Prov Finance Chair Pushing for New Tax Structure in Providence
GoLocalProv News Team and Kate Nagle
Prov Finance Chair Pushing for New Tax Structure in Providence
“Right now we are working collaboratively together,” said Igliozzi, of working with City Council — and administration of Providence Mayor Jorge Elorza -- on putting forth a new tax structure. ‘The proposed model is going to one rate and going back to the homestead exemption. You will see [more details] in the near future.”
Currently, the Providence City Council is in the final weeks of consideration of Elorza's FY2020 budget.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTElorza had proposed reducing the owner-occupied rate to $15.35/1000 -- a decrease of 18.35% -- and reducing the non-owner occupied rate to $24.56/1000 -- a decrease of 23.15% -- to take into account the recent property revaluations conducted by the city.
Concerns Raised Over "Leaked" Details -- Igliozzi Refutes Structure
GoLocalProv.com reported on Monday, “East Siders Raising Concerns That City Could Shift Tax Burden to Higher Priced Homes.”
Igliozzi said he had heard the numbers based on the proposed one-rate, homestead exemption model that were being floated ahead of the Council approving the Fiscal Year 2020 budget, and disputed their validity.
“At this time — any models or rates that are out there in the public have no merit and would not be financially responsible — those rates would put us above the cap,” said Igliozzi. “Right now we haven’t produced specifics, we are still working on modeling. Again, if there are rates and percentages, they’re not based on fact at this time. We have to do what’s financially responsible.”
The original post -- which was shared to resident Cheryl Simmons' listserve -- stated that the city is looking to make a move to "go back to the old system of one rate and a homestead exemption.” The post stated:
"The current proposed owner-occupied rate is $15.35. Under this new plan, the rate would be something like $30.70, but owner occupants would get a 50% discount (aka homestead exemption). However, they are now proposing to make that exemption variable based on house value, so, for example, the exemption could work like this:"
House Value Exemption
$0 – 250,000 50%
$250,000 – 500,000 40%
$500,000 – 750,000 30%
750,000 – 1,000,000 20%
$1,000,000 + 10%
And while the original post stated that Councilwoman Nirva LaFortune was for the plan -- Simmons' posted comment on Tuesday by LaFortune clarifying her position.
Both Councilwoman Anthony and I learned of this tax model for the first time last Thursday evening after our regular City Council meeting. I am opposed to adding this measure to this year's budget. Although in theory, a taxation model that includes a homestead exemption is worthy of consideration and discussion, imposing such a change without transparent analysis, discussion and debate are imprudent and undemocratic.
When Chairman Igliozzi told me about this proposal last Thursday, I informed him that I could not consider supporting it without first reviewing the data (once it has been shared with us) and obtaining community input, informed by research and expert analysis. In contrast, this plan has not yet been officially introduced with supporting documents or vetted. Even without the research, it is clear that the proposal would hurt many residents, particularly those who have been in their homes for many years and may be on a fixed income. I cannot and will not support a plan based on a casual discussion after a meeting.
My commitment is to my constituents and all of the residents of Providence. Decisions that we make about taxes or any reform that has such significant fiscal implications should not be taken lightly. Feel free to contact me with any additional questions or concerns.
Sincerely,
Nirva
Nirva R. LaFortune
Providence City Council,
Ward-3