Date: 3/18/2021
Longmeadow wealth tax is already in place.
It is called a local Property Tax, and it exists in all cities and towns.
As the nation and State debate the wisdom of wealth taxes on the 1 percent and millionaires, we overlook the fact that the MA law forces the cities and towns in MA, to use a “wealth tax” on all its property owners (both residential and commercial) as the Towns major source of revenue.
Longmeadow’s equalized assessment in 2019 (FY) was 2.1 billion for 5500 homes and less than 100 commercial properties.
This property tax resulted in property taxes/revenue to town of 53 million in 2019 – $24.09 per $1000 tax rate.
By Massachusetts law the commonwealth will exclusively get all MA income tax and sales tax (6-1/4 percent) derived from the 15,000 Longmeadow residents and businesses. This exclusive powers of taxation results in $66 million a year sent to MA in recent years, plus unquantified meals tax and tolls etc...
In return Longmeadow gets $7.4 million in local aid each year, for education and roads and bridges.
Massachusetts local aid formulas favor the States 35 Gateway cities (for good reason when adopted) but now to a fault. The formulas have evolved into excessive income redistribution.
The irony of this progressive taxation model is that under the rules of Proposition 2.5 percent and state local aid policies, the town is about to be capped at $25.00 per $1,000 property tax. We will shortly have difficulty funding our labor contracts and operating expenses per a Finance Committee financial model
It is a difficult situation, that if played out, results in the dumbing down of a quality education system, less than level service operating budgets and damage to the town’s bond rating.
At the June 2020 Town Annual meeting the attendees turned down a warrant article that would have recommended the state start a process to exempt Longmeadow and other municipalities, experiencing this confluence of state regulations and local aid policies, from parts of Proposition 2.5 percent legislation.
Pete Landon
Longmeadow
