HomeMy WebLinkAbout1993-09-09 Taz Classification Task Force MinutesTAX CLASSIFICATION TASK FORCE MINUTES
Meeting: September 9, 1993 7:30 P.M. Town Hall Employees Lounge
Present: Steven Cool Pres. Reading Taxpayers Association
David Billard Town Appraiser
David Hurley Reading Realtors Association
Beth Klepeis Town Finance Director
Bill Burditt Board of Selectmen
Mollie Ziegler Board of Assessors
Dick Coco Chairman Finance Committee
Bill Goodrich Community Planning & Development Comm.
Michael Linnane Chamber of Commerce
Vinny Gatto Chamber of Commerce
Chairman Cool called the meeting to order. The minutes of
the September 2, 1993 meeting were unanimously approved. Members
of the committee representing the Chamber of Commerce, Vinny
Gatto and Michael Linnane, and representing the Town Community
Planning & Development Commission, Bill Goodrich were introduced.
Chairman Cool reported that he had spoken to a number of
town agencies and departments to determine what services they of-
fer for homeowners and businesses. He also reported that he had
contacted the Mass Taxpayers Association. The reason that clas-
sification began was that many communities were not assessing at
full and. fair market value when Proposition 2 1/2 became law.
Classification of taxes for different groups of property would
allow them to equalize valuations gradually. This was the
theory, but equalization has not happened in many places.
The question arose as to whether we can classify the other
way, or favor commercial tax payers over residential. There is
no mechinism in place to do so. The price of town owned land
could be adjusted, or special state legislation could be sought
to attract attractive new businesses, but these are outside the
scope of tax classification. It was mentioned that the Town
wants to appear pro business right now, and that tax classifica-
tion is seen as anti-business.
Dave Billard distributed a comparison of various towns
regarding their classification status. 67 % of the communities
surveyed have two rates for their properties. It was noted that
a number of communities had classified in the early 1980's, with
Stoneham being the most recent of the group in 1988. Stoneham
has only shifted the tax burden minimally (ie. about 10%). It
was noted that many communities which have a greater percentage
of classification have a well established commercial base. Read-
ing is making every effort to encourage business and to avoid an
unfair burden on our business community, which has seen a number
of businesses fold recently.
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Bill Burditt distributed the minutes of the Board of
Selectmen's Classification hearing held November 4, 1992. The
Board of Assessors unanimously recommended the factor of one, or
equal tax rates for all classes of property. The minutes did not
contain much discussion regarding classification, as the hearing
was taken up with many questions concerning values, which were
outside of the scope of the classification issue.
Steve Cool's comparison of services received by business and
residential property owners was reviewed. It was mentioned that
the relationship between business and residents was symbiotic,
with services helping both groups (ie. public parking lots, fire
inspections, foot patrols, etc.). It was also mentioned that
businesses serve citizens by supporting charitable and educa-
tional fund drives and functions. Functions such as the public
library, senior center, elder care, human services and health,
recreational facilities, the cemetery, education, and trash
pickup do not benefit the business community.
Members of the committee expressed the viewpoint of the
group they represented regarding classification. Dick Coco
reported that the Fin Comm's viewpoint was neutral.
Dave Hurley reported that the realtors felt that residential
values would not be impacted by a shift in classification. Their
view is that classification would be a negative impact on all
property owners if it discouraged a high class user of available
commercially zoned land and thereby encouraged a "big box"
user.
Bill Goodrich reported that CPDC is working with the
Selectmen to attract to Reading Business Park a high class user,
such as a Bio Tech company. They feel that such a firm would
consider the tax rate, among other factors, in a decision to lo-
cate in Reading. The biggest plus about the former Reading
landfill is that it is 33 acres, one of the few large sites of
vacant land along Route 128.
Vinny and Michael want to review the subject with the Cham-
ber of Commerce. They want the town to be as responsive to
businesses as possible, and at the same time be fair to all
property owners.
To.predict the future situation in Reading vis a vis clas-
sit ication is difficult. As classification decisions occur
yearly, it was decided to focus on the present for the recommen-
dation for FY 1994. Steve Cool asked that he be given the Town's
assessing file of values for all properties. It was decided that
the information on values was beyond the scope of the classifica-
tion issue, and that Dave Billard, as the Town's professional ap-
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praiser would provide any data needed concerning the values of
properties in Reading. Mr. Cool may purchase the file for his
personal use, as it is public information.
It was decided that each committee member representing an
interested group would write a representative report to be turned
into the chairman, or brought to the next meeting. At that meet-
ing, it will be identified what needs to be done to produce the
report. On October 7, the committee will meet to vote on the
committee report.
The meeting adjourned at 10:45 p.m.
Respectfully submitted,
Eliza eth W.
Secretary
Klepeis
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