 percent of the burden onto commercial and industrial properties.

In Clinton, at the current 150 percent shift, the residential tax rate is $12.98 per thousand dollars of assessed value, while commercial and industrial properties pay $21.58 per thousand – a significant premium that applies before a business owner invests a single dollar in improvements or hires a single employee.

Why Balance Matters for Everyone

The question isn’t whether to shift a few dollars between property classes in any given year. The question is: What tax policy will help Clinton grow its commercial tax base, attract investment, and create jobs?

Communities with more competitive tax rates attract more business investment. More businesses mean more jobs for Clinton residents, more customers for other local businesses, and ultimately a larger commercial tax base. When the commercial tax base grows, it generates more total revenue for the town – which benefits everyone, including residential taxpayers.

Right now, Clinton’s split rate puts businesses at an immediate competitive disadvantage. A commercial property owner in Clinton pays higher property taxes than they would for the same property in a neighboring community with a lower shift or single tax rate – before making any improvements, before hiring any employees, before generating any economic activity. That higher tax burden exists simply because of the property’s classification, making Clinton less attractive for business investment compared to surrounding communities.

Over time, maintaining a high split rate creates a troubling cycle: the higher tax rate discourages commercial property owners from investing in improvements or expansions to their properties, knowing any increase in value will be taxed at the premium rate. Meanwhile, businesses choose to locate or expand elsewhere, existing businesses leave or close, and new investment goes to more competitive communities. As the commercial and industrial tax base shrinks, the town must either cut services or shift even more burden onto remaining taxpayers – including residents. This is exactly why other North Central Massachusetts communities have been moving toward single tax rates or more balanced splits: they recognize that attracting and retaining businesses ultimately eases the tax burden for everyone.

Moving toward a single tax rate isn’t about giving businesses a break – it’s about creating a level playing field that helps Clinton compete for the investment and economic growth that strengthens the entire community. A growing commercial base means a more stable revenue source for the town and less pressure on residential taxpayers to make up shortfalls.

Why Tax Competitiveness Matters

In his testimony, Condon emphasized that Clinton’s tax structure directly impacts the town’s ability to compete for business investment. The economic landscape has become increasingly challenging for local businesses, with rising costs, tight labor markets, and competition from other states making it harder to attract and retain businesses.

The Chamber has consistently advocated for Clinton to narrow the gap between commercial and residential tax rates over time. In 2018, a special tax classification task force recommended that Clinton gradually reduce the split with the long-term goal of reaching a single tax rate to make the town more competitive for business investment.

Several years ago, the Select Board had been moving in that direction, gradually reducing the shift. However, recent votes over the past several years have maintained the gap rather than continuing progress toward greater tax competitiveness.

The Path Forward

The Chamber recognizes the difficult decisions facing Clinton’s elected officials and appreciates the town’s ongoing efforts to support economic development. While we appreciate the Select Board’s decision to maintain the current split for FY26 rather than to adopt the earlier motion to increase the rate, we believe that narrowing the commercial/industrial tax gap is essential for Clinton’s economic future.

A more competitive tax structure helps attract business investment, creates employment opportunities for Clinton families, grows the commercial tax base, and ultimately provides a more stable financial foundation for the entire community. As Condon emphasized in his testimony, “This isn’t just about businesses—it’s about employment opportunities for Clinton families, growing the commercial tax base through new development, and easing the tax burden on residents.”

The Chamber was the only business and economic development organization to testify at the hearing, ensuring that businesses had a voice in this critical conversation about Clinton’s economic competitiveness. We will continue to advocate for policies that position Clinton—and all communities in North Central Massachusetts—to compete for the investment and jobs that strengthen our regional economy.

The Chamber would like to thank Select Board Clerk Sean Kerrigan and member William Connolly for their support of working toward a more competitive tax structure.

For more information, please contact Travis Condon, Public Affairs Director at 978.353.7600 ext. 224 or via email at . 

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