Woburn's Magnificent Tax Base


As Woburn residents are abundantly aware, the City's highly-prized location is astride two major interstate highways. Zoning decisions by various City Councils over the years have caused vast tracts of local land along these highways, including TradeCenter 128, to be zoned for business and commercial purposes. Additionally, Woburn's commercial property tax rate is two and one-half times greater ($26.10 per $1,000 in FY 2010) than its residential property tax rate ($10.32 per $1,000 in FY 2010). Accordingly, Woburn receives far more non-residential tax income, on a proportionate basis, than the vast majority of other communities. Its much-acclaimed school system is the envy of many other communities.

 

 

Woburn's total tax revenue during Fiscal Year 2010 from all sources was nearly $83 million, according to Massachusetts Department of Revenue publications. Commercial and industrial property owners collectively pay $42.2 million in property taxes, or almost half of the total tax levy, even though their collective assessed value of $1.62 billion is only about 29 percent of Woburn's total taxable base ($5.56 billion).


Breaking this down in the two major categories of real property demonstrates why Woburn's residential taxes are so much lower than almost all of its greater Boston neighbors:

 
Assessed Values
Total Tax Revenue
Residential
$3,942,319,569 (73%)
$40,684,738 (52%)
Commercial
$1,444,540,531 (27%)
$37,702,507 (48%)
Totals
$5,386,860,100 (100%)
$78,387,245 (100%)

 

 
   

The various commercial properties owned and operated by the Cummings organization in Woburn paid real estate taxes in FY 2010 to the city of Woburn totaling $4,845,623. The total real estate taxes paid by Cummings Properties firms alone was greater than 6 percent of all real estate taxes billed by the city of Woburn in FY2010. This total paid by Cummings interests was also almost 13 percent of all commercial real estate taxes billed by the City for FY2010.

Cummings currently employs 320 regular full-time employees, including many from Woburn. More importantly, there are approximately 5,700 people employed in the many properties leased by Cummings in Woburn.

When TradeCenter 128 is completed and fully leased as a first-class office building, the combined Court building and general office space will generate additional taxes to the City in excess of $700,000 annually, another significant increase in the City's fast growing commercial tax base. Importantly, this additional revenue is entirely on top of the tax revenue previously generated by the original Trade Center building, and will be counted as all new revenue and not limited by Proposition 2 ½ regulations.

 
 

 
Cummings Properties LLC, 200 West Cummings Park, Woburn, MA 781-935-8000