property tax

The Legislature’s Joint Committee on Revenue made the first of its six stops on its listening tour yesterday, hosting a session on taxes and municipal budgets at the Academy at Worcester Polytechnic Institute.

Revenue Committee Co-Chairman Rep. Jay Kaufman, who convened the meeting, said the aim of the listening tour is to facilitate a conversation about how best to structure the state’s tax system and end the cyclical budget crises that lead to program cuts like those likely to come from the governor’s next round of 9c cuts.

The meeting, titled Tax Policy and the Challenges of Local Government, featured a presentation by Massachusetts Municipal Association Executive Director Geoff Beckwith.

When asked about whether Massachusetts needs to increase taxes due to a possible $1 billion deficit in the fiscal year 2010 budget, and an even larger deficit next year, Beckwith noted that while there is no consensus on any new revenue proposals at his organization at this time, the group has consistently supported revenue measures put forward by the Legislature or Governor.

There are a wide variety of revenue options to look at, he said, including broadening the sales tax to include services and increasing the income tax rate.

Other options discussed at the meeting included a call for a local income tax option for Massachusetts communities. Virginia McIntyre of Concord said her town’s over-reliance on the property tax has made it difficult for the 40 percent of households there who earn less than $60,000 a year. The average property tax bill there is $12,000 a year.

From the July 28 Patriot Ledger:

Holbrook... Searching for ways to ease the tax burden on aging residents, the town has inaugurated a new program allowing them to work for the town in return for credit against their real estate taxes... The pay will be the state minimum wage – $8 an hour, and, at least in this first year, there will be a $500 cap for each participant. There is also only one $500 credit per household. Studies have also shown the program also helps towns because when elderly residents sell and move, their homes are often purchased by a families who add children to the schools.

Well at least Holbrooks most famous homeboy, former State Rep. and former Chief of Staff to President George Bush, seen here with local senior citizens, should have enough in his savings acount so he won't have to work at the local library (still open) for $8 bucks an hour to get a $500 credit on his property tax.

The Boston Globe ran an article about the four most recent communities to take advantage of the Community Preservation Act in Massachusetts. It is a classic case of folks coming together--via the town meeting and supported by the state--to help plan essential structures in their communities...

The Community Preservation Act, the state law that lets municipalities levy a property tax surcharge of up to 3 percent to fund open space, historic preservation, affordable housing, and recreation projects won approval in all four area towns where it appeared on the ballot this spring: Hanson, Plympton, Stoughton, and West Bridgewater.

"People are willing to pay when they know it's going to do good things for the community," Chris Iannitelli, who served on West Bridgewater's pro-CPA ballot committee, said of the vote in his town. "We've been hearing so long that people want to see the community stay the way it is. And this act helps to preserve the community."

“A property tax cap has been implemented in 43 other states,” said Mrs. Rell, a Republican. “It can and will work here.”

So says Governor Rell in the New York Times.

And in the next paragraph so says .

House speaker, Representative James A. Amann, a Democrat, was doubtful. “I don’t know why she keeps dragging that old dog out,” he said.