In other words, if you had two identical houses. The one that was owner occupied could have up to a 20% lower tax bill then the house next door that may not be owner occupied. In essence we would have not two classifications, but now 4:
- residential owner occupied housing with 3 units or less may qualify up to a 20% reduction
- residential non-owner occupied housing with 3 units or less
- residential housing of 4 units or more will be taxed commercial
- commerical
Let me ask you this question. You are a developer looking to take an old factory and turn it into residential market rate housing; for example, the Lincoln Square Boys Club. Taxing these projects commercially will discourage these types of investments, which we need desperately.
But if the one tax rate was adopted as recommended (once again) by the Mayor's task force; wouldn't this actually make the overall commercial tax bill much less than it currently is making any of these scenarios a moot point?
ReplyDeleteDavid Z
ReplyDeleteThe Mayor's task force did not recommend one rate? They encouraged, however. a closing of the gap.
What they also mentioned was the taxation of 4 plus units as commercial and an up to 20% exemption for owner-occupied dwellings. In essence 4 different tax rates.
Bill
Bill
Bill,
ReplyDeleteThis is an excerpt from one of the T&G reports on the task force recommendations:
"We believe that moving to a single tax rate makes sense, but it must be done over time, with constant reference to how the city is doing financially."
I do believe they are advocating for a single tax rate. They do realize though that it won't happen overnight.
Either option, going to a single rate or taxing 4 or more residential units as commercial will negatively impact market rate multifamily development in Worcester.
ReplyDeleteReducing barriers and creating incentives to encourage the development of multifamily market rate housing in Worcester, in particular in downtown, is critical and deserves special attention as the tax rate debate moves forward.
In light of the recommendations of this report, a Philly Plan type automatic tax abatement for new multifamily development seems worthy of serious consideration.
Eric K.
Worc., MA
agree 100% with Eric on this one
ReplyDeleteNew multi family dwellings built by community development corporations will get property taxes subsidies? This is certainly an about face for this blogging community.
ReplyDeleteI disagree.
I was looking at the Direct Air website and saw Punta Cana and San Juan listed as destinations from West Palm. Both would be good with Worcester's Population.
ReplyDelete