Thursday, December 14, 2017 22:52

Posts Tagged ‘TIF’

Common Sense Prevailed Last Night

Thursday, December 10th, 2009

The tax burden via the real estate tax split that has been levied for years on commercial and Industrial property owners has been a disincentive to stay in Clinton, or for businesses to locate or relocate here. Look at the empty mills and storefronts on High St. Some business failures and closings are obviously due to to the economy but you have to wonder how many of those would still be here if we had equitable tax rates for all…something I’ve pondered for quite a while.

Chairman Dickhaut seems to believe TIF’s are the answer, but they only last a finite amount of time and are only good with regard to new businesses. This is like when you open an account somewhere and they give you a better introductory rate. then it goes up and stays there. Existing businesses get no break other than the reduction of the rate split. Don’t get me wrong, the TIF is a good tool to have but is only one tool, not the be all end all of economic development.

Also Commercial and Industrial property values have not diminished in value like residential properties have, resulting in a double whammy on our businesses. The difference between the average increase and the increase with the split adjusted down to 1.65 is $28 per year which translates to $7 per quarterly bill. This is a pittance and doesn’t even register on my radar screen, for the record I’m a fiscal conservative.

When I was on the BOS the split we inherited was 1.75. We dropped it two years in a row at that time Scholastic Books decided to relocate in Clinton citing the business friendly reductions of the rate split. Last year the newly seated BOS raised it to the maximum level, also called the red zone by the business community. In fact when looking statewide businesses avoid communities that are at the max.

I can only hope the BOS has seen the light and this trend continues, if it does and more businesses were to locate here it would have the effect of actually reducing our residential tax burden even though we have a lower split, because more business would be paying taxes into our coffers.

I applaud Selectmen Haley, Sheridan and Connolly for having the courage and common sense to reduce the split, you did the right thing! Congrats…