The Select Board will have a public hearing tomorrow and set the tax rate for 2011.Several years ago, I posted an explanation of how the tax levy and the tax rate are related and that explanation can be found at this link. Currently Dartmouth employs a split tax rate where commercial, industrial and personal (CIP) property is taxed at a higher rate than residential properties. For the past few years that "split tax" rate has been 40% higher on CIP property. In addition a small commercial exemption has been adopted which reduces the tax on small businesses by 10%, resulting in a split tax on those establishments of 130%.
Back in March 2008, I posted an explanation form Mr. Gracie on why the ability to split tax rates exists and why it is applicable to Dartmouth. That post can be found at this link.
Thanks to the banksters and Wall Street's riverboat gamblers, residential real estate values have declined for the past few years. The result is that the percentage of the total tax levy paid by the CIP properties has increased somewhat over the past few years. I believe that this compensates for a decade or more shifting the burden to the residential portion of the levy. In any case, ...
... the shift is not large, CIP real property taxes would grow to 22.2% of the levy from a low of 13.8% in 2006. My initial thought is to leave the tax shift unchanged for the next year. That position is not staunchly held and I will be interested to hear what the arguments are to change it, if any, at the hearing tomorrow. What are your thoughts on this?
Sunday, November 28, 2010
Tax classification time
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3 comments:
I trust the SB will keep the split tax rate. This issue has been debated ad nauseam in the past. It simply makes sense. I know of no business that has been seriously affected by it. In fact, I support an increase to maximum split rate of 50%. This would place the burden where it belongs given the expenses the town incurs in providing emergency and regular infrastructure support to the businesses in this town.
Yes the fault lies with the bankers and river boat gamblers. certainly not the people who bought homes well beyond their means or mortgaged them to the hilt to pay for a lifestyle they could ill afford. Could'nt be them or their comrade in arms Barney Frank.
'tis the season. Every taxpayer would be nauseated at the amount of taxpayer resources consumed by the repeated shoplifting calls to the mall, Kohls, and just about every other business in that area of town. There should be a heavier burden on those that tax the system overwhelmingly.
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