SPRINGFIELD, Mass., November 30, 2022 – The Springfield Regional Chamber (SRC) announces its support of Springfield Mayor Domenic J. Sarno’s recommendation on the City’s fiscal year 2023 property tax rate. SRC President, Diana Szynal, released the following statement outlining the recommendation and its implications:
“The Springfield Regional Chamber supports Mayor Sarno’s recommendation for the City’s fiscal year 2023 property tax rate which would reduce the commercial, industrial, and personal property (CIP) tax rate to $36.40 (a reduction of $2.64 per thousand.) This reduction will provide some relief to our hardest hit business sectors like our retailers and our hotels, especially those which saw their property values decrease as a result of dip in commercial property values due to the pandemic. We understand the Mayor’s need to provide tax relief to the City’s residents during these economically difficult times despite their rising property values, but we appreciate the fact that the Mayor recognizes the challenges which continue to face our business community as well. Through his extra investment of $10 million to offset tax rates city wide, the Mayor has found a way to balance the needs of both residents and businesses.
But there is still reason for concern. While the Mayor’s recommendation does reduce the tax rates, it also shifts the tax burden further on the commercial side than last year, from a factor of 1.6444 to 1.6921. This increasing shift is extremely concerning and is something that the Chamber will continue to monitor and fight to keep in a healthy balance in future fiscal years.
It is important to note that of the $6.6 million dollars in new growth in the city last year, 60% of that was commercial property. The Springfield Regional Chamber believes that now is not the time for the City of Springfield to put more burden onto the businesses that provide jobs, goods, and services to its residents. Further shift of the tax burden onto businesses would be irresponsible and short-sighted. However, we can also appreciate the challenges the good people of Springfield face as we all continue to recover from the economic ravages of the COVID-19 pandemic.”
To learn more about The Springfield Regional Chamber, and to stay up to date on local issues and economic development, visit www.springfieldregionalchamber.com.