Franklin Matters: Frequently Asked Questions: FY 2026 Override -> Questions 37

Monday, May 12, 2025

Frequently Asked Questions: FY 2026 Override -> Questions 37 - 40

Frequently Asked Questions - shared from the Town of Franklin FY 2026 Override Information page. There are 40 and a form to ask another question if it is not already listed there -> https://ma-franklin.civicplus.com/Faq.aspx?TID=41

37. Were other, lower override amounts considered?

A $6.8 million dollar override was considered last year and did not pass. This lower amount of $3,862,672 keeps the budget at level service and came from the Joint Budget Subcommittee listening sessions discussions. The Town Council decided to give residents the opportunity to vote on an override budget that would maintain level services across all departments.

38. When and how often has Franklin passed overrides?

Franklin last approved an override in Fiscal Year 2008 in the amount of $2,700,000. The Town put override ballot questions before the voters in 1991, 1997, 2005, and 2025 and none of them passed. Please find historic ballot question information on the DLS website.

39. The ballot question requests to access additional real estate and personal property taxes. What personal property taxes are being considered?

Each year municipal Assessors assess personal property taxes on all taxable personal property within each community. Personal property includes merchandise, furniture, machinery, equipment, etc. but there are a number of exemptions. Please note that Personal Property in your domicile is Exempt; also note that Registered Motor Vehicles are not included in Personal Property, but are subject to a separate Motor Vehicle Excise Tax. For more information, please see Personal Property Taxation FAQs.

A successful override will be added to the total tax levy to be borne by all taxable real and personal property. In FY 2025, the valuation and therefore the tax percent portions are as follows as shown on our MA DOR Tax Rate Recapitulation sheet:
Property Class
Residential 81.0280
Commercial 6.5317
Industrial 9.3477
Personal 3.0926
(business assets)

Total 100.0000

40. What impacts do proposed development have on the Town's operating budget?

Residential, commercial and industrial development can increase the tax base, leading to more revenue in the town operating budget. However, this revenue may not be “received” within the tax base for weeks or months up to a year. It is not in the form of a payment, but rather through the valuation of the assessed properties. Each individual development, or parcel improvement, made to a property (such as a redevelopment), is unique and is assessed on an individual parcel basis. Any current, proposed, or permitted development will not help the overall FY 2026 budget deficit. Only the additional qualifying physical improvements in place since July 1, 2024 through June 30, 2025 may contribute to the tax levy base, and the annual estimate of this amount has already been factored into the FY 2026 budget work.

In accordance with the provisions of Proposition 2 ½ Massachusetts uses a mechanism called "New Growth" to account for the increased tax revenue from new construction, qualifying renovations (not repairs), and added personal property (taxable business assets) which are then added to the annual tax levy. The Town is required to have the MA DOR certify its New Growth and its full valuation annually prior to setting the Tax Rate. New development can lead to higher property valuations, resulting in more tax revenue for municipalities, however, market level value changes do not contribute to growth. Municipalities do add the increase in tax revenue due to New Growth to their Tax Levy Limit, effectively increasing the amount they can collect in taxes. While new development can provide a much-needed boost to municipal revenue, it's crucial to carefully manage the associated costs and ensure that municipalities can effectively meet the needs of any population growth. The time to define the estimated valuation, estimated tax levy revenue and potential costs to the town (schools, infrastructure, public safety, etc.) of a proposed development is during the project’s public hearing process.

Oftentimes, a developer is required to compensate the town in the form of mitigation to address impacts of the project. The Town may have revenue from those conditions, but these monies are not included in the town operating budget. The Town Planning Board, Zoning Board of Appeals, and Conservation Commission all work with applicants on project mitigation during the public hearing process and these monies are spent under strict restrictions through a special revenue account.

Typically, during a permitting hearing for a project, a proponent may have estimated information on project revenue generation or costs to the town (schools, infrastructure, etc). However, a community never actually knows what the project valuation, revenue or costs are going to be until reality occurs. Market forces play a significant role. Furthermore, a project may be permitted, but may not actually break ground for years, experience delays, or the project may be phased in over several years, or even decades. Hence, the revenue from a project does not materialize until there is work in progress, “occupancy” and/or by discovery during state-mandated assessor property evaluations. Some development may not get captured for several years depending on the circumstances.

The Assessors’ Office can be reached through their FranklinMA.gov website for more detailed information. The Board Members or the Staff would be happy to discuss property assessment. They may be contacted by assessors@franklinma.gov email and/or by phone (508-520-4920) during normal business hours.