CLT UPDATE
Tuesday, June 19, 2007

Memo to the Legislature, Joint Revenue Committee


The following memo was sent to all legislators at the State House this morning.  A copy of it will be hand-delivered to the members of the Joint Committee on Revenue later this morning by CLT Associate Director Chip Faulkner.  The committee will be hearing these and other bills concerning taxes during today's session.  Chip Faulkner will be there to present CLT's testimony and position.


To:  Members of the General Court
         June 19, 2007
Re:  The Override/Underride - In support of S.1702 and H.2869

Almost everyone nowadays seems to agree on the need for property tax relief.

As we await Governor Patrick’s promised plan (and we do not count new local option taxes as property tax relief), we continue our longstanding support for property taxpayers. More often than not, Proposition 2˝ overrides are failing this year. Our bill, S.1702, would prevent local taxpayers who vote "no" from being harassed (and local officials from being pressured to harass them) with more than one override a year on the town ballot. This also saves communities the cost of multiple elections.

The second part of our proposal, similar to Rep. Paul Casey’s bill, H.2869, gives local voters a chance to cut their property taxes with an "underride". At present, selectmen can put an underride on their local ballot; in most cities and some towns with an initiative provision in their charter, citizens can do this themselves by collecting signatures. These bills would expand this ability to citizens of all communities should their property tax bills become unbearable, or if they regret an override vote.

An example of regret would be voting for an override to make up for lost local aid, only to have that local aid restored later in the budget season. Another example might be voting for CPA taxes thinking they would be used to preserve natural open space, only to learn the money will be used to replace trees with artificial grass.

We do not support bills that exempt senior citizens from paying for overrides; those who vote on a local ballot question should all have a stake in its outcome. As an advocate of this exclusion admitted at an earlier hearing, the intent is to keep seniors home on override election day so that overrides will pass.

We do support proposals to assist communities with their pension and health insurance costs by having them opt into the state system – as a first step. Serious reform of these systems, bringing them in line with benefits in the private sector, must be done as well if property taxes are to be controlled, never mind relieved.


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