Post Office Box 1147  ●  Marblehead, Massachusetts 01945  ●  (781) 639-9709
“Every Tax is a Pay Cut ... A Tax Cut is a Pay Raise”

45 years as “The Voice of Massachusetts Taxpayers”
and their Institutional Memory

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CLT UPDATE
Monday, March 11, 2019

CLT saved motorists $1.3 Billion just last year


A new report says cities and towns in Massachusetts experienced their strongest revenue gains in a decade during a recent 12-month period.

The Massachusetts Taxpayer Foundation says the state's 351 cities and towns totaled $28.4 billion in revenues and expenditures in fiscal year 2018, a 4.2 percent increase over the previous fiscal year. It was the highest growth rate since 2008....

The trend of fewer Proposition 2½ tax overrides also continued in 2018, with only 20 in Massachusetts compared to 26 the previous year.

Associated Press
Sunday, March 10, 2019
Report: Cities and towns post strong tax growth
A new report says cities and towns in Massachusetts
experienced their strongest revenue gains in a decade


Property tax override attempts are at a 30-year low, cities and towns have roughly doubled their total savings over the past ten years, and municipalities over the past decade have tripled the amount they could raise under the local tax limit but choose not to, according to new data.

The Massachusetts Taxpayers Association's annual report on the revenues and expenses of the state's 351 cities and towns showed just 20 Proposition 2½ property tax override votes in fiscal 2018, the lowest number since 1990.

According to the foundation, which released its report on Friday, municipalities averaged more than 100 override votes per year between fiscal 2001 and fiscal 2010. Twelve of the 20 overrides taken in fiscal 2018 were approved, raising a total of $8.8 million.

Total municipal revenues and spending rose to $28.4 billion in fiscal 2018, a $1.1 billion or 4.2 percent increase over the prior year and the highest rate of growth since the economic recovery began in fiscal 2010. It's the third time in the last five years that growth has exceeded 4 percent.

While Beacon Hill officials are proudly pointing to a state rainy day reserve fund balance that exceeds $2 billion, cities and towns have been saving too. Total municipal government savings reached $1.18 billion at the start of fiscal 2018, and have risen $560 million since fiscal 2009....

On the expense side of the equation, the report said that while cost data is not complete, it appears that municipal health insurance costs will show an increase of more than 5 percent in fiscal 2017, the highest growth rate since fiscal 2010. Municipal pension appropriations increased by 6.9 percent in fiscal 2018, the fourth straight year that pension appropriations have increased by at least 6 percent....

Local aid, mainly Chapter 70 state education aid and so-called unrestricted aid, totaled $5.4 billion in fiscal 2018, an increase of 1.9 percent over the previous fiscal year, according to the report. A third category of municipal revenues, described in the report as "local receipts," boasted the strongest gains in a decade and now nearly rivals local aid, the report shows, accounting for $5.1 billion in local revenues.

The local receipts category includes motor vehicle excise taxes, service fees and local option taxes on hotel and meals. Vehicle excise revenues totaled $799 million in fiscal 2018, an increase of 5 percent over fiscal 2017....

The share of local expenses covered by local property taxes has shot up from about 52.5 percent in fiscal 2008 to more than 58 percent of all municipal revenues in fiscal 2018, with the share rising in nine of ten years. The report attributes the trend in part to the state's strong real estate market, noting the assessed value of residential properties in Massachusetts grew by 5.7 percent from fiscal 2017 to fiscal 2018.

State House News Service
Monday, March 11, 2019
Property tax override attempts in Mass. at 30-year low


Chip Ford's CLT Commentary

Greetings activists and supporters:

"Vehicle excise revenues totaled $799 million in fiscal 2018, an increase of 5 percent over fiscal 2017."

1980 Ballot Question 2
Proposition 2½


SECTION 9.  Section 1 of Chapter 60A of the General Laws, as most recently amended by Section 87 of Chapter 514 of the Acts of 1978, is hereby further amended by striking out in the first sentence the words "except that no rate fixes hereunder shall be in excess of sixty-six dollars per thousand of valuation" and inserting in place thereof the following: -- except that no rate fixed hereunder shall be in excess of twenty-five dollars per thousand of valuation as determined by the valuation formula in effect in the year nineteen hundred and seventy nine.

Without CLT's Proposition 2½ motorists across the commonwealth collectively would have paid $2.1 Billion last year for the auto excise (tax), instead of $799 million.

Citizens for Limited Taxation saved motorists $1.3 BILLION just last year alone ― on just their auto excise (tax).

As it does every year and has done for four decades as of next year.  That's over $40 BILLION CLT has saved all of us car and truck owners.

Yet CLT struggles to survive, is gasping for air to keep from going under and shutting down, again.

There have been many assaults over the years and decades on our Proposition 2½ ― some subtle, many blatantly direct.  So far CLT has blocked them all.

I've always felt that if Proposition 2½ is ever killed the first slash will be repealing the above Section 9 of our law ― our dramatic reduction of the annual auto excise (tax).

Far too many taxpayers don't even know that CLT's Prop 2½ cut their auto excise (tax) by 62%.

That would be the most subtle part of our law for The Takers to deviously eliminate.  Most taxpayers wouldn't recognize it as a direct assault on Proposition 2½.  There better be someone around to remind those taxpayers, before this tremendous savings is ever axed.

How much did CLT save YOU last year?

Chip Ford
Executive Director


 

Associated Press
Sunday, March 10, 2019

Report: Cities and towns post strong tax growth
A new report says cities and towns in Massachusetts
experienced their strongest revenue gains in a decade


BOSTON (AP) — A new report says cities and towns in Massachusetts experienced their strongest revenue gains in a decade during a recent 12-month period.

The Massachusetts Taxpayer Foundation says the state's 351 cities and towns totaled $28.4 billion in revenues and expenditures in fiscal year 2018, a 4.2 percent increase over the previous fiscal year. It was the highest growth rate since 2008.

The annual municipal finance report notes major differences remain between local communities when it comes to relative economic health.

Property taxes in Massachusetts rose by an average 4.5 percent in the last fiscal year, while the total assessed value of residential properties increased 5.7 percent.

The trend of fewer Proposition 2½ tax overrides also continued in 2018, with only 20 in Massachusetts compared to 26 the previous year.


State House News Service
Monday, March 11, 2019

Property tax override attempts in Mass. at 30-year low
By Michael P. Norton


Property tax override attempts are at a 30-year low, cities and towns have roughly doubled their total savings over the past ten years, and municipalities over the past decade have tripled the amount they could raise under the local tax limit but choose not to, according to new data.

The Massachusetts Taxpayers Association's annual report on the revenues and expenses of the state's 351 cities and towns showed just 20 Proposition 2½ property tax override votes in fiscal 2018, the lowest number since 1990.

According to the foundation, which released its report on Friday, municipalities averaged more than 100 override votes per year between fiscal 2001 and fiscal 2010. Twelve of the 20 overrides taken in fiscal 2018 were approved, raising a total of $8.8 million.

Total municipal revenues and spending rose to $28.4 billion in fiscal 2018, a $1.1 billion or 4.2 percent increase over the prior year and the highest rate of growth since the economic recovery began in fiscal 2010. It's the third time in the last five years that growth has exceeded 4 percent.

While Beacon Hill officials are proudly pointing to a state rainy day reserve fund balance that exceeds $2 billion, cities and towns have been saving too. Total municipal government savings reached $1.18 billion at the start of fiscal 2018, and have risen $560 million since fiscal 2009.

Citing the last year for which data is complete, the foundation reported the number of municipal full-time equivalent employees grew by just over 3,000 in fiscal 2017. The total municipal workforce has decreased by more than 13,000 over the last 15 years, but remains sizeable with nearly 260,000 full-time equivalent positions.

The report also looked at a category known as "excess capacity," or the amount of additional taxes a city or town may collect without seeking to override Proposition 2½, which limits local property tax increases. At $611 million, excess capacity has nearly tripled in the last decade. In fiscal 2018, excess capacity grew by $48 million, or 8.5 percent, the first time since fiscal 2010 that growth has not exceeded 10 percent.

However, the report cites a "wide variance" in excess capacity levels -- more than 150 communities have excess capacities of 0.5 percent or less of their total tax levy, while excess capacity in 82 cities and towns is less than .005 percent of the local tax levy.

On the expense side of the equation, the report said that while cost data is not complete, it appears that municipal health insurance costs will show an increase of more than 5 percent in fiscal 2017, the highest growth rate since fiscal 2010. Municipal pension appropriations increased by 6.9 percent in fiscal 2018, the fourth straight year that pension appropriations have increased by at least 6 percent.

The report also again highlights a long-term trend: growing reliance locally on property taxes, easily the largest source of municipal revenues.

Over the 20-year period from fiscal 1999 to fiscal 2018, local aid to cities and towns has shrunk from 28 percent of municipal revenues to 19 percent, "the result of relatively strong property tax growth as well as the local aid cuts that took place in each of the last two fiscal downturns," the report said.

Local aid, mainly Chapter 70 state education aid and so-called unrestricted aid, totaled $5.4 billion in fiscal 2018, an increase of 1.9 percent over the previous fiscal year, according to the report. A third category of municipal revenues, described in the report as "local receipts," boasted the strongest gains in a decade and now nearly rivals local aid, the report shows, accounting for $5.1 billion in local revenues.

The local receipts category includes motor vehicle excise taxes, service fees and local option taxes on hotel and meals. Vehicle excise revenues totaled $799 million in fiscal 2018, an increase of 5 percent over fiscal 2017. Currently, 167 municipalities levy a meals and hotels tax, 87 levy at least one local option tax, and 97 communities do not levy either local option tax, the report said.

The share of local expenses covered by local property taxes has shot up from about 52.5 percent in fiscal 2008 to more than 58 percent of all municipal revenues in fiscal 2018, with the share rising in nine of ten years. The report attributes the trend in part to the state's strong real estate market, noting the assessed value of residential properties in Massachusetts grew by 5.7 percent from fiscal 2017 to fiscal 2018.

 

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    (781) 639-9709

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