Rhode Island Gets Honorable Taxation
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Property Tax 
Are you paying more than your fair share?

 

2. How to assure an affordable level of local spending.

There are a couple of issues regarding S3050 (the law which sets the limit on annual increases to the tax levy) with which I am very uncomfortable. The most serious one is the fact that the limit is a fixed number.  Like other states such as Florida, Massachusetts and California, Rhode Island has settled on a fixed percentage increase.

Other states which have done so, regularly find themselves having to have referenda to override the legal limits.  Massachusetts towns have overridden the limits over 35% of the time.

If they don't override, then services need to be curtailed or the burden shifts unfairly to new owners who must make up the difference.

When inflation is 2%, perhaps a 4% limit on increases is higher than it should be.  Likewise if inflation is 7 or 8% is a 4% limit realistic?  I don't think so.

I urge that the law be modified to index the limit to some portion of the CPI or other relevant index.

One more thing. Does anyone realize that no matter how many new properties are built in a community the town is still limited to a 4% increase in the tax levy year to year?  Why didn't anyone see that this makes no sense at all?

This law must be modified now.

What to do with tax exempts, Part 3

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Rhode Island Gets Honorable Taxation
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Email
Harvey Waxman
73 Wright Lane
North Kingstown, RI 02852