Boston Herald

PROPER DISGRACE FOR BAY STATE

Mass. worst in property taxes; Connecticu­t, Vermont, New York, New Hampshire also on list

- By Matthew Medsger mmedsger@bostonhera­ld.com

A report published by a Washington D.C. tax thinktank shows Massachuse­tts continues to rank the fifth worst for property taxes, a position it has held for three of the last four years and that analysts say may get worse even amid record tax revenues.

“Massachuse­tts property owners pay among the highest property taxes in the entire country,” Paul Craney, a spokespers­on for the Massachuse­tts Fiscal Alliance said in a release following the report.

“(The) report comes after April’s state tax collection­s numbers show that Massachuse­tts collected nearly 80% more in taxes this April than last April,” he said.

April’s state tax revenue, published by the Department of Revenue last week, was $2 billion more than forecast.

Of the New England states only Maine and Rhode Island have better property tax rates. Connecticu­t’s is the worst in the nation, followed by Vermont, New York and New Hampshire.

The Tax Foundation, the tax policy nonprofit which publishes the annual property tax report, says that across the country, property taxes accounted for over a third of businesses’ tax burdens.

According to the Foundation, “in fiscal year 2020, taxes on real, personal, and utility property accounted for almost 38 percent of all taxes paid by businesses to state and local government­s.”

That’s an ongoing problem in the Bay State that may soon be compounded, according to Craney.

In November, voters will decide the Fair Share Amendment, a rule which would add a 4% tax on incomes over $1 million to the state constituti­on.

“If their 80% tax hike passes, many affluent and small businesses will flee out of state, leaving the middle class to make up for the loss of tax collection­s, including property taxes,” Craney said.

Craney, and the nonpartisa­n Massachuse­tts Taxpayers Foundation, have both told the Herald the proposal would negatively impact not just businesses — but regular working class taxpayers.

According to Eileen McAnneny, MTF president, the tax would affect many so-called ‘one-time millionair­es’ — people who sell a home or business — and those residents will almost certainly find another place to retire before selling their nest eggs.

The Tax Foundation’s report comes as both the state House and Senate chose to move forward on nearly $50 billion in spending for fiscal 2023 without any tax relief policies included in their budgets.

Gov. Charlie Baker proposed in January spending $1.5 billion less and offered nearly $700 in tax relief for residents. That plan, which would affect renters, seniors, and low income earners, and lower the estate and property tax, has since been stuck in legislativ­e committee.

 ?? MATT STONE / HERALD STAFF ?? SKY HIGH: Gov. Charlie Baker speaks about taxes at the State House earlier this year
MATT STONE / HERALD STAFF SKY HIGH: Gov. Charlie Baker speaks about taxes at the State House earlier this year

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