With a significant residential tax increase looming over the next five years, the Select Board at its meeting Tuesday discussed the challenges faced by the Senior and Disabled Tax Relief Committee and voted 4-0 to keep the residential and commercial tax at a single rate.

Sue Kurys, the Tax Relief Committee (TRC) chair, explained that the tax relief program provides assistance to qualified homeowners who are seniors or are living with a disability who have exhausted other measures of assistance. If eligible for aid, they receive tax credits to help partially offset their property tax bills. A typical recipient lives on a total gross annual income of $34,000 and has lived in Hopkinton for about 30 years.

“It helps our community stay diverse and vibrant and gives us a broader base of types of homeowners,” she said. “We’re unique in that we’re controlled at the local level.”

One challenge the committee faces is that the program is “completely funded by voluntary donations from the community.” Given the tight economy, Kurys said she expects the number of qualifiled applicants to increase while donations subside. Last year, the number of qualified applicants rose by 45%, and Kurys expects the number to increase by 35%-40% this year.

There is a box on the form included with the tax bill if residents would like to contribute. But Select Board vice chair Mary Jo LaFreniere pointed out that people may not be inclined to donate if they are paying a hefty bill. As a former TRC member, she called the amount of awards and donations given over the years “an up-and-down sleigh ride.”

Also, a major unnamed corporate donor has decided not to contribute to the program this year, which likely will decrease the amount of money available to the program by 50%. This shortfall will cause the amount of tax relief awards to decrease by 27% from fiscal year 2024.

“The conundrum, of course, is that we’re a town committee,” Kurys explained. “We cannot draw on taxpayer dollars. We do receive donations from the community, but we can’t ask for them.”

Consequently, the program will shrink over time, and the amount of awards will not be able to keep pace with changing economic conditions, she added. If the program stays at FY 24 levels and does not receive more donations, the average recipient will get an average award of $350 toward a tax bill of about $7,900.

Kurys suggested going back on a payment in lieu of taxes (PILOT) program. A past issue with that was reliance on a single donor.

Select Board chair Brian Herr suggested increasing public awareness of the ability to contribute to this program.

“If we explain that over and over again to the town, I think we might get a little bit more traction,” he said.

Member Joe Clark pointed out that his tax payments are paid through the mortgage payment, so he never saw the form Kurys described. He speculated that many homeowners aren’t aware of the form or the ability to donate.

Member Amy Ritterbusch asked about the ability to donate online. Kurys said the link is on the TRC page of the town website.

LaFreniere suggested that Kurys go before the Hopkinton Chamber of Commerce and have a table at upcoming community events such as the Winter Farmers Market. Ritterbusch suggested setting up a nonprofit friends group like the library has.

Tax levy rates to remain at single rate for residential/commercial

The board voted 4-0 not to split the tax rate for residential and commercial properties, saying it would hurt the commercial base and deter new businesses from coming to town.

Principal assessor John Neas presented the board with several options for determining the tax levy rates for homeowners and businesses. He explained that the town total taxable value is about $6.75 billion, of which 83% is residential and 17% is commercial. The residential tax levy provides most of the money for the town’s general fund. This has been a consistent rate over the years.

Discussion revolved around the possibility of splitting the tax rate and raising the commercial and industrial tax percentage in order to decrease the tax burden on residents. Herr noted that because the town lacks a strong business base, a higher commercial and industrial tax rate may drive companies out of Hopkinton. This would shift the tax burden back onto residential taxpayers at even higher rates.

A split rate didn’t work several years ago when it was tried once, LaFreniere said. Town Manager Elaine Lazarus also recommended not splitting the tax rate.

The board also voted 4-0 not to implement an open space discount, not to implement a residential exemption or a small commercial tax exemption, and to approve for LA5 as presented, which includes the tax rates previously discussed.

Special Town Meeting Monday

The Special Town Meeting will be held on Nov. 18, with the most contentious item being whether the town will vote for a zoning plan to comply with the MBTA Communities Act. The Planning Board was deadlocked at its last meeting as to whether to recommend either of two plans under consideration. It is meeting Wednesday at 4 p.m. to further discuss the matter.

If the Planning Board chooses to recommend a plan, the Select Board will meet briefly before the STM to decide whether it will support a plan.