Importance of Local Receipts

Local receipts in Massachusetts refer to revenues generated by municipalities, excluding real and personal property taxes. These include sources such as motor vehicle excise taxes, investment income, hotel/motel taxes, fees, licenses, permits, rentals, and service charges. For Fiscal Year 2025 (FY2025), the combined estimated local receipts across the state amount to $3.56 billion, representing just under 10% of the total General Fund revenue. Natick's estimated local receipts is budgeted for $18,992,998 or 9.6% of the annual budget, in line with the estimated state average. 

While local receipts constitute approximately 9.7% of the aggregate General Fund revenues statewide, individual municipalities experience varying contributions from these sources. The median percentage for municipalities stands at 8.2%. An analysis of all 351 municipalities reveals that the largest concentration falls within the 6% to 7% range. This data highlights the diversity in local revenue structures across Massachusetts communities, and Natick's efforts to ensure that it collects as much as possible to augment the property taxes it collects. In FY2024, Natick collected $21,537,454 in local options receipts or 11.3% of its total revenue. Over the last several years, Natick has reviewed most of the fees it charges (for example alcohol licenses, building permits, and licenses) and compared them with peer communities. This process resulted in an increased fee structure in many cases and the review is ongoing.

Understanding and analyzing these local receipts is crucial for effective municipal budgeting and financial planning. By monitoring trends and variations in these revenue streams, Natick can make informed decisions to ensure fiscal stability and address our community needs. Resources such as the Municipal Finance Trend Dashboard provide valuable insights into these financial metrics, aiding municipalities in their strategic planning efforts. If you are into graphs and charts, visit DLS Local Receipts.