Town’s new residential tax rate set at $26.14

Town’s new residential tax rate set at $26.14

NORTH PROVIDENCE – The town’s new residential tax rate, with a 28-cent tax increase factored in, will be $26.14, said Mayor Charles Lombardi this week, or $1.80 lower than the 2016-2017 rate of $27.94 per $1,000 of assessed value.

After a town-wide revaluation saw property values bumped up by 8 percent overall, Tax Assessor Tom Kane this week certified the tax roll at a rate of $25.86 after factoring in the equalization of property values, said Lombardi.

The town is required to lower its rate to account for higher values before instituting a tax rate increase or decrease.

For the average owner of a $200,000 home, their annual property tax bill will go up by about $46 with a 20 percent homestead exemption factored in, said Lombardi, or $4,470 to $4,516. If that same family has a $15,000 car, they’ll save about $23 with the town’s new $1,000 car tax exemption replacing a $500 exemption, for a $23 increase overall when counting residential and car taxes.

Lombardi emphasized that the $23 increase is an average. Due to widely differing changes in values, some taxpayers will see a bigger increase in taxes, some will see a decrease, and some will stay about even.

The mayor said the 28-cent tax increase, though not desirable, keeps North Providence on solid financial footing as it begins the process of paying off a pending school bond.

On the commercial side, the tax rate will drop from $34.68 to $32.88, with the 28-cent increase factored in. With just the certified revaluation numbers, the new rate would be $32.60. The owner of a $500,000 commercial property that stayed even in value will now pay about $1,000 less in taxes. If that same property increased by $50,000 in value, the 2017-2018 tax bill will be about $800 more for that property owner.

The Town Council, by a 5-2 vote, passed Lombardi’s $99.3 million budget two weeks ago. Town Councilors Ray DeStefanis and Stephen DiLorenzo, two Lombardi allies, voted against the budget, saying they felt the town could go without a tax increase this year.

According to Lombardi, this year’s budget is based on a projected tax collection rate of 95 percent overall. That includes a collection rate of 98 percent for residential and commercial property, 89 percent for personal property, and 80 percent for car taxes.

Comments

Add the numbers up and the taxes go up again with our Mayor saying all the way no new taxes for his last four years. This is another Fake budget put together by incompetence at its worst. Where does it end, off the cliff as costs increase 8-10% a year, do the math, same as Obama Care, unsustainable.