Elected representatives in the largest city in western Massachusetts are struggling with what is typically the toughest vote taken all year – setting new property tax rates.
The Springfield City Council voted to postpone for 48 hours a final decision on setting new tax rates after several councilors voiced concerns Monday night about raising homeowners’ tax bills.
After two votes on proposed rates fell short of a simple majority needed to pass, City Councilor Jesse Lederman said more time is needed to deliberate.
"Historically there has been some time between the mayor's recommendation and the final vote," said Lederman. "We just saw the recommendation from the mayor's office Sunday night, and it was clear to me the councilors wanted more time."
The council will meet Wednesday Nov. 28 at 6 p.m. to resume debate.
Mayor Domenic Sarno recommended the tax rate for residential property remain unchanged at $19.68 per $1,000 of valuation. Because residential property values have increased, the annual tax bill for an average single family home would rise by $81.
Under the mayor’s proposal the tax rate for business and commercial property in the city would increase by 2 cents over last year to $39.30 per $1,000 valuation.
Springfield Board of Assessors Chairman Richard Allen recommended the council approve the mayor’s proposal.
" I think it strikes a fair balance between the interests of the homeowner and the business community," he said.
Nancy Creed, president of the Springfield Regional Chamber, implored councilors to keep the business property tax rate unchanged. She said starting in 2019 businesses will face an increase in the minimum wage, higher health insurance premiums, and a new payroll tax for a paid family leave program.
"We believe our business community is at a tipping point where it can no longer compete with neighboring communities and states," Creed said.
The City Council’s finance-tax rate subcommittee by a 3-2 vote recommended leaving the commercial and industrial tax rate the same as this year. That would result in a residential tax rate of $19.69 and an $82 increase in the tax bill for the average single family home.
Councilor Tim Ryan, who chairs the subcommittee, said Springfield has the dubious distinction of having among the highest tax rates in the state on commercial and industrial property.
"There is no right or wrong here, but it is to give the business community the sense that we understand their concerns," said Ryan.
Both the mayor’s and the subcommittee’s recommendations fell short of the votes needed to pass in the council Monday night.
Councilors must eventually agree upon rates that will allow the city to collect a total of $205 million in property tax revenue in order to balance the budget the Council approved for the fiscal year that began on July 1st.
The city has mailed two estimated quarterly tax bills. The first of two adjusted actual bills will be sent to city taxpayers once the Council approves the new rates.
