Most voters have listened to the Middleboro Board of Selectmen create an effective argument about the need for NEW REVENUE, NEW BUSINESS, NEW COMMERCIAL DEVELOPMENT.
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And of course, the Selectmen fail to disclose the development they've chased away.
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Some, perhaps many, accept the soundbyte because it seems to make sense.
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In very simple terms, I have argued that whether Middleboro attracts a new business that pays real estate and excise taxes or that Middleboro saves money or generates interest income, it's a dollar. It's money in the coffers regardless of the source.
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Middleboro has been truly blessed with a municipal gas and electric company that allows the Town to avoid borrowing because of the cash flow created. It's FREE MONEY to Middleboro that could and should generate INTEREST INCOME.
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In the Department of Revenue Report made available to the Middleboro Board of Selectmen in May 2007, the DOR recommended Quarterly Tax Billing, combined with Bi-Monthly Payroll.
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The IT Director, the Assessor and Town Treasurer have conspicuously opposed those efforts. And the Middleboro Board of Selectmen, after almost a year, appear unwilling to do their own research or make those complicated math calculations and do the right thing for taxpayers.
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When I posed the question to Mr. Shea, a candidate for Assessor in the April Town Election, the following is his response LINK:
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Quarterly tax billing would allow Middleborough to bill approximately 25 % (plus 2 ½%) of the prior year’s levy on July 1, due August 1, and another 25% (plus 2 ½%) on October 1, 2008.
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On July 1, 2008 the Collector can send out bills totaling about 6.9 million dollars. We would have most of that in the town’s coffers on or around August 1, 2008.
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The Collector would again, on October 1, 2008, send out bills for about 6.9 million dollars, due November 1, 2008.
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For sake of discussion, to make a point, let's say: The Collector can charge 14% interest per annum on delinquent taxes. We all know this.
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Could it not be argued that Middleborough is losing this 14% (call it an opportunity cost) for the amount of time it does not have those tax dollars in a Town account? If so,
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Amount of tax times 14% divided by 12 months, times 5 months (August thru December)
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$6,900,000 x .14 / 12 x 5 = $402,500 Amount of tax times 14% divided by 12 months, times 2 months (November and December) $6,900,000 x .14 / 12 x 2 = $161,000
Total interest lost = $563,500 (opportunity cost lost)
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This appears to be an absurd amount, but the mathematical logic is there. I used 14%. Try it with 7% ($281,750) or 3.5% ($140,875) or 4% ($161,000). Jessie Powell is not so wrong, is she?
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The Assessing Department merely has to provide a data dump including all new owner’s names and addresses subsequent to January 1, 2007, and an approximate assessment of any new real estate parcels “created” since January 1, 2007 (lots or condos). Any “new” accounts should already be in the assessor’s system by June 1, 2008 anyway.
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If elected, I will try my best to persuade my fellow officials to “Go Quarterly”.
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Just remember: The Assessing Department,…The buck starts here.
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Chuck Shea
1 comment:
I for one can hardly wait to see if this casino ever does come how it will help the local businessmen. I STRONGLY believe that with what the plans seem to say with a mall, water park, eateries, golf course, etc. This will KILL local golf courses, as well as small downtown stores that are barely staying above water with todays money problems. Then again, who are we to question the BOS or department heads that feel with the cart before the horse that we need to be prepared. All this pre preparing is costing US THE TAX PAYERS MONEY for something that may NEVER COME TO TOWN. Once again, I'm quite certain, "Everything is being taken care of". Who will be the first we can turn to to say "WE TOLD YOU SO"? BOS, department heads, the newspaper editors, or the followers that are still believing the BOS.
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