A potential override that would raise the tax rate in Dartmouth for a more competitive split in health care costs for town employees could end up costing taxpayers more than $2 million.

Town Treasurer Greg Barnes told the Select Board at a meeting on January 27 that a tax override for the town to pay more of its employees health costs would add $33.57 for every $100,000 in property value to residents’ yearly tax bills.

This means that a taxpayer with the town’s median property value of $337,200 would pay an extra $113.19 in taxes.

The Proposition 2 ½ override would allow the town to increase taxes above the state-mandated 2.5 percent maximum per year in order to increase the current split of 52-48, in which employees pay 48 percent of their health insurance costs.

Dartmouth’s current tax rate of $9.93 per $1,000 in assessed value is the 35th lowest rate out of the 351 cities and towns in Massachusetts.

The town is currently looking into the feasibility of increasing its contribution to employees’ costs to 60 percent to help with insurance rates that are among the highest in the region.

Barnes noted that the $2 million estimate includes employees who may switch to the town’s health care if their contributions go down. “About half our employees currently do not take health care,” he said.

However, he stressed that the estimate does not include the cost of health care for retired town employees.

“Historically the town has always funded the retirees at the same level as the actives,” he said. “40 percent of our health care costs go towards retirees, and that number increases every single year.”

“That is not a small issue, and it’s one of the major reasons why things are so difficult to address,” he added.

The ratio of what the town and its employees pay for health care is one of the top contentious issues in negotiating new contracts. 

Some of the town’s lowest paid employees — including teachers’ assistants — are left with $100 per week in take-home pay. 

“Unfortunately, as much as we would like to, the towns aren’t migrating to cover more of the health care contribution — in fact, it’s going the other way,” noted Town Administrator Shawn MacInnes. “The minimum the towns can provide is 50-50. More towns are moving in that direction.”

MacInnes added that there were some benefits to the town’s high deductible health care plan.

“When employees are covering more of the health care costs through the high deductible, the rates don’t go up as much as they have, as they would through the other plan,” he said. “So looking long term, it’s a much more effective plan.”

This article has been updated to include Dartmouth’s current tax rate and how it compares to other communities in the state.