WESTFIELD – Kate Phelon, executive director of the Greater Westfield Chamber of Commerce, requested the City Council to adopt a tax shift that will reduce the tax rates on commercial, industrial and personal property (CIP) classification.
The CIP tax rate is nearly twice that of residential property. In 2015 the CIP tax rate was $34.69 per $1,000 of value, while the residential tax rate was 18.54 percent per $1,000 of assessed value. Based on those rates the average CIP property tax bill was $18,559, while the average residential bill was $4,164.
The City Council, for the fifth year in a row, voted to adopt a residential shift of 1.63 last year, although several member of the council felt that a higher shift should have been adopted to reduce the residential tax bill burden.
Phelon said a shift of 1.71 or 1.72 would result in a CIP rate of more than $38 per $1,000 of value, “the same tax rate just set by the Springfield City Council.”
Phelon said the “long-range ramification if the CIP rate reaches $38 (per $1,000)” will make it difficult to attract new and retain current businesses.
“We heard in the At-large Council and mayoral debates that we need new business development (to increase the tax base and revenue), but at $38+ per $1,000 I don’t think so,” Phelon said.
“I ask you to keep in mind that business pays higher (water and sewer) fees, additional taxes and do not receive the same city benefits (curbside trash collection) as residents,” Phelon said.
“Please have a thoughtful debate and serious consideration about the ramifications of a significantly higher tax shift and what the long-term impact will be on the economic development with a higher CIP tax rate,” Phelon said.
“Besides asking for a modest tax shift reduction (1.59) maybe it’s time to also ask the council to take a serious look at spending. It may not be a comfortable discussion, but a necessary one,” Phelon said.
