Debt Exclusion By passing a Debt Exclusion (commonly referred to as a Debt Exclusion Override) a community can assess additional taxes to pay the debt service from bonding (principal and interest costs) for a specific capital project. These funds are used for capital expenses such as a new or renovated school. The additional amount is added to the Levy Limit for the life of the debt only. Thus, unlike overrides, debt exclusion overrides do not become part of the base used to calculate future years’ levy limits. The increase is temporary and only for the life of the bonds (which typically are 30 years).
City of Newton alternative tax collections 6
City of Newton: Alternative Revenue & Tax Collections
Category
FY20
FY21
FY22
FY23
FY24
FY25
FY26
Motor Vehicle Excise Tax $13.0M $13.3M $13.6M $13.8M $15.4M $13.7M $15.9M Interest & Penalties on Taxes $1.23M $2.25M $6.45M $1.38M $1.68M $889K $1.18M In Lieu of Tax Payments $712K $403K $2.33M $242K $122K $200K $122K Hotel Room Occ. Tax $2.15M $314K $1.16M $1.97M $2.26M $2.20M $2.25M Meals Tax $1.83M $1.35M $1.98M $2.38M $2.63M $2.50M $2.60M Cannabis State Tax $269K $362K $524K $648K $654K $600K $610K Building Permits Rev $9.0M $6.5M $10M $9.0M $7.5M $11.4M $9.81M Interest Income Rev $2.0M $500K $1.0M $9M $14M $12M $6.5M Parking Meter Rev. $1.1m $100K $800K $1.2M $1.1M $1.0M $1.1M Parking Viol. Rev. $1.06M $176K $630K $1.05M $1.05M $1.0M $1.05M
Chapter 70 Aid
$24.8M $24.1M $24.5M $26.2M $27.4M $28.6M $29.5M
Motor Vehicle Excise Tax Revenue Massachusetts residents who own and register a motor vehicle annually pay a motor vehicle excise tax for the privilege of road use and those tax revenues go to the treasury of the local city or town. The amount of excise tax levied on each motor vehicle is $25 per one thousand dollars of valuation. Over the past decade, total excise tax revenue has fluctuated from a low of just over $10 million in FY2011 to a high of $15.6 million in FY2024. Early indications are that FY25 Excise Tax Revenue will surpass FY24 actuals. Consequently, the city increased its budgeted amount in this area to $15.9 million which is in line with FY25. The uncertainty about the impact of potential tariffs on car sales suggests staying in line with FY25 is appropriate.
6 City of Newton Budgets
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