NEW: Providence Council Approves Revenue Study Commission

NEW: Providence Council Approves Revenue Study Commission

A resolution to create a “Commission to Study Revenue Sustainability and Efficiency” that will be used to deal with the tax burden on Providence homeowners and businesses was passed by the City Council at its March 17 meeting. Two days prior to the passage, Internal Auditor Matthew Clarkin and Gary Sasse, fiscal advisor to the City Council, had presented their recommendations to create the commission.

Council President Michael A. Solomon will appoint five members to the commission, while the mayor will appoint three, as well as the director of administration or his designee. According to the resolution, members will determine the “equity, competitiveness, sustainability, and efficiency of the current tax and revenue structure.”  Based on their findings, they will provide recommendations for increasing long-term investment and enlarging the Providence tax base.

Comparison of Revenue Structures

To address the competitiveness of Providence’s revenue structure, the resolution compels all commission members to “assess the implications of the current revenue structure and compare to any and all municipal structures applicable, but namely neighboring cities of similar size to ensure competitiveness.”

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In the face of such tough economic conditions, Solomon was hopeful about the implications of this commission for the city’s future stating that “The creation of this commission is a critical step towards addressing Providence’s tax burden and understanding how we can encourage growth and economic investment through our tax structure.”

Long-term Investments and Property Tax

Majority Leader Seth Yurdin emphasized the importance of attracting long-term investment to sustain critical government services. “The committee is charged with making recommendations on how to make the tax system more balanced, to expand our tax-base and to encourage long-term growth of the city" said Yurdin in a statement.

Additionally, Finance Chairman John J. Igliozzi explained how the commission would confront the “inequities and inefficiencies in our revenue structure that create an over-reliance on property taxes.”

An announcement of Commission appointments is expected in the coming weeks, as well as a schedule for public meetings. The resolution requires the commission to issue its findings in an official report to the City Council by July 1, 2011.