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CLT UPDATE
Friday, November 11, 2016

America survives again!


"(We) strongly recommend that the Legislature and governor take steps necessary to increase tax revenues available to meet the state's urgent unmet educational and infrastructure needs."

Board of Editors of MassBenchmarks, a journal of the Massachusetts economy published by the UMass Donahue Institute.

"You mean there are actually people existing in Massachusetts who think we need more taxes?"

Chip Faulkner, director of communications for Citizens for Limited Taxation

Beacon Hill Roll Call
Monday, October 24, 2016
Heard on Beacon Hill
'We need more taxes?'
Yes, says UMass institute


And Republican Lieutenant Governor Karyn Polito — standing in for Baker, who was out of state — criticized the 3.75 percent tax on marijuana embedded in the referendum as likely inadequate to cover oversight costs of the new industry.

Polito, who opposes legalization, did not directly answer questions about whether the administration would be open to raising the tax, nor whether such a move would violate its no-new-taxes promise....

Massachusetts low-tax advocates were displeased with top policy makers’ stance.

“This adds whole new meaning to the comment that taxes are too high,” said Chip Faulkner, communications director for the Marblehead-based Citizens for Limited Taxation, saying he opposed the prospect of raising a tax that has not even been put in place.

He said it’s premature for politicians to be guessing how much revenue marijuana legalization would bring in, should voters pass it.

“Nitpicking us to death is what they’re doing with that,” he said. “It’s killing us with a thousand cuts — hitting you here, hitting you there. We’ve got enough fees and taxes in this state.”

The Boston Globe
Tuesday, October 25, 2016
Top lawmakers are open to raising marijuana tax


'Nothing more than a money grab'

The promise of additional state funding has led voters in three other North Shore communities — Salem, Beverly and Manchester — to adopt the act in recent years.

Other communities, including Marblehead, have rejected similar proposals.

Chip Ford, executive director of Citizens for Limited Taxation, which authored the Proposition 2½ tax cap adopted in 1980, said most communities that have adopted the CPA were sold by advocates on a guaranteed, 100-percent match from the state.

With its pool of money dwindling, the program has become "nothing more than a money grab" for local governments, he said.

“It’s just another tax increase, at a time when people are struggling to get by,” Ford said. “You’re raising taxes for something that’s not specific and handing over those tax dollars to an elite group of people who get to decide which projects are put forward.”

The Salem News
Thursday, October 27, 2016
Preservation money dwindling as more towns sign up


It's now a waiting game to see if the town adopts the state Community Preservation Act that provides funds for open space, history, affordable housing and recreation through a property tax surcharge.

The measure is Question 5 on the Wrentham ballot. Wrentham is the only area town with a fifth referendum question on Tuesday's general election ballot....

Selectmen voted unanimously for the town meeting request, but some board members have concerns with the tax impact of the CPA and process. The CPA has also been endorsed by the housing authority, historical commission, recreation committee, open space committee and conservation commission.

However, former longtime resident Francis "Chip" Faulkner of Citizens for Limited Taxation has been urging residents to reject the CPA.

Faulkner calls it a "tax scam," a "feel good tax hike" and tax on top of "already high property taxes."

He also points out the town already has a lot of protected land.

The Sun Chronicle
Friday, November 4, 2016
In Wrentham, voters face decision on land preservation


"I continue to occasionally have (fundraising) events, and you never know what you're going to have in terms of opposition, so it's always good to be prepared, and to continue to make sure that there's adequate resources."

House Ways and Means Chairman Rep. Brian Dempsey (D-Haverhill) telling the State House News Service why he has some $550,000 in his campaign account while he has not had an opponent in many years.

"He needs $550,000 for a campaign war chest?  What war does he intend to fund World War III?"

Chip Faulkner, director of communications of Citizens for Limited Taxation (CLT).

Beacon Hill Roll Call
Monday, November 7, 2016
Heard on Beacon Hill
By Bob Katzen


Chip Ford's CLT Commentary

Wow, what an historic election for the presidency of the United States of America.  Can you imagine how we'd be feeling right now if it had gone the other way?  Hopelessness would describe my disposition.  America is fortunate in that when things look blackest we citizens in large enough number rise and make the necessary change that turns the darkening night into a new sunrise, another "Morning in America" in the nick of time.
 
19 states and the District of Columbia were carried by the Clinton/Kaine ticket.  29 states were won by the Trump/Pence ticket.  (New Hampshire and Michigan are somehow still counting.)  At this moment President-Elect Donald J. Trump soon to be our 45th president  has 290 electoral votes vs. Hillary Clinton's 228.  As has been acknowledged by all everywhere, this was a stunning result.
 
As usual, in "The Bluest State" (as WBZ TV's Jon Keller in his book termed Massachusetts), we are still swimming against the tide.  The Bay State's "enlightened" voters chose Clinton over Trump by a 61% to 34% margin.  Not that those 11 electoral votes helped her nationally.
 
On Beacon Hill the "loyal opposition" Republicans picked up one additional seat in the Massachusetts House of Representatives.  Republican Will Crocker won the open seat in the Second Barnstable District bringing the total pro-taxpayer count in the House to 35, and held onto the 6 seats in the state Senate.
 
Of CLT's 2½ PAC endorsed candidates, 20 were victorious and 11 were defeated.

We can all take a deep breath and exhale now that the nation has been saved from what could have been.  Then it's time to roll up our sleeves and ramp up for the challenges ahead, especially here in "The Bluest State."  One thing we as Massachusetts taxpayers know for certain is that we can never rest, more challenges are about to confront us.  We will be ready for them, as always.

Chip Ford
Executive Director


 
The Boston Globe
Tuesday, October 25, 2016

Top lawmakers are open to raising marijuana tax
By Joshua Miller


Creating a potential quandary for the no-new-taxes administration of Governor Charlie Baker, Massachusetts’ top two Democratic lawmakers said Monday they are open to raising taxes on marijuana, should voters pass a ballot question to legalize the drug next month.

And Republican Lieutenant Governor Karyn Polito — standing in for Baker, who was out of state — criticized the 3.75 percent tax on marijuana embedded in the referendum as likely inadequate to cover oversight costs of the new industry.

Polito, who opposes legalization, did not directly answer questions about whether the administration would be open to raising the tax, nor whether such a move would violate its no-new-taxes promise.

But after meeting with Senate President Stanley C. Rosenberg and House Speaker Robert A. DeLeo, Polito told reporters: “This is a new industry. And compared to other states like Colorado, the question, in our view, is flawed because it has a tax rate that, in our view, most likely would not cover the costs to regulate the industry.”

Rosenberg, who supports legalization, said “yes, I would” be open to raising the tax beyond what’s in the ballot question. He said he’s not convinced that the rate in the proposed law is enough to fund enforcement and regulation of the new industry, as well as addiction treatment, and public health and safety concerns.

DeLeo, who along with Polito and Baker strongly opposes legalization, said “sure” he was open to raising the tax. “Should the voters decide on passing it, everything and anything would be on the board in terms of whether it’s taxation, whether it’s regulation,” he said.

The Massachusetts measure would create a 3.75 percent tax and give cities and towns the option to add an additional 2 percent tax on sales. That would be in addition to the state’s 6.25 percent sales tax. But the marijuana levy would be much lower than in other states where voters have legalized the drug. Washington State imposes a 37 percent tax, for example.

Massachusetts low-tax advocates were displeased with top policy makers’ stance.

“This adds whole new meaning to the comment that taxes are too high,” said Chip Faulkner, communications director for the Marblehead-based Citizens for Limited Taxation, saying he opposed the prospect of raising a tax that has not even been put in place.

He said it’s premature for politicians to be guessing how much revenue marijuana legalization would bring in, should voters pass it.

“Nitpicking us to death is what they’re doing with that,” he said. “It’s killing us with a thousand cuts — hitting you here, hitting you there. We’ve got enough fees and taxes in this state.”

And Jim Borghesani, the chief spokesman for the pro-legalization YES on 4 campaign, said when it comes to the measure, “anybody who suggests that there won’t be sufficient revenue to cover expenses is flat out wrong.”

Proponents estimate the tax would bring in $100 million of state tax revenue in 2020. They say the rate is meant to be low enough to quickly snuff out the black market. Higher taxes, they argue, would encourage people to keep buying from dealers on the unregulated market.

A special Senate committee led by Senator Jason M. Lewis, an opponent of legalization, estimated Massachusetts would collect “$50-60 million in total annual marijuana taxes and fees within the first few years of legal recreational marijuana sales.”

Baker, during his 2014 campaign for governor, said he would not raise taxes or fees.

“I’m not gonna raise taxes,” he said in one debate with Democrat Martha Coakley.

“I’m not going to raise fees,” he said in another. He has not always lived up to that pledge, signing a small fee increase into his first budget in 2015.

Baker has repeatedly said enacting levies on a “new service” that the government has never done before would not be breaking his pledge. For example, he signed into law a 20-cent per-ride fee on ride-hailing services such as Uber and Lyft as part of a bill regulating the industry.

Question 4 would eliminate penalties for possessing, using, or purchasing marijuana starting Dec. 15 and would allow recreational shops to open in 2018. It would create a Cannabis Control Commission charged with overseeing the new industry and making regulations to protect public health and safety.

In 2008, Massachusetts voters decriminalized marijuana, replacing the criminal penalties for possession of one ounce or less with a new system of civil penalties. In 2012, voters legalized marijuana for medical use.
 

The Salem News
Thursday, October 27, 2016

Preservation money dwindling as more towns sign up
By Christian M. Wade, Statehouse Reporter


Voters in Danvers and Amesbury are among 16 communities deciding whether to adopt the Community Preservation Act to save land from development, spare historic buildings and build new playgrounds and parks.

If voters approve in the Nov. 8 elections, those communities will join 160 others that impose a property tax surcharge, ranging from 1 to 3 percent, to pay for affordable housing, open space and historic preservation. The state provides matching grants to fund those projects.

But, in recent years, state funds have dwindled and left cities and towns with a larger share of the cost of those projects. Of 16 communities north of Boston that ratified the CPA, the state's contribution has averaged less than 40 percent in the past decade, according to the Department of Revenue.

In the current budget year, the average statewide match is 19 percent.

"The match used to be a good deal," said Amesbury Mayor Ken Gray, who opposes the additional tax. "Ten years ago, when it was still a 100 percent state match, it might have made sense. We've made huge progress reducing the tax burden. Why would we do this now?"

Opponents such as Gray, who frame the debate in terms of increased taxes, say dwindling state funds mean communities get little in return on the investment.

More demand than cash available

In recent years, the state Legislature has passed supplemental budgets to replenish the state's Community Preservation Act trust fund, which is bankrolled by fees imposed on most documents recorded at county registries of deeds. Gov. Charlie Baker pumped $10 million into the fund from reserves as part of the fiscal 2017 budget.

But demand from communities has far outpaced the availability of money from the state.

Clarissa Rowe, an Arlington architect and chairwoman of the Community Preservation Coalition, which supports the tax, noted cities such as Boston, Springfield and Holyoke are considering the surcharge. This means the Legislature needs to approve more funding, she said.

"It's been a very successful program, and that's why the funds are low," she said. "With this new group of communities possibly coming in, the fund is going to get so low that everyone is going to be squawking to legislators to approve more matching funds."

Sally Kerans, a former lawmaker leading the effort to adopt the tax in Danvers, said communities struggling to find money to fix historic buildings and protect land shouldn't overlook potential money from the state, even if the match is low.

"If there are state funds out there, why wouldn't we take them?" she said.

Keith Lucy, a former Danvers selectman and opponent of the tax, called it an "irresponsible" way of funding local improvements.

"Rather than raising money and figuring out how to spend it later, we should be identifying the need, finding out what the cost is, and determining whether or not to fund it," he said. "Supporters say this is free state money, but it's really not."

CPA's origins

The preservation program has its roots in the Nantucket Islands Land Bank, created in 1983 to acquire open space. It grew in popularity and became a model for preservation across the state.

The Legislature approved — and then-Gov. Paul Cellucci signed — the statewide Community Preservation Act in 2000. Initially the state matched local funds for projects dollar-for-dollar, but a recession and housing crisis depleted its funds.

Typically, once a city or town adopts the act, a local committee decides how to spend the money. Local officials must approve projects.

In most cases, low-income residents are exempt from the surcharge, and the first $100,000 of a property's value is excluded.

Despite the state’s dwindling share, the preservation trust fund has spent more than $542 million statewide — including $100 million on projects north of Boston — since communities in the region began signing onto the program in 2002.

CPA north of Boston

North Andover, which adopted the tax in 2001, has banked more than $23 million in local and state funds — more than any community in the region — according to the Department of Revenue. That money has paid for a number of initiatives, including $186,000 to restore the Stevens Pond bathhouse and $300,000 for new ballfields.

Peabody wasn't far behind, adopting the CPA in 2002. In the past 14 years, the city has drawn on the funds for numerous projects — acquiring hundreds of acres of open space and recreation land, preserving historic properties (including City Hall) and even building a museum in tribute to the city's leatherworkers.

In addition to affordable housing developments, the city also regularly uses a portion of its CPA funds to support its housing rehab programs for low- to moderate-income homeowners.

Newburyport has used money to preserve open space, including 293 acres of the 700-acre Common Pasture, a scenic swath of agricultural land on the Newbury border.

The city has collected more than $8.9 million since it ratified the act in 2004, but the state has only contributed about 37 percent of that.

Gloucester has by far the lowest state match in the region, averaging 25 percent. The city has collected nearly $2.5 million in state and local funds since 2010, but the majority of that comes from the local property tax surcharge.

Gloucester has devoted much of its money to historic preservation, including repairs to City Hall and the Cape Ann Museum.

Most of the funds collected through the act north of Boston go toward recreational projects. Georgetown used $100,000 to build two tennis courts, for example, and $135,000 to rebuild the American Legion Park. It also used funds to preserve walking trails.

'Nothing more than a money grab'

The promise of additional state funding has led voters in three other North Shore communities — Salem, Beverly and Manchester — to adopt the act in recent years.

Other communities, including Marblehead, have rejected similar proposals.

Chip Ford, executive director of Citizens for Limited Taxation, which authored the Proposition 2½ tax cap adopted in 1980, said most communities that have adopted the CPA were sold by advocates on a guaranteed, 100-percent match from the state.

With its pool of money dwindling, the program has become "nothing more than a money grab" for local governments, he said.

“It’s just another tax increase, at a time when people are struggling to get by,” Ford said. “You’re raising taxes for something that’s not specific and handing over those tax dollars to an elite group of people who get to decide which projects are put forward.”


The Sun Chronicle
Friday, November 4, 2016

In Wrentham, voters face decision on land preservation
By Stephen Peterson


WRENTHAM - It's now a waiting game to see if the town adopts the state Community Preservation Act that provides funds for open space, history, affordable housing and recreation through a property tax surcharge.

The measure is Question 5 on the Wrentham ballot. Wrentham is the only area town with a fifth referendum question on Tuesday's general election ballot.

Voters have opposed the CPA over the years, but a group of residents gathered more than 400 signatures to get the question on the ballot.

The proposed 1 percent surcharge on property tax bills would cost the owner of a $400,000 home about $45 a year. The first $100,000 in valuation is exempt.

"It's a fairly low amount," said conservation commission Vice Chairman Barry Kassler, who also chairs the open space committee and has helped spearhead the CPA campaign.

The state, through money collected for deeds recorded at county registries, matches 19 percent of what a community raises with the CPA. Wrentham residents paid about $50,000 for transactions last year.

Kassler works part time as an advisor to a CPA committee in Stoughton, and said he decided to push the local CPA effort again after seeing what Stoughton has done with CPA funds.

"By adopting the CPA we are investing in our future," said conservation commission chairman Leo Immonen, who has been helping Kassler with the CPA effort. "With such a fund, the town will be in position to make legitimate offers for valuable parcels when the opportunity arises. Currently, the town has been unable to slow the development of valuable open space."

The surcharge will be less than $1 a week for most residents, Immonen said.

More than 160 Massachusetts cities and towns have adopted the CPA since it began 16 years ago, he said, and none have opted out.

The CPA ends up keeping taxes lower by allowing the purchase of land that would likely be developed into housing that would add more students to local schools, Conservation Agent Darryl Luce said.

"I'm tired of seeing 90-plus house subdivisions cut into what were once woods, I'm tired of traffic getting heavier every year and I'm tired of watering bans," Luce said.

Luce said CPA money can also be used for conservation rights on land that doesn't cost as much as a purchase and allows owners to remain.

If the ballot question is approved, residents at the Nov. 14 fall town meeting would be asked to form a committee to oversee a CPA fund and make recommendations at town meetings on how to spend the money.

Selectmen voted unanimously for the town meeting request, but some board members have concerns with the tax impact of the CPA and process. The CPA has also been endorsed by the housing authority, historical commission, recreation committee, open space committee and conservation commission.

However, former longtime resident Francis "Chip" Faulkner of Citizens for Limited Taxation has been urging residents to reject the CPA.

Faulkner calls it a "tax scam," a "feel good tax hike" and tax on top of "already high property taxes."

He also points out the town already has a lot of protected land.

In November 2006, residents rejected the CPA by just 232 votes. At that time, a proposed 2 percent surcharge would have added an estimated $75 to the average tax bill.

It marked the third time residents have voted on the CPA. One of those times, the CPA was coupled with a $1.13 million tax increase via a Proposition 2½ override, and both were soundly defeated.

Kassler said there has been a lot of feedback from residents, particularly those who have moved into town the past several years, who have singled out the value of green space in town.

In the Attleboro area, only Norfolk and Rehoboth have accepted the CPA. In May 2012, Norfolk residents voted to reduce the CPA surcharge from 3 percent to 1 percent of their tax bills.

 

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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