[Ed note: My Southborough accepts signed letters to the editor submitted by Southborough residents. Letters may be emailed to mysouthborough@gmail.com.
The following letter is from Carl Guyer]
To the Editor:
The prospect of Costco establishing a new facility in Southborough presents an excellent opportunity to illustrate how the town’s current commercial real estate tax policy affects municipal revenue. In 2024, Southborough’s residential property tax rate was higher than that paid by 87% of homeowners across Massachusetts, while its commercial tax rate was lower than that applied to 72% of commercial properties statewide. This imbalance significantly limits the revenue Southborough derives from its commercial sector. The following table compares commercial tax rates for existing Costco locations across Massachusetts to highlight this effect.
As the comparison shows, regardless of the valuation ultimately assigned by Southborough’s assessor, the town will “miss the boat” on realizing the full revenue potential that a new Costco could generate. With 78% of the commercial property in Massachusetts within split tax rate communities, these results are hardly surprising. As noted earlier, the potential Costco development simply underscores a broader issue — Southborough’s comparatively low commercial tax rate limits the town’s ability to capture the financial benefits that similar projects deliver elsewhere.
Carl Guyer,
146 Middle Road
