Budget Commission Sends Homestead Reduction - Car Tax Combo To General Assembly

One-time vehicle tax will raise $500K, Homestead drop will raise $2 million.

  The Woonsocket Budget Commission voted yesterday to add $2.5 million to this year's tax levy with a one-time supplemental tax bill on vehicles at about 6.2 percent of 2012's bill and shrinking the Homestead Exemption permanently to 29.9 percent. The Commission voted to approve the new tax bills at about 4 p.m. in Harris Hall at City Hall. State law doesn't allow the city to keep the vehicle tax that high perpetually, so subsequent years will raise the entire extra $2.5 million annually needed to balance the city's books entirely from lowering the Homestead Exemption, this time to 27.5 percent. The move is a combination of elements of several options outlined by Tax Assessor Chris Celeste during the last Budget Commission meeting, …

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