The question, or should we say report, that needs to be asked is how many commercial parcels valued under $2,000,000 have been removed from the tax rolls over the past 5 years.
Here is common occurrence in the City of Worcester:
- Commercial building being sold in the 500,000 range
- Annual taxes are about 15,000/year
- A religious institution can buy it and not have to pay any taxes which puts them as a huge competitive advantage
- They could literally outbid a potential commercial buyer 1050,000 and have a lower monthly payment not having to include a monthly tax payment of $1,250
- The big loser being the City of Worcester who loses 15,000 per year on this property each year
Dropping our rate by $1 does not sway someone to come to Worcester but the lower rates make it more equitable when a commercial prospect is competing with a non-profit. Right now the current tax structure make it very conducive to sales to non-profits and there goes the commercial base..
