Boston homeowners to see property tax hike

The tax bill for the average Hub homeowner will rise by $173 next year as the city tries to fill the gap left by a 5 percent drop in the assessed value of single-family homes in Boston due to the weakened housing market, according to the city.

The residential tax rate for fiscal 2010 is expected to be $11.88 per $1,000 of valuation, compared to the 2009 rate of $10.63. The rate for business properties will rise from $27.11 in 2009 to $29.38 per $1,000 of assessed value.

“If we didn’t increase the tax rate, it would lead to a significant reduction in the city’s property-tax revenue at a time when local aid and other revenue are in decline. That would be bad,” said Ron Rakow, Boston’s commissioner of assessing.