The amount of taxes you pay is determined by the appropriations voted at Town Meeting. The Town adopts a budget that reflects what services will be provided and the cost to provide those services. After Town Meeting adopts a budget, the amount of taxes to be raised is calculated in accordance with Proposition 2-1/2 and divided by the total taxable valuation of the Town to determine the projected single tax rate. The Board of Selectmen holds a public hearing to determine whether and how much residential tax will be transferred onto the commercial properties, commonly referred to as the split tax rate (commercial properties pay a higher tax rate than residential properties). All the information is forwarded to the Department of Revenue for its review and approval. The tax rates are then finalized to raise the needed dollars to pay for the services that the Town voted to provide.