TAX INCREASE DUE TO foolish decision by our elected officials!
- Mike Clifford
- Jun 30, 2019
- 2 min read
Updated: Jan 6, 2020
Homeowners will all pay higher taxes due to a foolish decision by our elected officials!
Some of our town leaders, particularly Town Administrator Ezovski, have been pointing the finger of blame for this year’s tax increase on the drop in tax revenue from tangible property. Unlike houses, tangible assets of businesses decrease in value each year and as a result, the tax bill for that property automatically decreases as well. To compensate for the loss of the tangible tax revenue the town receives, taxes collected from homeowners are raised. The Administrator’s solution to the perceived problem was to lower the tangible tax rate. This action results in losing even more tangible tax revenue and at a much faster rate. That’s right folks; the plan to improve the problem of declining revenue makes the problem even worse. Unfortunately, the Town Council voted to support the plan. As a result of the reduction in the tangible tax rate, homeowners will be burdened by higher taxes this year and in every year going forward!
Former councilman Edward Yazbak, an accountant by profession, attended the meeting accompanied by several of his clients who operate businesses in North Smithfield. He was extended a special privilege by Council President Vadenais and allowed to speak in favor of reducing the commercial and tangible rates. Mr. Yazbak’s arguments could have been easily negated by several members of the audience but Council President Vadenais, a big supporter of the plan, would not extend the same privilege to others after Mr. Yazbak spoke.
It’s democracy in action in town these days; extend political favors to those who share your beliefs and support you, and gag those who wish to offer different facts and opinions. Since I wasn’t allowed to speak on Friday night, I’ll express my opinion now; plain and simple, the reduction in the tangible tax rate was a gift to National Grid, the town’s largest tangible taxpayer. National Grid pays over 70% of the total tangible tax revenue the town receives so the drop in the tangible tax rate translates into a huge tax cut for the company. Sadly, homeowners are stuck paying for National Grid’s tax break gift.
After adding another $100,000 to the budget, the Town Council approved the new tax levy at Friday night's meeting. In a nutshell, I believe homeowners got the short end of the stick as a result of yet another well-orchestrated back room deal. Residential rates could have dropped even further if the Council had not followed the Administrator’s recommendation to lower the commercial and tangible rates.
Please remember that 88% of the homes in town will be taxed on a higher value as a result of the recent re-evaluation. Many folks will see a substantial increase in their tax bill this year.
Below are the anticipated rates based on the tax levy approved by the Town Council:
The Residential tax rate is expected to be $15.867 per thousand. The Commercial rate is expected to be $18.88 per thousand. The Tangible tax rate is expected to be $42.50 per thousand.
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