SENATE CLAIMS NEW POLES AND WIRES TAX ON TELECOM WILL GENERATE $26 MIL.
While the Lege is beating up on Governor Patrick, they did manage to take a long overdue step to act on one of his early proposals. Thank you.
SENATE CLAIMS NEW POLES AND WIRES TAX ON TELECOM WILL GENERATE $26 MIL
One tax increase that cleared the Senate Tuesday night but which received little attention as it was overshadowed by larger increases and buried in a bigger amendment would eliminate a property tax exemption on poles and wires located on public property and rights of way. The telecommunications industry has long resisted the lifting of the exemption. A summary of the “municipal relief” amendment provided by Senate President Therese Murray’s office estimates that change will generate $26 million in new municipal tax revenue. The Senate tax package approved Tuesday would also impose a $26 million tax by extending the sales tax to satellite subscription services, which would “achieve parity between cable companies and satellite providers,” according to a Senate summary of the legislation, which must be reconciled in talks with the House.
Discuss
18 Comments . Comments are closed.This answers my only qualm about GIC
With that in place, it's a good idea.
Ah
If I understand the plan correctly, this what happens: The governor picks a faceless bureaucrat to decide benefits statewide. Said mandarin arbitrarily decides a cutoff...er, "formulates a benchmark average"...and all municipalities are forced to budget under it. That way, we can safely remove this power from persons elected by workers and citizens, and locate it with the executive branch where it belongs.
Maybe the next plan can give the governor's next pick the power to decide property tax averages.
I would prefer carrots and sticks
I agree towns should be able to keep locally-determined systems if they want. They just should lose some percentage of their local aid if they aren't at/below the GIC level. The state shouldn't be subsidizing their excessive benefits.
A little like ...
Isn't that dangerously close to the sentiment that if someone is on welfare, then there should be limits on the kind of car they can drive, or even prevent them from getting their nails done -- after all "the state shouldn't be paying for that woman's fancy nails!"
Sab - there'd have to be data to supprot the benchmark; but I agree, the potential for abuse is there...
Heh
Progressives are tripping over themselves to give the Mass. executive branch power...let's see how smart that looks when there's a governor in there they don't like.
I wouldn't want Romney telling me how much I should pay into health care.
Sab - he kinda DID...
Tel pole question
Is the new property tax revenue for cities and towns above or below 2.5? In other words, will this result in more revenue, or the same amount of revenue now paid by more parties (thereby lowing the property tax oh so slightly for current tax payers)?
I think ...
but am not sure ... that this will add property to the tax rolls that is currently exempt. So it should mean more revenue. Right?
Most likely
the telecoms will be considered "new growth", and therefore the tax levy will be increased by that (and other growth) plus 2 & 1/2 % of prior levy.
My town just lowered its tax rate - I want newer, prettier poles...maybe cedar...Pergo...
Maybe they could just bury the dang things
and you'd have improved service during storms and a prettier neighborhood...
Why a $quot;benchmark$quot;
Why not just, "the cost", as in
That makes sense
although using the average may be a quick and inexpensive process.
Joe - I'd rather Median. God knows what Boston's health plan costs.
So, 6 million people in MA
$26 million for the poles... we're looking at a little more than $4/person.
Of course, it's not quite so simple. Boston will get far less because of density and underground wiring. Rural areas have very low property values. Low density sprawl may well get the most.
A very rough estimate on how much your town will get: population times $4. Of course, that's not one time -- that's every year. The timing is quite good for my community; we're short a few million on our budget and these few hundred thou will help a bit.
Double standard
Municipalities should have the same management rights as the state.
This is simply adding another layer of bureaucratic BS and designed to punish one party or the other.
This is simply another whack at local government. It would likely be moot if local government were able to operate with the same standard as state government.
Local government/municipalities should have the same management rights and privileges as the state. The state is not constantly in health insurance negotiations with unions and employees (bless their lucky hearts). It offers the GIC (period). The double standard is what needs to change.
Pole tax is another end-run around Prop 2-1/2
Which is probably fine.
It's not like the $26 million is going to come out of the telecoms' pockets. They are going to pass it along to customers. So, it's another dollar out of the pocket of residents into the public fisc.
If we want to take more money from the citizenry, let's do it openly and progressively.
« Blue Mass Group Front Page
Sat 4 Feb 6:11 AM