DiNatale Votes Against Property-Tax Hike Proposal (04/27/10)
Posted 2010-04-28 18:32:55
House strikes property-tax proposal from municipal-relief bill
By Matt Murphy, Sentinel & Enterprise Statehouse Bureau
Posted: 04/27/2010 06:37:35 AM EDT
BOSTON -- House leaders backed off a proposal to allow communities to raise property taxes beyond the 2.5 percent annual cap in order to pay for tax abatements without so much as a fight, striking it from a larger municipal-relief bill aimed at helping cities and towns manage their local budgets in the face of state-aid cuts.
House Speaker Robert DeLeo, responding to widespread criticism from both Republicans and members of his own party, stripped the controversial proposal from the bill. Instead, he allowed an amendment offered by Republican leadership to sail through as the House began debate on the larger package of reforms.
The concession staved off a potential showdown between the House and Gov. Deval Patrick, who threatened last week to veto the bill if the change to Proposition 2 1/2 reached his desk.
Voters in 1980 approved Proposition 2 1/2 limiting the annual increase of property taxes by municipalities to 2.5 percent of the previous year's levy new growth. Last week a key House committee advanced a change to the law that would have allowed towns to raised money beyond the 2.5 percent cap to fund a revolving overlay account used to pay property-tax rebates for homeowners.
House Ways and Means Chairman Charlie Murphy, D-Burlington, adamantly defended the proposal that he wrote as a way for cities and towns to better manage their budgets. He denied the change "equated to a tax increase," and said it would not alter the basic protections of Proposition
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2 1/2.
"Charlie Murphy is adamantly wrong," mocked House Minority Leader Brad Jones when asked about Murphy's defense. "They'll probably admit that they didn't do a good job explaining why this wasn't a tax increase, because it is."
As House lawmakers learned of the proposal late last week, many Democrats joined their Republican colleagues in coming out against the plan and pointed to the speaker's own pledge that the House budget would not include any new taxes.
Rep. Stephen DiNatale, D-Fitchburg, applauded the decision to strike the language from the bill.
"Absolutely, this was the right thing to do," he said.
Cities and towns across the commonwealth set aside $164.4 million to pay for tax rebates and exemptions in 2010.
DeLeo issued a statement last week citing his opposition to tinkering with Proposition 2 1/2, but did not explicitly close the door on the adjustment for overlay accounts. DeLeo spokesman Seth Gitell yesterday referred questions about the speaker's decision to pull the provision back to that original statement.
The larger municipal relief package passed the House unanimously, but failed to address the one thing municipal leaders have been crying out for: health-care plan design.
The bill would give cities and towns a number of local options to save money next year as they prepare to absorb a 4 percent cut to local aid. Provisions in the bill include:
* extending the schedule to fully fund local pension plans from 2030 to 2040
* allowing municipalities to enter into 30-year leases without legislative approval, an increase of 10 years
* allowing cities and towns to join a statewide mutual-aid agreement to provide assistance to neighboring communities for police, fire and EMS services.
* offering early retirement to municipal employees with at least 20 years of service, but excluding teachers
Earlier in the day, Republican gubernatorial candidate Charlie Baker and his running mate, state Sen. Richard Tisei, joined Barbara Anderson, executive director of Citizens for Limited Taxation, in criticizing one-party leadership on Beacon Hill.
Anderson first brought attention to the issue of property taxes last week, prompting Baker, Patrick and Treasurer Tim Cahill, an independent running for governor, to come out against the overlay exclusion.
"They didn't think anyone would notice," Anderson said yesterday at a press conference on the steps of the Statehouse.
Baker said the first impulse of Democrats is to raise taxes instead of cutting the budget and living within their means.
"It's troubling that we have to continually fight to protect Proposition 2 1/2," Baker said.
Baker reiterated his support for rolling back the state income tax from 5.3 percent to 5 percent, and the sales tax from 6.25 percent to 5 percent. He said he hoped to accomplish both goals within his first term as governor. He also said he would eliminate 5,000 jobs in the executive branch.
Patrick responded by criticized Baker for failing to tell voters what services he planned to cut to make up for the loss in revenue.
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