Acton’s high property taxes seem to be depressing Acton’s house values according to data provided by the League of Women Voters. From 2000 through 2008 Acton’s single family house has increased less than homes in adjoining towns, while Acton’s single family tax bill has remained the highest. The LWV data shows that Acton has the highest tax bill of Acton, Boxboro, Littleton, Maynard, and Stow, the only towns they compared.

	Acton	Boxborough	Littleton	Maynard	Stow	Avg.
% Incr. in Ave. SF Val. 00-08	78.15%	85.91%	85.91%	108.95%	90.93%	90%
% Incr. in Ave SF Tax bill 00-08	57.31%	55.72%	55.72%	55.14%	55.14%
House value	$523k	$565k	$409k	$354k	$471k
Tax Bill	$8,051	$7,998	$5,163	$4,721	$6,938

Tax bill and house price information is confirmed by data from the Massachusetts Department of Revenue. The LWV data is limited to five towns at this point. If a source for ten year data for more towns is found, ActonForum will publish it as it becomes available.

The impact of higher taxes on house prices cannot be precisely calculated, but it appears to be a factor. The impact on house prices occurs when a new family buys a house in Acton. The calculation for a mortgage is based on the monthly payment, and that includes the mortgage plus taxes. A family considering Littleton vs. Acton, for example, would have to pay about $240 per month more to live in Acton, and that would enter into their calculation.

Many other factors besides cost enter into each family’s calculation to be sure. The great Acton schools are a factor for some families, for example. Location to work is another factor. Nearby family is another factor.

Consider for a moment if Acton’s average housing price had increased at the average rate of the other towns in the LWV comparison. Acton’s housing prices would have increased as much as 12% over that time period. For discussion purposes it could have increased $62,000 more than it actually did.

This analysis was produced in response to an Acton selectman who published a letter in the Beacon asserting that higher property taxes lead to higher property values, although no data has been presented to support that assertion. The LWV has provided data that seems to support the opposite conclusion; namely that higher property taxes seem to depress housing values.

Clint Seward is a twenty year plus Acton resident and can be reached at cseward@verizon.net.