The Brockton City Council has voted to cut more than one million dollars in taxes, rather than add funds to the city’s stabilization fund. The move comes less than a week before city is scheduled to set the tax rate for 2013. Council President Tom Brophy says the city’s Chief Financial Officer John Condon informed the city council that action had to be taken on some leftover funding.
“There were two appropriations, one for $914,000 and another for $500,000 that were unappropriated Fiscal Year 2013 receipts,” said Brophy.
The state’s Department of Revenue determined that there were overestimates, including an increase in taxes for personal property. According to Brophy, the city council usually has final say on what happens to that money.
“Before we set the tax rate, we either have to spend the money or place it in the stabilization account or the money is not levied against the taxpayers,” said Brophy.
The council decided that it would not levy the million dollars against the city’s tax payers. So can the city ever recoup that money or is the tax cut permanent? Brophy says it means there will be a decrease in the amount that the city can legally raise on property taxes or Proposition 2 ½. The million dollars is a permanent tax cut that will not be levied against the tax payers. Also, the city cannot go back and attempt to recoup those funds.
The City Council will hold their annual tax classification hearing at City Hall on Monday, December 3rd at 7pm.
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