VIDEO: Council Plans Would Shift Tax Increase to Expensive Homes, Matos Blasts East Side Members

VIDEO: Council Plans Would Shift Tax Increase to Expensive Homes, Matos Blasts East Side Members

In an unprecedented 8 a.m. press conference on Thursday morning by the Providence City Council leadership, a new tax plan was unveiled with just two-plus weeks in the fiscal year that would drastically change the burden to the homeowners of the most expensive homes in the city.

The press conference hosted by Council President Sabina Matos and Finance Committee Chair John Igliozzi dramatically changes the tax burden. The time of the press conference may have been tied to both Matos and Igliozzi needing to get to work as both are employed by the State of Rhode Island -- Matos said she needed Thursday morning however to attend her son's graduation.

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"We're not pitting one neighborhood against the other," said Matos. "[This is] a progressive tax plan to put all homeowners on equal footage."

Mayor Jorge Elorza office has not responded to questions.

Matos Blasts East Side Members

Matos blasted the East Side city council members who have criticized the new plan.

“They have not come to any of the meetings. What are their proposals? Do they just want to increase the taxes on the poorest?” asked Matos.

Matos comments were directed at the East Side Council members — Seth Yurdin, Helen Anthony and Nirva LaFortune who represent Wards 1-3 respectively. None of them supported her for Council President.

Igliozzi and Matos complained that Mayor Jorge Elorza’s budget increases spending by $15 million.

“The plan that we are proposing would give a 40% exemption for the first $350K assessed value for homeowners, and then a 28% exemption on the assessed value after that,” stated Council President Sabina Matos. “This plan provides much-needed relief for those individuals who are on fixed incomes or are single parents and just trying to make ends meet. I think of people I know in our community, which with the revaluation saw massive increases in their assessed values. This plan would help mitigate that huge tax burden, and provide much-needed assistance to all residents in every neighborhood across Providence.”

According to City Treasurer Jim Lombardi, under the council's proposed plan:

* 86% will see a tax decrease from the Mayor's plan

* 14% will see some sort of increase

Roughly 2,900 will see a tax increase in the Council's new revised budget versus Elorza's proposed budget.

According to charts presented at the press conference -- much of the tax burden would shift from homes valued less than $350,000 to about 963 homes that comprise just 3 percent of the housing stock and are valued at more than $750,000.

Igliozzi stated, “There is not an endless source of money to keep our city running, and as one of the only cites in the state of Rhode Island that does not have a homestead exemption, it only makes sense that we explore this route."

"We want to be a city that welcomes the homeless, not creates the homeless," said Igliozzi.