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Westport’s Tax Shake-Up: Why Lower Rates Might Mean Higher Bills

The Big Change: A Dropped Tax Rate with Hidden Costs

Westport has adjusted its property tax system for the 2026-27 fiscal year—but the headline-grabbing drop in the tax rate from 18.86 to 13.2 doesn’t tell the whole story. While the rate fell, homeowners may still see their tax bills rise due to a dramatic disparity in property valuations.

Over the past five years, residential property values surged nearly 60%, while commercial properties only increased by about 17%. The result? A shifting tax burden—commercial properties used to shoulder more of the load, but their slower growth forced the town to rely more on homeowners to maintain revenue.

Why This Happened: A Matter of Market Forces

This isn’t just a Westport issue—it mirrors a national trend. Online shopping has crippled brick-and-mortar businesses, while housing demand remains sky-high, driving up residential values. The town didn’t increase spending; it simply redistributed who pays what.

But the financial pressures don’t stop there. Westport is set to borrow $80 million for projects like a new school, adding strain to future budgets. On top of that, the town pays $9 million annually toward old debt, limiting flexibility to cut taxes later. With inflation and rising costs looming, some leaders fear rates could climb even higher in the coming years.

The Silver Lining: A Strong Financial Cushion

Not all the news is grim. Westport maintains a healthy savings account—about 11.45% of its spending—which helps secure its top credit rating. Officials argue this buffer could shield homeowners from extreme increases down the line.

Yet, skepticism lingers. Retirees and long-term residents worry about the long-term impact, especially as other costs remain uncertain.

What’s Next? Unanswered Questions and Rising Costs

The town relies on permits, fees, and other revenue streams, but some expenses are still up in the air. Union contracts for firefighters and public workers haven’t been finalized, and if settlements require higher wages, taxpayers could foot the bill.

Neighboring towns like Fairfield are experiencing similar shifts, proving this isn’t an isolated issue.

Bottom Line: Lower tax rates don’t always mean lower bills. Westport’s new system redistributes costs, but financial pressures and future uncertainties could keep residents on edge.