NORTHAMPTON - Property taxes would rise by 3 percent next year under a proposal presented Thursday to the City Council, climbing from $12.96 per $1,000 of assessed value to $13.35.

If approved by the council at its next meeting on Dec. 1, the change would mean the owner of a house valued at the citywide average of $304,422 would pay $4,064 in taxes next year, up from the current $3,945, according to figures provided by Joan Sarafin, the principal assessor.

The owner of a home valued at $350,000 would pay $4,672 in taxes and the owner of a $400,000 house would pay $5,340 under the new rate.

At Thursday's public hearing, Sarafin recommended that the city continue its longtime practice of using one tax rate for all classes of property: residential, commercial and industrial.

During the public comment portion of the hearing, Suzanne Beck, executive director of the Greater Northampton Chamber of Commerce, said the "factor of one" system has been "a very supportive business policy for Northampton."

Terri Anderson, the city's community and economic development director, agreed. She said the single tax rate "has been one of the biggest competitive advantages we can offer."

Sarafin recommended against two potential options for changing the tax rate: discounting up to 20 percent of the average value of owner-occupied residential properties or discounting 10 percent of the value of commercial businesses that employ 10 or fewer workers.

While the residential discount allows home owners with lower assessments to pay lower taxes, apartment properties are subject to the higher tax rate, Sarafin noted. "Increased taxes usually means an increase in rents," she said.

Sarafin said a discount for small businesses would mean an increase in the tax rate for other commercial and industrial properties. Also, she said, it's unlikely that property owners - who are the ones receiving the tax break - would pass on the benefits to small businesses who rent space in the city.

After hearing about the options, City Councilor Eugene Tacy said he strongly supports maintaining a single tax rate. "It seems like a smart move to keep the factor of one," he said.

A history of tax rates in Northampton provided by Sarafin's office shows property taxes were at a decade-long low of $10.89 per $1,000 of assessed value in 2007, down from $15.58 in 2001. The tax rate has risen only slightly in the past two years, from $12.64 in 2010 to $12.96 in 2011.

Barbara Solow can be reached at bsolow@gazettenet.com.