Lancaster-Maintains-Single-Tax-Rate-Following-Chamber-Advocacy

Lancaster Maintains Single Tax Rate Following Chamber Advocacy

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At its December 9, 2025 tax classification hearing, the Lancaster Board of Selectmen voted 2-1 to maintain the town’s single tax rate, rejecting a proposal to shift the tax burden onto the community’s small commercial and industrial base through a split tax rate. The North Central Massachusetts Chamber of Commerce testified in support of the single rate, leveraging the Assessors’ own analysis and regional perspective to demonstrate why tax shifting doesn’t make sense for Lancaster.

Select Board members Jason A. Allison and David R. Carr voted in favor of maintaining the single rate, while Selectman Ralph A. Gifford III voted in opposition. The decision preserves Lancaster’s competitive tax environment and positions the community to attract the commercial and industrial investment that creates jobs and strengthens the overall tax base.

Why This Matters

Lancaster’s commercial, industrial, and personal property base represents only 12% of total valuation. With such a small base, any attempt to shift taxes using a split rate would place disproportionate burdens on a small amount of businesses for minimal residential benefit. The town’s Assessors’ own modeling showed that saving residential taxpayers just $500 would require shifting 36% of the tax burden onto just 6% of the base that is commercial (largely small businesses) and 3% that is industrial. This concentration of burden would be economically counterproductive.

Several residents testified in favor of the shift to a split tax rate, arguing it would help reduce residential taxes without impacting businesses. The Chamber’s testimony addressed this misconception directly: tax shifting doesn’t generate new revenue. It simply moves who pays the same total levy. And when businesses facing dramatically higher rates choose to locate in neighboring communities with more favorable tax treatment, residential taxpayers end up bearing an even larger share of the burden.

In our regional experience, split tax rates drive businesses out over the long term, creating a downward spiral where the remaining tax base (both commercial and residential) must absorb the loss. Most communities in North Central Massachusetts maintain single tax rates, and those few that adopted split rates have either moved back to single rates or are actively working to eliminate them.

Advocacy in Action

The North Central Massachusetts Chamber of Commerce was the only chamber of commerce or business organization to testify at the hearing. Chamber President & CEO Roy Nascimento and Director of Public Affairs Travis Condon presented testimony grounded in data, regional experience, and economic reality, not political rhetoric.

This is advocacy in action.  The North Central Massachusetts Chamber of Commerce shows up at selectboard meetings, planning board hearings, and legislative sessions to do the work of advocating for our members and communities.

This year alone, Chamber advocacy efforts have included:

  • Advocating for fair tax rates in Lancaster, Clinton and other communities in the region
  • Testifying for pro-business zoning changes in Sterling
  • Testifying at the State House against large health insurance rate increases for businesses, against state electricity mandates that increase costs for businesses and consumers, and in favor of economic development and transportation funding for the region
  • Engaging with 27 municipal governments across the region on economic development policy

Lancaster’s decision to maintain its single tax rate is a win for businesses, residents, and the community’s long-term economic health. We’re grateful the Board carefully considered the data, regional trends, and the potential impacts on the entire community.

What’s Next

The Chamber will continue monitoring tax classification decisions across the region. Tax policy remains one of the most important tools municipal leaders have to either attract or repel business investment, and the Chamber will continue working with communities to advance policies that support economic growth and job creation.

If you’re facing challenges with local regulations, permitting, taxes, or other issues affecting your business, reach out to the North Central Massachusetts Chamber of Commerce. The Chamber may be able to help, whether that means connecting you with resources, working directly with municipal officials, or testifying on policies that impact our members. This is exactly the kind of advocacy work the Chamber does every day.

For more information, contact Travis Condon, Director of Public Affairs at the North Central Massachusetts Chamber of Commerce at 978.353.7600 ext. 224 or via email at .

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