Town could increase tax abatement
Published 3:48 pm, Friday, July 17, 2015
The goal is to lure new business to town.
On the table for town officials to achieve that is offering larger tax abatement for business property improvements.
An Aug. 10 public hearing is set at 7 p.m. at town hall for resident input on proposed abatement increases.
Esposito said the change would make the town more “vibrant,” attracting companies that would offer high-paying jobs.
If the proposal were to be approved, new and expanding businesses would be eligible to receive a minimum abatement offer, expressed as a percentage of the full additional property assessment over a three- to seven-year period based on improvement costs.
Tax abatement would be set by the Town Council at a level based on certain qualifying factors.
For improvements of $100,000 to $499,000, the abatement would cover a three-year period of 25 percent, then 20 percent, then 15 percent.
For improvements of $3 million to $49 million, the abatement would cover a five-year period of 50 percent in year one, then 45 percent, 40 percent, 35 percent and 30 percent in subsequent years.
Businesses investing $50 million or more would be eligible for an abatement period of seven years with 50 percent to 70 percent each year.
“The discussion comes up with savvy business owners on whether abatement exists and what abatement levels are,” said Luigi Fulinello, the town’s economic development director. “We need to craft what is of benefit to us.”