Longmeadow selectmen vote to approve single tax rate for FY17

Dec. 2, 2016 | Chris Goudreau
cgoudreau@thereminder.com

Selectman William Low, who was in favor of a single tax rate for FY17, argued that a split rate would hurt small business owners.
Reminder Publications photo by Chris Goudreau

LONGMEADOW – The Select Board voted 4 to 1 at its Nov. 21 meeting to continue utilizing a single business and residential tax rate for the second year in a row.

The single rate was set at $23.58 per $1,000 of assessed property value for fiscal year 2017 (FY17).

Selectman Mark Gold, who was the only selectman to vote against the single rate, said he believes the town should adopt a split rate for businesses and residential property owners.

“It’s no secret that I voted for a split tax rate every one of the seven years I’ve sat on the Select Board,” he noted. “I’m going to tell you why – I don’t believe that our commercial properties have been valued properly. It’s not that I really want to see the small businesses be hurt; I don’t want to see taxes passed along to the small businesses, but the analyses shows that for some reason our evaluation has been overly burdening residents with an increase in taxes.

He added residential property values in Longmeadow went up 6.5 percent during the past year, while commercial properties saw an increase of 3.7 percent.

“That’s been a pattern for the last four or five years at least… I think that there is a major difference in property values,” Gold explained. “I think the argument that says the commercial property values in Longmeadow are overburdened is belied by the fact that we’ve got a major tenant putting an addition on to pull in more commercial property, which means that there is the demand. One of the problems we have with the process we use is that the process is based on sales.”

Gold said he believes a lack of sales for commercial properties in the community indicates the value of commercial property in Longmeadow and also shows there “continues to be a skewed value of commercial versus residential properties.”

Select Board Chair Marie Angelides stated she believes a single rate would be best for the community.

“I think that we just have to keep making sure that we do close evaluation of commercial property,” she added.

Selectman Richard Foster said he believes the board should side with Assessor Robert Leclair’s recommendation to adopt a single rate.

“I don’t think anybody on this board is of a nature and background and qualifications to debate what [Leclair’s] bringing to this board and his recommendation,” Foster explained. “I respect Mr. Gold’s view and it’s a valid view and we’re entitled to our views, but at this point they’re just kind of personal views.”

Selectman Thomas Lachiusa said the town only consists of five percent commercial property and businesses should be considered “gems” in the community.

He added, “It would be nice if there was a way that we could have condominium ownership for businesses where individuals in a small business could buy their own shop, work out of there, and then when they’re done sell it to the next person. That would make it more accessible to people in the community being able to own property that’s commercial property. Maybe in the future something like that could happen.”

Selectman William Low said he believes a split tax rate would have put a greater burden on businesses compared to residential property owners.

“I think when people look at large wealthy shopping center owners, you raise the taxes, they pass those costs off to their tenants,” he explained. “And there may be some big national tenants that that’s not that big of a deal. Who you really hurt are the small business owners.”

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