NEWBURYPORT — Saying that it's not the right time to split the tax rate, as Newburyport doesn't have enough commercial and industrial properties, the City Council agreed last night to adopt a single tax rate for both business and residents.

The council did not set the actual tax rate, as the city is still awaiting information on its new growth figures for the year. While the tax rate is currently $10.13, it could jump up to $10.93 next year, Assessor Daniel Raycroft told the councilors in a hearing prior to the meeting.

During the special presentation prior to the council's scheduled meeting, Raycroft noted that residential property owners pay 86 percent of the total tax bill while industrial pays about 5 percent and commercial pays about 7.7 percent.

Ray Nippes, the chairman of the Greater Newburyport Chamber of Commerce and Industry, spoke briefly before the council, asking them to adopt a single tax rate, which they ultimately agreed to do, voting unanimously to keep one rate for all. Councilor Brian Derrivan was absent.

"I think that we should stick to a single rate," at-large Councilor Donna Holaday said, pointing to issues raised in neighboring Amesbury, which adopted a shift in the tax rate two years ago.

In voting for a single tax rate, the council decided not to split, or shift, the tax rate, which would increase the portion of the tax bill paid by the commercial and industrial property owners and decrease the amount for homeowners.

Newburyport only has a 12 percent commercial and industrial base, Holaday said, adding that, based on her research, a city needs to have at least 20 to 21 percent industrial and commercial to effectively adopt a split rate.

With the current economy, it is not the time to add another burden to businesses in the city, she said, and Newburyport doesn't need more vacant storefronts.

Following the meeting, Holaday said a split tax would cause rancor between businesses and residents, which seemed to happen in Amesbury. The move to shift the rate by the previous Municipal Council in that city drew public outcry from residents and the business community.

While several Newburyport businesses have moved to Amesbury since the split rate, such as Ashley and Barnes and Plum Island Coffee Roasters, more factors than just the tax rate can play into that, she said, such as rental prices.

In Amesbury, there are warehouse spaces able to be converted into business space, at-large Councilor Barry Connell said, something that Newburyport doesn't have.

"There are a lot of factors," Connell said.

A split rate would send the message that businesses aren't wanted or needed here, Connell said.

"It's not a smart thing to do," he said.

Newburyport did have a split rate for one year in the late 1990s, at-large Councilor Tom Jones said.

"It only lasted one year," he noted.