Providence Finance Committee scales back commercial tax rate reduction proposed by Elorza

A KEY City Council committee has recommended a budget that would scale back the reduction of the commercial tax rate proposed by Mayor Jorge O. Elorza. / PBN FILE PHOTO/STEPHANIE ALVAREZ EWENS
A KEY City Council committee has recommended a budget that would scale back the reduction of the commercial tax rate proposed by Mayor Jorge O. Elorza. / PBN FILE PHOTO/STEPHANIE ALVAREZ EWENS

PROVIDENCE – A key City Council committee has recommended a budget that would scale back the reduction of the commercial tax rate proposed by Mayor Jorge O. Elorza.
Instead of reducing the commercial tax rate to $36.50 for each $1,000 of assessed value, as proposed by the mayor, the council’s version of the fiscal 2017 spending plan would set the commercial rate at $36.65.
This represents a 10-cent shave from the current tax rate of $36.75 per $1,000 of value.
The Finance Committee made this and other changes to the mayor’s budget request. The $717.9 million operating budget it recommended will now head to the full City Council for consideration and a series of votes.
While lessening the planned reduction for commercial property owners, the council’s Finance Committee recommended a more generous cut to residential property owners.
Under the revised budget, the residential rate for owner-occupied structures would be set at $18.77 for each $1,000 of value.
Properties held by off-site landlords would be taxed at $31.91 for each $1,000 of value.
The mayor had initially proposed a residential tax rate of $18.91 per $1,000 for owner-occupied properties, and $32.76 per $1,000 for non-owner-occupied buildings.
The bottom line on the budget increased by $1.1 million. A news release issued Friday said the council’s review had identified $1.5 million in revenue.
City Council Finance Committee chairman John Igliozzi said the budget will provide greater relief to city taxpayers.
“We understand that property values are up due to the revaluations. To lessen the burden to taxpayers, we have reduced rates across the spectrum and modified the administration’s proposed levy increase,” he said.

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