Property taxes for some New London residents could decrease if the budget Mayor Michael Passero presented to the City Council Tuesday is passed.
“We have worked very hard to build a budget that does not increase the tax burden on the property owners.”
It’s possible because the city has seen increased revenue over the last handful of years due in part to new development and new building permits, according to Passero.
Plus, a state-required revaluation of city properties last year increased the grand list by 9.4 percent, he said.
That increase caused Passero to propose dropping the mill rate from 43.62 to 39.9 mills.
City Finance Director David McBride said based on the new median assessment of property values, property taxes on the majority of single family homes, condos, or industrial properties will decrease.
A single-family home valued at $109,550 would pay $4,371, a $212 drop in property taxes, according to an estimate from the city.
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“If it’s $100, $200 less, it’s not going to be a life-changing decrease, but we can certainly find things to spend it on,” said New London resident Phil Michalowski.
But for people who own a commercial property or a multi-family home, property taxes are likely to go up.
The owner of a multi-family home valued at $102,900 would end up paying $4,106 in property taxes, a $365 increase.
Linda DiPalma owns 60 to 66 Bank Street, which houses her Otto’s Barber on Bank and separate business Nora Cupcake Company.
Based on a city estimate, she might have to pay $2,400 more in taxes.
“I won’t be able to do things maybe to take care of the building, unfortunately. You know they’re old. This building is almost 200 years old,” DiPalma said.
