NEW: Chafee Announces New Central Falls Economic Expansion Initiatives and Increased Tax Exemptions
Wednesday, January 11, 2012
Governor Lincoln D. Chafee announced today that, after stabilizing Central Falls' finances, the Office of the Receiver is now pursuing ways to expand the city's tax base while also offering tax relief for the state's poorest citizens. In order to grow its economy, Central Falls is unveiling an Economic Expansion Incentive Program designed to encourage significant capital investments and improvements to the city's building stock and spur the creation of new jobs within city limits. At the same time, state-appointed Receiver Robert G. Flanders, Jr. also proposes approximately 25% increases to a series of property tax exemptions aimed at homeowners, senior citizens, and veterans.
The Economic Expansion Incentive Program encourages the construction of new facilities, renovation of existing facilities, and reoccupation of facilities vacant for periods of one or more years by providing attractive tax incentives for businesses locating or expanding in Central Falls.
“Central Falls has finally gotten its fiscal house in order and is poised to emerge from bankruptcy stronger than before. Now, the key is bringing job creation and economic growth to the city. With jobs, the renewal of Central Falls will continue and all of its challenges will be more easily resolved. This is the next step in our efforts to bring prosperity back to the City of Central Falls,” Governor Chafee said.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“Now that the fiscal hemorrhaging has stopped, it's time to let businesses know that we're serious about helping them grow. Central Falls has become nimble, innovative, and here to create jobs,” Receiver Flanders said.
Designed to secure the long-term growth of the city’s tax base, the proposed program offers incentives for large-scale investments, the hiring of residents of the City of Central Falls, and providing health insurance benefits. This phased-in tax relief consists of two separate incentive approaches: a Jobs Creation Incentive Plan and a Real Property Improvement Incentive Plan.
The Jobs Creation Incentive Plan would encourage new, quality jobs by reducing tangible personal property taxes for employers who create such jobs within Central Falls. The Jobs Creation Incentive Plan offers a phased-in tangible personal property exemption over a 5-year period based upon the increase in assessed value attributable to new tangible personal property. The City would provide additional exemptions to employers who furnish group medical insurance plans, employers who have expanded their workforce with at least 20% of new jobs going to Central Falls residents, and to employers for whom at least one-fifth of new employees earn $38,480 annually. This would result in a 50-85% exemption on the increased assessed value of tangible personal property for the first year, and significant relief for the next four years for qualifying employers.
The proposed Real Property Improvement Incentive Plan encourages new construction, substantial renovation of existing structures, and reoccupation of vacant or abandoned facilities by reducing real property taxes for property owners who make significant financial investments in improvements to property in the City of Central Falls. The Real Property Improvement Incentive Plan offers phased-in tax exemptions over a five year period based upon the increased assessed value attributable to the new improvements. Qualifying property owners investing a minimum of $50,000 in building permits would receive a 75% exemption on the increased assessed value attributable to the new construction for the first year and enjoy significant tax relief for the next four years. The City would provide further tax exemptions for investing in vacant, abandoned or historic properties as well as large-scale investments.
To encourage owner-occupancy and provide tax relief to some of its neediest residents, the Office of the Receiver also proposes approximately 25% increases to existing real property tax exemptions: increasing the annual Homestead exemption from $646.86 to $800.00, increasing the exemptions to senior citizens, veterans, widows of veterans and gold star citizens from $80.86 to $100.00 and to prisoners of war from $242.57 to $300.00. The increased exemptions, if passed, would be in effect for the 2012 property bills.
Additionally, in order to encourage smaller-scale home repair and maintenance, the program proposes a 25% increase in the threshold under which residential improvements are not reassessed. Such an increase would raise the current $20,000 threshold to $25,000, under a new Small-Scale Residential Improvement Program, giving extra incentive for smaller scale home improvements on residential property.
The ordinances for these proposed programs and exemption increases will be introduced at the State Receiver’s Hearing Officer’s Meeting at Central Falls City Council Chambers on January 11 at 6:00 p.m. According to Receiver Flanders, “After all the shared sacrifices, it's time to provide a little relief.”
