NEW: Businesses Urged to ‘Show Up’ in Force for Tax Rate Hearing
Monday, May 21, 2012
With residents hoping for the lowest possible tax rate and business advocates pushing to keep commercial and industrial rate from skyrocketing, councilors are faced with a decision likely to leave at least one side disappointed.
'Show Up'
“Given the recent, and dramatic, increase in property valuations for commercial and industrial businesses, it is imperative that businesses ‘show up’ to convey to the city council the effect that the tax rates could have on their sustainability,” Chamber President and CEO Richard Kennedy said in a press release. “The chamber has received an abundance of telephone calls, emails, and meeting requests on this issue and wants to ensure that businesses make their concerns known to the Worcester city council.”
Valuations for commercial and industrial property increased this year, in some cases dramatically – with some businesses notified of property value increases of more than 400-percent. Residential valuations, on the other hand, have decreased. Businesses are worried that could lead to a tax rate that could force some of them to make difficult decisions.
Kennedy recently told GoLocalWorcester that “absolutely” some businesses would go out of business if their tax rates increased too much.
Tax Rate
The council’s tax classification hearing will decide how taxes will be shared between the city’s two classes of property. The lowest possible residential tax rate is $14.50 per $1,000 of assessed value. That would result in a commercial and industrial tax rate of $35.57. The chamber is asking councilors to set a tax rate of $17.18 for residential properties and $28.56 for business properties. That would mean an average increase of 2.8 percent both for residents and commercial and industrial taxpayers.
“The statement, 'show up or pay up,' may sound harsh but we are trying to drive home a message,” said Kennedy. “This ever-looming dual tax rate issue has finally reached critical mass and if businesses do not stand up and speak for themselves then they may have to suffer the consequences of a crippling tax bill.”
The tax classification hearing is scheduled for 7 p.m. in council chambers on the third floor at city hall.
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