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CLT UPDATE
Monday, February 8, 2016
Committee to hear CLT's bill to
improve Prop 2˝
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REVENUE COMMITTEE: Bills filed by Sens. Humason
and Tarr to improve tax administration processes are before the
Revenue Committee for a public hearing, as well as a portion of Gov.
Baker's municipal government modernization bill (H 3908). The panel
will also consider bills dealing with boat excise tax revenue on the
Chatham waterfront, requiring a waiting period for new taxes, and
allowing a property tax underride in all communities. (Tuesday, 1
p.m., Room B-1)
State House News Service
Advances: Week of February 7, 2016
C. UNDERRIDES
A levy limit underride decreases the amount of
property tax revenue a community may raise in the year specified in
the underride question and in future years. It decreases the
community's levy limit and becomes part of the base for calculating
future years' levy limits. The result is a permanent decrease in
taxing authority.
G.L. c. 59, § 21C(h).
The board or council must vote the question exactly as it will
appear on the ballot.
1. Overrides and Underrides A majority vote of the board or council
is needed to place an override or underride question on the ballot.
G.L. c. 59, § 21C(g) and (h).
Proposition 2˝ Ballot Questions; Requirements and Procedures
This year we are filing a bill to limit override elections to one
a year. Its theme is, "What part of NO don't they understand?" The
bill also would create an "underride" provision for all communities,
allowing 10 percent of registered voters to place a question on the
local ballot to cut property taxes.
Barbara's Column
The Salem News
December 1, 2004
Anderson's group is pushing legislation that
would ask communities to wait a year before seeking an override if
an earlier attempt fails, and would also make it easier to seek an "underride"
to lower taxes. That legislation is being sponsored by state Senator
Scott Brown and state Representative Richard Ross, both Wrentham
Republicans.
The Boston Globe - West
March 13, 2005
We have also filed bills that would help all
taxpayers by limiting the number of overrides to one a year, and
allowing an underride in all communities, not just the few that
presently have the ability to place a tax cut on local ballots.
CLT News Release
July 18, 2006
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.
CLT Memo to the Legislature
June 19, 2007
The Override/Underride - In support of S.1702 and H.2869
On Thursday, September 15th the Joint Committee
on Revenue held an 11 am hearing at the Statehouse on several bills.
I [Chip Faulkner] attended this hearing to testify in favor of one
of them, Senate 1513. This bill was submitted by Citizens for
Limited Taxation with the sponsorship of Republican Senators Hedlund,
Ross and Tarr. It contains two changes to Proposition 2˝: Overrides
would be held only at a biennial state election and underrides could
be put on the ballot if the signatures of 5% of the town’s
registered voters were collected.
CLT Update
September 21, 2011
CLT Testifies for Prop 2˝ at Statehouse Hearing
It’s a rare move: A town or city voting to reduce
the amount of money that can be raised by property taxes, according
to state data.
This is known as an underride of Proposition 2˝,
which permanently reduces a community’s tax levy limit. Many cities
and towns pitch overrides, which raise the tax threshold for
operating and capital expenses.
Hopkinton could be the next to join 13 towns – of
the 351 communities in the state – to pass an underride since 1988,
according to the state Division of Local Services....
The largest underride amount in the state was in
Plymouth in 1995 for $2 million, and the smallest amount of $10,833
in Gill in 2004.
The most recent underride vote was in West
Newbury in 2012 reducing real estate and personal property taxes by
$180,000. The town also approved another underride for $170,000 in
2011, according to the data.
Williamsburg has also passed two underrides, the
first in 1997 ($51,580) and again in 2001 ($35,407).
Other towns that have adoped underrides: Ayer,
Dennis, Groveland, Holland, Lancaster, Orleans, Sandwich, Shelbourne
and Upton.
MetroWest Daily News
April 9, 2014
Underrides a rare move, data shows
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Chip Ford's CLT
Commentary
Beyond limiting property tax increases to
2.5 percent per year (and reducing the auto excise [tax] by
62 percent), our Proposition 2˝
provides for overrides — and underrides — which municipal
voters must approve on their local ballot. The problem with
underrides is it usually requires a majority vote of the
local appropriating authority; a city council or board of
selectmen.
CLT's bill would improve our
1980 Proposition 2˝ law:
● The people
themselves would be able to put an underride on the next
biennial election ballot by collecting signatures of five
percent of the city's or town's registered voters.
● CLT is
trying to prevent "What Part of 'No' Don't You
Understand" recurring over-and-overrides after defeat.
Proposition 2˝ overrides would
appear only on biennial ballots, not as soon as the last one
was defeated.
● Our change
would also put a limit of not more than three override
questions on any ballot, to avoid the "cafeteria-style"
assault on taxpayers.
We've been fighting for these
improvements to our law for over a decade now. Today we have a
taxpayer-friendly governor — Charlie Baker — in the corner office. Our
bill, CLT's 2016 attempt, will be heard before the Legislature's Joint
Committee on Revenue tomorrow. Chip Faulkner will again be there
to testify in support of our bill,
S1552.
The Joint Committee on Revenue
Members
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Chip Ford
Executive Director |
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MetroWest Daily News
April 9, 2014
Underrides a rare move, data shows
By Jonathan Phelps
HOPKINTON – It’s a rare move: A town or city voting to
reduce the amount of money that can be raised by property
taxes, according to state data.
This is known as an underride of Proposition 2˝, which
permanently reduces a community’s tax levy limit. Many
cities and towns pitch overrides, which raise the tax
threshold for operating and capital expenses.
Hopkinton could be the next to join 13 towns – of the 351
communities in the state – to pass an underride since 1988,
according to the state Division of Local Services.
Selectmen voted 4-1 last week to bring a $1.25 million
underride before voters at the annual town election on May
19. It will require a majority vote to pass.
However, property owners should not expect to see lower tax
bills if the underride passes. Those bills might not rise as
much if the underride vote is successful.
The maximum amount of taxes Hopkinton is allowed to raise
under Proposition
2˝ – the levy limit – is about $55.6 million for next
fiscal year. The town is using only $53.9 million of that
amount, meaning the town has an excess levy amount of $1.7
million.
The board has proposed to draw the underride from that
excess levy amount, not the town’s operating budget.
Proposition
2˝
was enacted in 1980. The town's most recent override was in 2006
for $1.9 million, according to the data.
The largest underride amount in the state was in Plymouth in 1995 for $2
million, and the smallest amount of $10,833 in Gill in 2004.
The most recent underride vote was in West Newbury in 2012 reducing real
estate and personal property taxes by $180,000. The town also approved
another underride for $170,000 in 2011, according to the data.
Williamsburg has also passed two underrides, the first in 1997 ($51,580)
and again in 2001 ($35,407).
Other towns that have adopted underrides: Ayer, Dennis, Groveland,
Holland, Lancaster, Orleans, Sandwich, Shelbourne and Upton.
Hopkinton’s proposed $1.25 million amount would be the second highest if
approved by voters next month, according to the data. The next highest
was just over $1 million in Lancaster in 2003.
Hopkinton Selectman Chairman John Mosher voted against the $1.25 million
figure, but supports the concept. He recommended an underride of
$800,000.
"Over the past four years, we’ve taken a methodical approach to ensure
responsible long-term planning while making sure immediate needs are
met," he said. "I would have liked to see an $800,000 underride because
it reduced our excess levy capacity in half and then spend the next year
looking at a policy regarding our excess levy capacity."
The Appropriation Committee recommended the underride be between
$800,000 to $1 million, said Mike Manning, chairman of Appropriation
Committee. There were concerns about the possible need for an override
in fiscal 2016 if the amount were too high, he said.
"We weighed the different options," he said. "It is what we were
comfortable with. It gave us a cushion."
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NOTE: In accordance with Title 17 U.S.C. section 107, this
material is distributed without profit or payment to those who have expressed a prior
interest in receiving this information for non-profit research and educational purposes
only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml
Citizens for Limited Taxation ▪
PO Box 1147 ▪ Marblehead, MA 01945
▪ 508-915-3665
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