Worcester chamber says CPA will raise taxes

Courtesy Stuart Loosemore, director of public affairs and government policy at the Worcester Regional Chamber of Commerce.

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By Zachary Comeau

The Worcester City Council is considering placing a ballot question in November to ask city residents to adopt the Community Preservation Act, but at least the city's main business group is hesitant to sign on to a proposal to increase taxes.

In a statement, the Worcester Regional Chamber of Commerce said Monday it has concerns about any proposal to raise property taxes.

The CPA, signed into law in 2000, allows Massachusetts cities and towns to add a tax surcharge on local property taxes of up to 3 percent to help finance projects for open space protection, historic preservation, affordable housing and outdoor recreation.

About half of the state’s municipalities have adopted the law, and Worcester may be the next.

The City Council is expected to discuss the matter Tuesday night.

The new taxes, however, could force more businesses to leave Worcester, said Stuart Loosemore, general counsel and director of government affairs and public policy at the chamber

In a statement, Loosemore cited recent relocations of large companies, including manufacturers Curtis Industries and Primetals.

“This will result in the loss of approximately $600,000 annually in property taxes and 500 good paying job to Worcester,” he wrote. “Moreover, ancillary spending by these 500 employees will be lost to Worcester business as well.”

The city's dual property tax rate -- which has commercial taxpayers paying $34.03 per $1,000 valuation and residential payers contributing $18.91 per $1,000 -- is a major factor in those businesses leaving, Loosemore wrote.

The chamber plans to heavily scrutinize the CPA proposals, and any tax increase will be weighed against any potential benefit of adopting the law, Loosemore wrote.