In 2002 State legislation was passed that allowed real estate development to happen in mill buildings in the Valley section of Providence, Rhode Island. The State and Federal tax credits paid for 50% of the construction costs of these projects. In Providence the developers also negotiated 10 year tax incentives to reduce the amount of property taxes they would pay. The amount was significant. To give you an example the entire Monohasset Mills Condo project paid only $12,836 a year in taxes compared to the $ 398,451 dollars that they normally would pay.
In 2010 a group of developers went to the Statehouse to extend their tax credits another five years and this passed without input from the Citizens of Providence, City Council or the Mayor. It cost the City of Providence $11 million in lost revenue at a time of great fiscal distress.
Now in 2015, 5 projects are asking for yet another 5 year extension. The construction jobs are long gone and these buildings have been occupied for quite some time. 3 are condo projects and have changed hands many times. The rents are high and many of the condos are worth over $500,000. The people of Providence feel as though it is time for these projects to pay their fair share of property taxes and end what now amounts to no more than tax evasion.
If the Ordinance passes it will cost the tax payers over $3 million dollars, at a time when our City is still having major fiscal issues. THIS ORDINANCE COSTS $1MILLION THIS NEXT BUDGET AND THE MAYOR AND COUNCIL PRESIDENT THINK THERE WILL BE A TAX INCREASE.
Commercial taxes are high, Rental Property taxes are high and Residential Owner occupied are high, not to mention the car tax The incoming predictions are that values are going to go up and so property taxes will be going up this year. Is it fair to have EVERYONE ELSE'S taxes go up while some of some of Providence's wealthiest corporations and individuals pay next to nothing and and are trying to extend that for another 5 years. We think not!
Stop Tax Evasion in Providence - STEP!
To read a copy of the Ordinance click on this link and then click on the project: http://providenceri.iqm2.com/Citizens/Detail_Meeting.aspx?ID=3161
Sign the petition - OVER 250 PEOPLE HAVE ALREADY SIGNED IT