Meetings about taxes prove… taxing
©2005 Roy Bercaw
The City [of Cambridge] responded to citizens’ concerns about the “property tax bomb” by holding some more meetings. Mayor Sullivan called the first one to order on Thursday September 22, 2005.
All nine members of Cambridge’s state legislative delegation were invited. But the Legislature was in session so most were represented by aides. Barrios, Waltz, and Rushing were not represented at all. Councilor Toomey was at the statehouse in his capacity as State Rep. Councilor Davis left early for another meeting. Councilor Reeves didn’t come at all. Almost all the talk came from the public.
Elie Yarden from Green-Rainbow spoke first. He said the problem is policy. Allowing expansion of the universities on land otherwise usable for housing was bad policy. Imposing taxes based on market assessment makes Cambridge vulnerable (dependent) on tax income.
Any policy that does not protect long-term residents is bad policy. The right of domicile is a basic right. Arguments going on in the US Congress are the same as the ones going on here. Every time one says we can cut spending by avoiding wasteful spending, the response is “Well, we'll cut necessary programs.” Civic government that can protect citizens from market forces is the only kind of government worth having.
Kathy Podgers said that 500 disability activists had just occupied Congressional offices in Washington and 34 were arrested. The local media did not report this.
Persons living on fixed incomes are forced out of their homes when taxes are increased. Elected officials understand this but seldom take any effective action. “What have you done to address this disparate treatment of persons with disabilities? Over the last four years we've been allowed to slip through the cracks. There are large mountains on the carpets from where these problems were swept under the rugs.”
Mark Snyder said he lives in a small condo. He spoke about a proposal that would reallocate the residential exception. His taxes have gone up about 20 percent each year. According to the chart, condo taxes would go up 45 percent. "I have no idea where this came from, or why they want to do this. It makes no sense to me, and it is regressive."
Mello Waters said "I went from paying $1426 per payment to $2900 in one shot with a few weeks notice. I found properties like mine that had no increase or that went down. I couldn't understand what that was about. I'm a teacher. I worked in the real estate market for a few years. …We have to limit how much your taxes will go up.… I'd like to see some of the short-term redress the councilors spoke about, so that we're not chasing people out. We lost people due to repeal of rent control.”
Stash Horowitz said that Cambridge’s annual budget is $401 million. That's a large budget for a city of 100,000. There is a feeling among residents that “something happened” in the last few budget cycles. Part of it has to do with commercial vacancies.
When a commercial property is vacant, taxes are not paid. But when a residential property is vacant the owner must still pay taxes. This shifts the burden to the residential property owner. Maybe we need to change the way the law is written so that empty commercial property is taxable. The City’s residential property valuation increased from $10 billion to about $13.8 billion in two years. The commercial valuation increased from $6.6 billion to $7 billion.
I spoke next. I reminded the elected officials about the bill I wrote (H3636) in 2001, to end the property tax exemption for any non-profit with more than $500,000 in assets and or an endowment. I said if you believe The New York Times and the Boston Globe, Bush is to blame for everything. If that is true he deserves credit for the Triple A bond rating also.
I suggested a sales tax, and an income tax and also charging for air. I mentioned items in the budget that may be a waste of taxpayer funds.
The underground parking garage for the new library encourages people to use their cars. Neither Boston nor New York provides parking for library patrons. Why does Cambridge need to do that and encourage people to drive? In addition the City destroys trees for parking.
The City spends about $2 million to improve Porter Square. Much is cosmetic. I think that's a waste of taxpayer funds.
The City spent a few million refurbishing 57 Inman /344 Broadway. But the City did not make it cable ready for live broadcast of city meetings. This outrage is due to the City’s failure to enforce an agreement with MediaOne and now Comcast.
The City Spent $20,000 on new high-tech wireless microphones so that the public could hear Planning Board meetings. Yet the Planning Board is unable to use the microphones and cannot be heard still.
Council candidate Jesse Gordon looked up the state laws. The issue is not the tax rate nor the total tax amount, but the distribution of taxes. This seems to work against the goal of maintaining residential rental properties. The question people have most often is why their property was taxed at the full rate rather than market value. He suggested that the City inquire of neighboring cities how they tax their properties.
On Monday, September 26, 2005, the regular City Council meeting included a second hearing on the property. Public comment solely on the tax rate was permitted during the hearing in addition to the regular public comment period.
Mike Devin said that there is a problem because few studio and one-bedroom apartments are owner-occupied.
Marilyn Wellons said that there is no consideration for elderly and disabled residents, who are being driven out of the city. She noted that there is no Cost–of-Living Adjustment under state tax laws. The emphasis on the Triple A bond rating is driving people out of the city. She said that the City Council could have provided relief.
John Moot said that issuing bonds for the recently approved West Cambridge Youth Center would cost the taxpayers about 50 percent more than if it were paid for in cash. He said bonding was a phony method in an election year.
City Manager Healy praised the wisdom of City Council financing major projects with bonds. He boasted that commercial properties pay about 63 percent of the tax revenues.
Councilor Murphy said property taxes are a national issue. He added that Cambridge is remarkable. He added that the six-page glossy published by the City Manager is a remarkable introduction to how taxes work. He made a remarkable assertion that "the essence of what it means to be a Cantabridgian, is to care about fellow residents; not to say me first, the other guy second. Murphy boasted that Cambridge has the lowest tax rate of all 351 cities and towns in Massachusetts. He said it was a remarkable achievement not to have a higher tax rate.
Councilor Maher said he had been very critical of the higher taxes when the assessment first came out. But he is pleased today. He thanked the Assessor's office for great customer service.
Councilor Decker said, "It should not have happened the way it happened. It was a perfect storm…. We shouldn't throw out the baby with the bath water….We're a progressive city.” She grew up in Cambridge and is dedicated to the people in Cambridge. She said that she wants to give back to the city by working at low paying jobs, like being a City Councilor.
Of the property tax, she said, "It is complicated stuff. When your neighbor sells his house and makes a lot of money your taxes go up…. this is where the rubber meets the road…. It’s not an easy issue….The Republicans like to do funny math. It's complicated."
Councilor Davis said, "We're responsible for spending their money when we tax them. We're talking about trust when it comes to taxes…. Fairness is one of our goals. Predictability is difficult in an unpredictable world, especially for the elderly, the disabled and the impoverished….”
More meetings are scheduled. But the thrill is gone, the City Council just voted to cut the tax rate. Nothing to do with next month’s election, mind you. Once again, the City Manager fishes $10 million out of his rainy day magic hat. —You haven’t seen this act before? Jesse Gordon hasn’t; he thinks they did all this just for him.
©2005 Roy Bercaw