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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”
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their Institutional Memory — |
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CLT UPDATE
Monday, March 11, 2019
CLT
saved motorists $1.3 Billion ― just
last year
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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
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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?
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Chip Ford
Executive Director |
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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.
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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
▪ (781) 639-9709
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