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Date: 11/9/2022
CHICOPEE – The City Council voted unanimously to approve a new tax rate for fiscal year 2023 (FY23) during an Oct. 25 special meeting. The approved rates are $15.15 per $1,000 of value of residential properties and $32.84 per $1,000 for businesses and commercial properties – a reduction from last year’s $16.99 per $1,000 for residential and $37.40 per $1,000 for businesses.
The decreased rates come amidst significant rises in property values. Single-family homes increased in value to $252,048 – a $36,430 increase from FY22 – while commercial and industry properties rose to $715,522 – an $89,146 increase from FY22.
The source of the decrease FY23 tax rate stems from funds set aside by the city for tax relief. The City Council approved Mayor John Vieau’s request to appropriate $3 million toward the FY23 tax levy during a May 17 meeting. The $3 million equates to an average decrease of $118 per tax bill.
Vieau aspired for the relief funds to ease some of the property value increases while reducing some financial burdens stemming from the coronavirus pandemic.
“Frankly, we have the wherewithal in discussions with our financial team to help our taxpayers … This $3 million should help moderate some of the increases in the 2023 budget,” said Vieau during the May 17 meeting.
The city also allocated $3 million in tax relief for the FY22 budget. City Assessor Victor Anop said the city previously had not contributed that many funds towards tax relief since 2010.
During the Oct. 25 City Council meeting, councilors and the city’s assessors analyzed the city’s tax situation. Even with the relief funds and lower rates, the FY23 tax bills still increased by an average of $155 for residential taxpayers.
Ward 2 City Councilor Shane Brooks said the increase still reflects an effort to ease financial burdens on residents.
“We will get critics about an increase, albeit small, but it does reflect the city’s effort to try not to hurt the residential taxpayer,” said Brooks.
Ward 3 City Councilor Delmarina López raised some questions about the city’s voting history for tax exemptions.
In the past, the council voted against residential, open space and small commercial tax exemptions. The residential exemption would increase the burden for landowners who are not Chicopee residents, the open space exemption awards discounts to open space properties and the small commercial would give a tax exemption to businesses with less than 10 employees.
López inquired as to why the city votes against residential and small commercial exemptions.
“I do think that it makes a difference, even if it’s a small decrease,” said López.
City Councilor At-Large James Tillotson argued that any residential increase on landowners would “snowball” to others, such as with tenants of apartment complexes.
“If you shifted it somewhere else, the rest of us would have to pay for it ... there’s no free lunch here,” said Tillotson.
In consideration of a small commercial exemption, López suggested that even a small exemption of 1 to 2 percent could make a sizable impact.
“All commercial owners are not the same ... the hit that small businesses took, why would we not want to shift the burden to larger businesses,” questioned López.
The councilors and assessor team said there is merit in the proposal, but argued that the implementation of a small commercial exemption would significantly delay the FY23 tax process. City Assessor Laura McCarthy said the exemption proposal will be considered during next year’s tax process.
The council ultimately defeated two motions to provide residential and small commercial exemptions.
After the meeting, Vieau expressed his support for the FY23 tax rate. The mayor applauded the council for establishing some of the lowest rates in Hampden County. The average tax bill for residents is the second lowest in the county, only trailing the FY23 residential tax bill established by Springfield.
“Our goal is to keep Chicopee affordable,” said Vieau in an interview with Reminder Publishing.
Vieau stressed that tax management is a “delicate balancing act” as the city seeks to provide relief while fortifying essential services.
“I don’t want to cut services, I’m trying to find creative ways to make them better,” said Vieau.
The mayor also aspires to continue easing residential burdens by focusing on economic growth in Chicopee.
“Our goal is to continue to promote economic development,” said Vieau.