BREAKING NEWS: Taveras Proposes Tax Increases

BREAKING NEWS: Taveras Proposes Tax Increases

After proposing sweeping cuts across the budget, Providence Mayor Angel Taveras tonight will call for increasing property taxes in a budget address that is scheduled to be delivered now at Providence City Hall.

“After laying off city workers, instituting pay cuts, reducing the police and fire budgets, increasing contributions from universities and hospitals, closing schools, and reducing the school budget, the City still cannot close the massive structural deficit without a tax increase,” Taveras’ office said in a news release.

Taveras will not seek any changes to the car tax, but he will be asking the City Council to approve increasing the tax levy by 5 percent, generating about $15 million in new revenue.

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Tax exempts targeted

His administration also will pursue more money from tax-exempt nonprofit institutions—including the many colleges and hospitals in the city. If they all paid taxes at the regular rate, they would owe $97.5 million. Taveras says he aims to strike a deal in which they would pay a total of $9 million.

The city also is backing state legislation that would allow it to tax currently exempt institutions at 25 percent of what their property taxes would be were they not a non-profit.

Spending cuts

Taveras said the budget already reflects $26 million in savings over several years, thanks to a new contract the city has reached with Laborers’ Local 1033. The budget also includes a $6 million cut to both the police and the fire departments. Taveras said where those cuts would be made depends on the “union’s willingness to negotiate on cost savings measures.”

DEVELOPING….