East Siders Raising Concerns That City Could Shift Tax Burden to Higher Priced Homes
GoLocalProv News Team
East Siders Raising Concerns That City Could Shift Tax Burden to Higher Priced Homes
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"
According to the post, "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:"
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTHouse 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%
"This tax proposal will hurt not just the East Side but any and all property owners of homes assessed over $250,000. We sell homes every day to families who are attracted to an urban lifestyle and all the good that our city has to offer, yet these taxes will make it impossible for this growth to continue. Not to mention how it will push out our elderly residents on a fixed budget whose property value is being treated as income," said Green, the top Providence Realtor at Residential Properties, llc.
"Furthermore, property owners who received much higher assessments were told that the rate would go down and as a result may not have challenged their assessments, and to find this out so late is nothing short of misleading. What kind of city does this?" added Green.
Providence City Council Finance Chair John Igliozzi did not respond to repeated request for comment on Tuesday.
Original Post
The following was posted to Simmons' email listserve on Monday.
We have learned that Councilman John Igliozzi (Chair of the Finance Committee from Silver Lake) is working on a dramatic change to property taxes to slip into the budget at the list minute that will have a major impact on East Side property taxes.
You may have read that properties values in the recent revaluation increased more dramatically (by percentage) in places other than the East Side. As a result of the 4% overall property tax cap, property taxes are going up elsewhere in the city faster than the East Side this year.
In an attempt to cut taxes for their constituents and to stick it to the East Side, there is a move to go back to the old system of one rate and a homestead exemption. However, they are planning on phasing out the homestead exemption based on a house's value. While the details are still secret, this is how we hear it will work:
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:
The City law department is supposedly researching this but can’t say that it's illegal. The Mayor is apparently undecided on whether he supports the plan or not. Council President Sabina Matos is apparently going along with it. Our East Side council people know. Helen Anthony and Seth Yurdin are opposed. Nirva LaFortune is said to be for it.
We need to activate the East Side immediately. The budget must be approved by July 1, but could be passed anytime.
We need all our neighbors to call the folks below and let their voices be heard. Enough is enough. We already share a huge portion of the tax burden and get mediocre services in return. Were this to pass we would see an immediate negative impact on our property values.
Mayor Elorza’s Office – 401-421-2489
City Council’s Office – 401-521-7477
Council President Sabina Matos (Olneyville, Silver Lake, Valley) – 401-400-1315
Councilman Seth Yurdin (Fox Point) – 401-484-7207
Councilwoman Helen Anthony (College Hill, Blackstone, Wayland) – does not publish her phone, but email is [email protected]
Councilwoman Nirva LaFortune (Blackstone, Summit, Mount Hope) – 401-680-0252
This article was first published 6/10/19 7:35 PM