Taxes and Fees

Back to the Revenue Task Force report.

The report does a nice job of answering a relatively simple question: What are the sources of city tax dollars, and how do they compare to so-called comparable towns (Ashland, Bedford, Holliston, Ipswich, Lynnfield, Melrose, Newburyport, North Reading, Swampscott and Wakefield.)

These are all FY06 figures.

According to the report, on average, property taxes account for 75% of General Fund revenues for those comparable communities. Newburyport tax payers shoulder a higher burden with 80%.

On a per capital basis, Newburyport taxes are higher than average, roughly $2,060 vs. $2,024. I can’t figure out how to publish a chart here so go to page 23 on the report. The $36 difference means we pay approximately $627,000 more in taxes than folks in the comparable communities.

However, before you go screaming, aha!

Newburyport collected $24 fewer dollars per capita in licenses, permits & fees AND $27 less per capita on charges for services. This amounted to $960,000 fewer dollars into the city’s coffers in 2006. (One caveat, I don't know how user fees at schools play into this.)

So are we overtaxed for our properties or undercharged for our services? I've maintained that it's the latter, particularly when it comes to parking, and the data seems to back that up.

It will be interesting to see if the mayor and city council have the desire and political will to address any fee inequities. After all, the city could use the $300,000 that's apparently going uncollected.

Raising fees isn't a decision made by a ballot box so this can't be passed onto voters, at least not directly. The final word comes from banging of a gavel or the signing of some document at the corner office of City Hall.

Those same voters, however, might have a thing or two to say the next election cycle.

To be fair, I'm sure some will point out that the current breakdown is fair. Fees are considered a regressive tax as higher and lower income folks pay the same amount. It can be argued that the folks with a nicer home can afford to pay more for an equal share of city services.

But if we lean too heavily on property taxes people who are house rich but cash poor may get squeezed from their homes. Plus, is that fair?

More coming from the report.

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