Selectmen set single tax rate for fiscal year 2012

Date: 9/27/2011

Sept. 26, 2011

By Chris Maza

Reminder Assistant Editor

EAST LONGMEADOW — East Longmeadow will once again have a single tax rate for fiscal year 2012 (FY12).

The Board of Selectman announced the decision at the tax classification hearing as part of its Sept. 20 meeting.

Board or Selectman Chair James Driscoll said the single tax rate is something he has always supported in order to keep the town business friendly.

He explained that asking companies to pay a higher tax rate could be unfair, seeing as they do not end up seeing the benefits of a good portion of their taxpayer dollars.

“The other thing to consider is even with a single tax rate, when corporations are spending the same as homeowners, they don’t use nearly as many of the town’s resources as a homeowner does,” he said. “Fifty-five cents out of every dollar or so go to the school system, so in effect, they’re paying 55 percent more than they use right there. Plus, there are things like trash pick up that they are paying for, but don’t use.”

With Lenox and Milton Bradley being the two highest taxpayers in the town, according to Driscoll, East Longmeadow has a vested interest in giving them consideration in order to ensure there is incentive to keep jobs in the area.

“I think Massachusetts is not the easiest state to do business in and if we can provide a sensible rate for our corporate partners, it gives us a better chance of keeping jobs locally,” he said. “It’s a competitive environment and the single tax rate, I think, helps give us a chance to keep companies from moving jobs to Rhode Island or to the South.”

In addition to helping keep jobs with large corporations, the single tax rate benefits locally owned businesses in a weak economy.

“It’s definitely a help to the small businesses, the Reminders and Romito [And Sons], and the Chamber of Commerce,” Driscoll said. “I’ve been a small businessman and I know how tough it can be.”

The tax rate for FY12 has not yet been set. The current tax rate for FY11 is $17.57.

“Once we certify the free cash, then we’ll be able to set the tax rate,” Driscoll said. “We’re way ahead of schedule at this point.”