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INVESTIGATION: Port Business Receives Tax Bill 100 Times Larger Than Last Year’s

Monday, July 13, 2015

Russ Moore, GoLocalProv Contributor

After a reassessment of the "tangible" property located at the Providence Port last year, at least two businesses were sent jaw dropping tax increases this year.

In one instance, Sprague Operating Resources, received a tax bill for tangible property from the city that forces the company to pay $273,280.52. The year prior, the company received a tax bill that cost the company just $2,594.72. That means the company's tax bill this year is more than 100 times than the one it received last year.

Sprague Operating Resources

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In another case, Sims Metal Management, located on 242 Allens Avenue, received a tangible tax bill for $400,504.52 this year. Last year, the company received a tax bill for $43,048.84. That's roughly 10 times higher than its bill from last year.

Sims Metal Management

Tangible property refers to any property that a company owns and uses that can be perceived by the senses and isn't land or buildings. Companies pay a rate of 55.80 dollars per thousand dollars of tangible property they possess. The first $1,000 of value is exempted.

Puzzling Situation

The puzzling situation raises questions as to whether the companies in question are being hit with unfair tax hikes this year, or if the businesses have been skating by with much smaller tax bills than they deserved in previous years, depriving the city of much-needed revenue in the process.

The answer to the question varies depending on which side you ask.

Christopher Hunter, a spokesman from the Working Waterfront Alliance, which represents both companies in question, called tax hikes "massive", "unjustified", "unfair", and "enormous".

"These out of the blue tax increases are highly troubling. They will make port area businesses less competitive, threaten jobs, and hurt prospects for recruiting new businesses to the area," said Hunter in a statement to GoLocalProv. "Member businesses will be contesting these enormous and unfair tax increases."

Highly Troubling

The city, however, doesn't see the situation in the same light.

In a brief statement, Evan England, Mayor Jorge Elorza's spokesman, said that the assessor's office ordered an inspection of the waterfront port property last year, and found justification for the significant increases of tax assessments for certain businesses.

"...The tax assessor’s office ordered a physical inspection of all properties along the port resulting in a more accurate representation of actual tangible property. Property owners were sent notification letters ahead of the inspection," said England.

The letter referenced by England did not expressly say that the assessment that would take place would be done for the purposes of gaining extra revenue for the city by increasing tangible assessments on port businesses. In fact, it did not call what was taking place an "assessment" at all.

A Fruitful Review (For The City)

Instead, it referred to the process as a "review" and that it was "for purposes of assisting city in responding to increased levels of inquiries it has been receiving regarding possible uses at the port."

The letter continues, "to this end, the city needs to know extent of existing inventory of infrastructure serving Port such as locations of rail lines, any limitations on their use, freight loading/unloading facilities by type, size and limitation, warehousing facilities, storage facilities (both under roof and in open), tank types, size, product specialties and location, piping/plumbing capacity...and any other details relevant to future use at the Port."

City Tax Assessor David Quinn and local real estate appraiser Peter Scotti, according to the letter, performed the appraisals at the Port. Scotti didn't return a call requesting information on the issue.

On the other hand, both Sims Metal Management and Sprague Operating Resources, through a request to their spokesman, declined to make public the Annual Return document that companies are required to file with the city tax assessor's office. The Annual Return forms require businesses to report to the city the amount of tangible property that they have on their premises. (Once the forms are filled out, they cease to be a public record.)

Fair Share?

City Council President Luis Aponte, who represents the areas in which Sprague Operating Resources and Sims Metal Management are located, sides with the city on the issue.

"This was a study by the city to better reflect the values in the industries along the port," said Aponte.

"From what I understand, this is an attempt to capture all of the revenue that is owed to the city. It's about making sure everybody pays their fair share. Now we have a better sense of what the values are at those properties and what those businesses should be paying."

Aponte admits that he's been a critic of the development at the port, which has been focused on scrap metal businesses. Aponte would prefer to see mixed use zoning enacted, which he believes would make the port more attractive.

Related Slideshow: Top 50 Business Delinquent Taxpayers

Below are the top 50 delinquent business taxpayers in the state, ordered from least to greatest. Data was obtained directly from the state Division of Taxation and is based on an official statutorily mandated list of tax delinquents that must be published. Applicable taxes include sales, meals, beverage, withholding, corporate, and health care taxes. Total amounts are current as of this past January. Delinquent payers who have made payments since January have been removed from the list. This listing of businesses is current as of June 28. For each business the official business address is listed, which may in some instances be different than the public business location. When available, more information is provided about the business or circumstances potentially relevant to its delinquency.

50.

Business Name: Gina R. Durante DBA New 2-U Consignment Store

Business Address: PO Box 8833 Cranston RI 02920

Amount Owed: $75,146

49.

Business Name: Gary Branch DBA Branch Woodworking

Business Address: 500 Wood St. Bristol RI 02809

Amount Owed: $76,731

48.

Business Name: American Window Enterprises Inc.

Business Address: 20 School Street Rehoboth MA 02769

Amount Owed: $77,849

47.

Business Name: Jamestown Tavern LLC

Business Address: 580 Weetanoe Street Fall River MA 02720

Description: The tavern, which was located in Jamestown, was reportedly closed in 2013 after its liquor license was pulled.

Amount Owed: $78,301

46.

Business Name: Newgrange International Inc.

Business Address: 600 Putnam Pike Greenville RI 02828

Amount Owed: $80,283

45.

Business Name: Bird Incorporated

Business Address: 750 East Swedesford Road Valley Forge PA 19482

Description: Bird Incorported was founded in the mid-1790s, when George Washington was in his second term. Today it is best known as a manufacturer of roofing shingles and vinyl siding.

Amount Owed: $81,742

44.

Business Name: AA Thrifty Services Inc.

Business Address: 17 Paolino Circle Scituate RI 02857

Description: A sign and awning design and fabrication company. Its business registration with the state was revoked in 2011.

Amount Owed: $83,944

43.

Business Name: Applebee's International Inc.

Business Address: 450 N. Brand Blvd 7th Floor Glendale CA 91203

Description: With more than 2,000 locations worldwide and $4.5 billion in sales in the United States alone, Applebee's is among one of America's most popular restaurant chains.

Amount Owed: $85,625

42.

Business Name: CDE Corporation

Business Address: 15 Greenhill Rd. Johnston RI 02919

Description: A local demolition and debris removal contractor.

Amount Owed: $85,813

41.

Business Name: SCI Funeral & Cemetery Purchasing

Business Address: 1929 Allen Parkway Houston TX 77019

Description: A Fortune 500 company that had $2.9 billion in revenues last year, SCI describes itself as the "largest provider of funeral and cemetery services" with 4,500 locations in 20 countries, according to its Web site.

Amount Owed: $88,014

40.

Business Name: Wayne Prolux DBA East Bay Flooring

Business Address: 628 Metacom Ave. Warren RI 02885

Amount Owed: $92,125

39.

Business Name: Robert Cucino Jr.

Business Address: 14 Sallsbury Rd. Foster RI 02825

Description: Robert Cucino, Jr. is the president of the Cucino Corp., a heavy truck hauler based in Johnston.

Amount Owed: $95,495

38.

Business Name: Floortech Industries LLC

Business Address: 2 Navaho Dr. Canton MA 02021

Amount Owed: $97,989

37.

Business Name: Affordable Lanscape Concepts Corp.

Business Address: 296 Simmonsville Ave. Johnston RI 02919

Amount Owed: $98,517

36.

Business Name: Off Track Bedding Ltd.

Business Address: 209 Cambridge Lane Nicholasville KY 40356

Amount Owed: $104,643

35.

Business Name: Pytko Construction Corp.

Business Address: 654 Eddie Dowling Highway North Smithfield RI 02896

Description: Owner Paul Pytco last year pled guilty to conspiring to sell company equipment and conceal the sales from the IRS in order to pay off more than $1 million in alread-accumulated back taxes, according to an FBI news release.

Amount Owed: $107,144

34.

Business Name: Highway Construction Serv Inc.

Business Address: PO Box 40369 Providence RI 02940

Amount Owed: $107,404

33.

Business Name: America House Comm Ltd.

Business Address: 28 Jacome Way Middletown RI 02842

Description: A yacht design firm with more than $1 million in sales a year.

Amount Owed: $111,026

32.

Business Name: Contemporary Telephone Group Inc.

Business Address: 72 Reservoir Avenue Providence RI 20907

Description: A 30-year local business that provides voice mail and other telephone services, according to its Web site.

Amount Owed: $112,632

31.

Business Name: Symmetry International Inc.

Business Address: 55 Industrial Circle Lincoln RI 02865

Description: A local manufacturing firm of exhibits, sculptures, and other products ranging from a 28-foot tall Optimus Prime statue to set pieces for the movie Zookeeper.

Amount Owed: $112,930

30.

Business Name: Stephanie Masoian DBA Delicacies

Business Address: 108 Whitewood Dr. Cranston RI 02920

Amount Owed: $114,565

29.

Business Name: EZ Mart LLC DBA Diamond Hill Market

Business Address: 1166 Washington St. Weymouth MA 02189

Amount Owed: $118,318

28.

Business Name: CSCS Inc., FKA Strategic Supply Chain Inc.

Business Address: 59 Greenhill Street West Warwick RI 02893

Description: A national supply chain services company with headquarters in Grand Rapids, Michigan.

Amount Owed: $118,366

27.

Business Name: JH Prestige Granite Countertops Inc.

Business Address: 940 Wellington Ave. Cranston RI 02910

Amount Owed: $118,597

26.

Business Name: Freedom Funding Group Inc.

Business Address: 591 Main St. East Greenwich RI 02818

Amount Owed: $132,588

25.

Business Name: Athens 2005 Inc.

Business Address: 828 Lake Avenue N. Apt. #6 Delray Beach Fl 33483

Amount Owed: $133,530

24.

Business Name: Conversent Communications LLC

Business Address: 5 Wall St. Burlington VT 01803

Amount Owed: $134,405

23.

Business Name: Bradford Printing & Finishing LLC

Business Address: 2540 Claire Marsh Rd. Seabrook Island SC 29455

Description: A local military uniform manufacturer located in the Westerly area. It reportedly went out of business in 2011. (It's business address is where its former executive vice president lived.)

Amount Owed: $142,000

22.

Business Name: Adla LLC

Business Address: PO Box 40369 Providence RI 02940

Amount Owed: $144,536

21.

Business Name: Precision Granite Works Inc.

Business Address: 14 Audrey Street Warwick RI 02886

Amount Owed: $152,012

20.

Business Name: Greystone Equipment LLC

Business Address: 154 Sylvan Drive East Greenwich RI 02818

Amount Owed: $162,176

19.

Business Name: Alves Productions Inc.

Business Address: 327 Barton St Pawtucket RI 02860

Description: A local liquor store.

Amount Owed: $164,880

18.

Business Name: Amore Inc.

Business Address: 27 Porter Pond Road Moosup CT 06354

Amount Owed: $167,103

17.

Business Name: DBC Occupations Unlimited Inc.

Business Address: 61 Hewett Street Warwick RI 02886

Description: A local employment agency.

Amount Owed: $185,933

16.

Business Name: RAF Corporation

Business Address: 501 Roosevelt Ave. #207 Central Falls RI 02863

Amount Owed: $209,460

15.

Business Name: Capco Steel LLC

Business Address: 55 Holly Hill Lane Cranston RI 02921

Description: A leading regional steel manufacturer that has experienced a series of well-publicized difficulties after a $5 million state-backed loan failed to help the business offset a loss of $85 million in contracts during the recession.

Amount Owed: $213,203

14.

Business Name: ADF Incorporated

Business Address: Po Box 40369 Providence RI 02940

Amount Owed: $272,300

13.

Business Name: Quality Concrete Corp

Business Address: 114 Martin St. Rehoboth MA 02769

Amount Owed: $283,306

12.

Business Name: So Fresh So Clean LLC

Business Address: 140 Vandewater Street Providence RI 02908

Amount Owed: $285,693

11.

Business Name: The Potting Shed Inc.

Business Address: 711 Union Street Portsmouth RI 02871

Description: A local gardening shop.

Amount Owed: $307,733

10.

Business Name: Coastal Recycling Inc.

Business Address: 71 Great Road North Smithfield RI 02896

Amount Owed: $372,363

9.

Business Name: Regal Auto Body& Radiator Work Inc.

Business Address: 135 Adirondack Drive East Greenwich RI 02818

Description: A local auto body shop based in Pawtucket (despite an official East Greenwich address). Its business registration has been revoked by the state.

Amount Owed: $389,242

8.

Business Name: Builders Resource Inc.

Business Address: 154 Sylvan Drive East Greenwich RI 02818

Amount Owed: $411,380

7.

Business Name: Richard D'Ambra DBA Mr. Flowers

Business Address: 9 Bowling Lane Bradford RI 02808

Description: A local flower shop.

Amount Owed: $527,584

6.

Business Name: Northeast Concrete Products LLC

Business Address: P. O. Box 2189 Plainville MA 02762

Description: A regional construction firm that offers precast concrete for stormwater and ulility projects.

Amount Owed: $608,530

5.

Business Name: Edward S. Johnson D/B/A Johnson's Boat Works

Business Address: 1128 Narragansett Boulevard Cranston RI 02905

Description: Johnson's Boat Works bills itself as New England's number one repair shop for Yanmar engines, a Japanese brand. The company offers other repair, restoration, and replacement services and also hauls and stores boats for customers.:

Amount Owed: $638,925

4.

Business Name: United Convenience & Petroleum Inc.

Business Address: 91 Modena Ave. Providence RI 02908

Description: A local gas station whose state registration has been revoked.

Amount Owed: $683,591

3.

Business Name: RI Marble & Granite Inc.

Business Address: 35 Terminal Road Providence RI 02905

Description: A marble and granite manufacturer and contractor that serves homes and businesses.

Amount Owed: $1,028,778

2.

Business Name: Frank J. Ogarek DBA Access O/F Group

Business Address: 17 Riverwoods Ct Rumford RI 02916

Amount Owed: $1,148,372

1.

Business Name: S & P Temporary Help Services Inc.

Business Address: 17 Florence Ave Lowell MA 01851

Description: S&P was a temp agency. In 2010, its owner, Cheang Chea, was sentenced to two years in prison for failing to pay millions in payroll taxes for the some hundreds of temp workers he had provided to 30 local businesses.

Amount Owed: $4,284,023

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