City Council votes to ease small business tax burden

Date: 9/13/2011

Sept. 14, 2011

By Debbie Gardner

Assistant Editor

AGAWAM — Saving money — for taxpayers and the town — were the focus of the Sept. 6 City Council meeting.

One item — reducing the business tax rate on personal property — easily won approval. The other — a citizen’s suggestion that the town consider eliminating the Oct. 22 preliminary election — elicited discussion and debate.

During citizen’s speak time, town Assessor Kevin Baldini, told the council approval of a proposed resolution to increase the minimum fair cash value on taxable personal property for small businesses from the current figure of $500 to $10,000 would have a positive effect on 600 small businesses in town.

“This would be a shot in the arm for small businesses,” Baldini said. “It would create more business growth and thus, defray the residential tax rate.”

Town Collector Laurel Placzek also spoke in favor of the proposed amendment, noting that in the first quarter of this year her office had sent out 72 bills for taxes of less than $5, and 159 bills for less than $10.

An information sheet on the proposed amendment shows approximately 200 businesses in town would reach the $10,000 taxable threshold. These businesses represent 98.3 percent of the town’s $105 million in taxable personal property. The 600 businesses released from this tax burden represent 1.7 percent of the taxable property.

Mayor Richard Cohen, who spoke as a resident, said he felt this was an opportune time to show support of the town’s small business base.

“Any kind of relief we can give small businesses without hurting our tax rate, we should do,” Cohen said.

Six Flags President Jason Freeman, appearing as a member of the West of the River Chamber of Commerce, also spoke in support of the amendment.

The amendment passes by a vote of 9-2-0, with Councilors Robert E. Rossi and Gina M. Letellier, both of whom have connections to small businesses in town, abstaining.

Also during the citizen speak time, resident Mark Katsoulis proposed, “that Agawam waive the preliminary election” and petition the legislature to allow the town to conduct just a general election in November.

He said, as the mayor’s seat is the only contested race, it made little sense for the town to spend an estimated $8,000 to let the three mayoral candidates “learn where they are strong and where they are weak.”

Councilor Dennis Perry revisited Katsoulis’ suggestion during the meeting, asking if the council could look in to eliminating the preliminary election as a cost-saving measure.

Councilors Rossi, Joseph Mineo, Jill Simpson and George Bitzas all supported Perry’s suggestion.

Though in favor of the suggestion, Councilor John Walsh questioned what might happen if the preliminary election was eliminated, and in a three-way race, such as that for the mayor’s seat, no candidate received 50 percent of the vote.

“Will that create a problem?” Walsh asked, noting that if the winner were to receive only 48 percent of the vote, that candidate would not clearly be “the choice of the people.”

Town Clerk Richard Theroux told eminder Publications Katsoulis’ remarks were not the first time he’s heard the suggestion to eliminate the town’s preliminary election this year, when there were only three candidates on the ballot.

“I’m spending money with the staffing and the machines as if there were 30 candidates,” he noted.

He said he has contacted the Secretary of State’s office about eliminating Agawam’s preliminary election, but “given the Town Charter and the time frame ... there is not enough time to process [the request].”

Theroux said he considered submitting a petition to the Legislature in the spring requesting a preliminary election waiver, but was unable to proceed because it was unclear how many individuals would be seeking offices this fall.

“That’s really the issue,” Theroux continued. “These elections, in my time, have come down to [where] there aren’t the candidates for public office that there used to be.”

Debbie Gardner can be reached by e-mail at debbieg@thereminder.com