Blue Mass Group

Reality-based commentary on politics.

Closing Telecom Loopholes

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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.

 

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  1. 2. If a town’s health insurance costs are under the GIC benchmark, no change in health insurance is required for that municipality;

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    p>With that in place, it’s a good idea.

  2. 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.  

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    p>Maybe the next plan can give the governor’s next pick the power to decide property tax averages.

    • 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.

      • 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!”

  3. 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)?

  4. Why not just, “the cost”, as in

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    p>

    Secretary for Administration and Finance formulates an average cost GIC “benchmark” will ask the GIC to quote on the cost for cities and towns to join the GIC;

     

  5. $26 million for the poles… we’re looking at a little more than $4/person.

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    p>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.

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    p>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.

  6. Municipalities should have the same management rights as the state.  

    4. If no agreement is reached, an arbiter has 60 days to issue a judgment by which unions are required to comply;

     This is simply adding another layer of bureaucratic BS and designed to punish one party or the other.  

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    p>

    5. Town management can reject the judgment on a two-thirds vote but be penalized their local aid amount that would have been saved by joining GIC.

     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.

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    p>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.  

  7. Which is probably fine.

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    p>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.

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    p>If we want to take more money from the citizenry, let’s do it openly and progressively.

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