Senate Finance Committee OKs Cote, Picard's Supplemental Tax Bill

All five RI Senate Finance Committee members present voted to approve Senators Marc Cote D-Dist 24 and Roger Picard's (D-Dist. 20) supplemental tax bill, S820, Tuesday afternoon.

The bill, which would allow the City of Woonsocket to raise taxes beyond the four percent cap, adding $2.5 million to the base as part of the Woonsocket Budget Commission's 5-year-plan,  is now on the Senate calendar for Thursday, May 9. 

"The supplemental tax will be raised by increasing the levy on 2 motor vehicles and trailers by up to twelve and seven tenths percent (12.7%) and by increasing the levy on residential real estate, including residential properties with eleven units or more by up to four and six tenths percent (4.6%) for the city’s fiscal year 2012-2013 only," according to the bill.

The bill would also allow the city to create an elderly tax exemption, fixing the amount annually.

"They really didn't have any questions for us today," said Finance Director Thomas Bruce last night. Bruce, City Council President and Budget Commission member John Ward, and Woonsocket Schools Superintendent Giovanna Donoyan attended the hearing, he said. 

According to an e-mail City Tax Assessor Chris Celeste sent the Commission April 11, an analysis of the FY 2014 tax levy assuming a 4 percent increase, keeping the existing homestead exemption phase out for 2 and 3-family homes and accelerating the singe-family phase out according to the 5-year plan (without factoring in the $2.5 million supplemental tax increase) would produce the following tax rates:

Residential: $32.73

Commercial:$37.38

With the $2.5 million supplemental tax increase, those rates are:

Residential: $34.49

Commercial: $39.79 

Bruce said the city's Representatives, under the leadership of Rep. Lisa Baldelli-Hunt (D-Dist 49), will likely introduce a companion bill, reaching the $2.5 million supplemental tax figure via a different formula.