Rhode Island Gets Honorable Taxation
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How to assure an affordable level of local spending.

There is an important issue regarding S3050 (the law which sets the limit on annual increases to the tax levy) which should be reviewed; like other states such as Florida, Massachusetts and California, Rhode Island has settled on a fixed percentage limit to the levy increase, (4% by 2013).

Other states which have fixed precentages, regularly find themselves having to have referenda to override the legal limits.  Massachusetts towns have overridden limits over 35% of the time.

If they can't override, then services need to be curtailed or the burden shifts to new owners who must make up the difference.

With inflation of 2%, a 4% limit on increases could be considered higher than it should be.  Likewise if inflation is 7 or 8% a 4% limit is unrealistic. 

The law should be modified to index the limit to some portion of the CPI or other relevant index to reflect the economy as it exists.

This law should be modified now.

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Rhode Island Gets Honorable Taxation
R.I.G.H.T. © 2006

L.E.F.T.
Let's Everyone Fix Taxes


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Email
Harvey Waxman
73 Wright Lane
North Kingstown, RI 02852