Select board opposes plan to limit excise-tax collections; town launches new website
/The town of hull launched a new version of its website this week. click here for more.
By Carol Britton Meyer
The select board this week voted to send a letter to state Senator Patrick O’Connor and state Representative Joan Meschino opposing proposed legislation that would eliminate driver’s license suspensions for non-payment of auto excise taxes and other non-safety-related debts.
“While we appreciate the intent of the bill, we believe it would result in significant and material unintended consequences for municipalities across the Commonwealth,” according to the letter signed by Chair Irwin Nesoff opposing S. 2874, An Act to Increase Opportunity by Ending Debt-Based Driving Restrictions. Member Jason McCann was absent from Wednesday night’s meeting.
The purpose of the bill is to “remove economic roadblocks” for those who are unable to pay their excise tax bills due to financial constraints, lose their right to renew their license, and then have trouble getting to work.
Town Manager Jennifer Constable noted that a payment plan may be available for residents who are unable to pay their excise tax through the treasurer-collector’s office.
The Massachusetts Collectors and Treasurers Association reached out to communities asking them to share their concerns about the proposed legislation with their local legislators. Hull Treasurer-Collector Eileen White recommended that the board write the letter.
This is because motor-vehicle excise taxes are among the largest sources of local receipts for communities, “and the Registry of Motor Vehicles hold for non-payment of motor vehicle excise tax is currently the only effective enforcement mechanism available to municipalities to ensure collection,” according to the letter.
“Even with this enforcement tool in place, excise tax collection rates in the year of billing are already substantially lower than those of other local taxes,” the board wrote. “Without a comparable mechanism, collection rates are likely to decline further, resulting in unavoidable increases in property taxes.”
The letter also notes that the excise tax is often the only local tax paid by both renters and property owners.
Currently, many taxpayers only pay outstanding excise bills when a registry hold affects their ability to register a vehicle or renew a license. “Removal of this enforcement tool will significantly impact a municipality’s ability to collect these taxes,” the letter adds.
Hull’s motor-vehicle excise tax collection rate of 96.4% represents about $1.66 million in revenue. The approximately 3% not collected equates to roughly $58,500. Under current law, this amount is expected to be recovered in future years through registry holds, which can be released within 24 hours of payment.
“If this enforcement mechanism were eliminated, there would be no clear expectation of recovery,” according to the letter. “As a result, municipalities would be required to increase overlay reserves to cover the shortfall, doubling the tax impact.”
The letter also notes that at a time when housing affordability is a “pressing concern,” the loss of this enforcement tool “would negatively impact property owners and businesses through increased taxes, as well as renters, who would likely experience these costs passed on through higher rents. Alternative enforcement methods available to municipalities, including collection agencies and credit reporting, would impose additional administrative burdens and costs, creating further financial harm for both communities and taxpayers. … Preserving this enforcement mechanism is essential to maintaining fiscal stability and avoiding further impacts on housing affordability.”
In other business
• Mambo’s owner Anthony Ghosn notified the board that the restaurant will be temporarily closed while undergoing renovations. On March 8, the restaurant posted on social media that it was closed due to a burst pipe. Holders of liquor licenses are required to inform the town of any prolonged closures.
• The board met in executive session at the end of the meeting to negotiate the town manager’s contract, which expires later this year. Constable was recently given a 3% cost-of-living adjustment under her current three-year agreement.
• Christopher Hanes Lassiter resigned from the Veterans Council and War Memorial Commission since he is moving out of town.
• The first select board office hours session this week attracted one citizen, who asked a question about hybrid meetings. The next office hours will be one-half hour prior to the 7 p.m. May 20 meeting, when select board members Nesoff and Brian McCarthy will be available to talk with the public. Also, Constable held town manager office hours at the senior center on April 1, and plans to continue the practice.
• Constable also reported that town staff and a couple of Hull Redevelopment Authority members met with representatives from the Department of Conservation and Recreation, which included a discussion about the proposed two-way road reconfiguration plan near the HRA property and a DCR sea level rise/climate change study. Constable called it a “great meeting.” The DCR is expected to provide an update to the community on a number of subjects in the near future.
• By a 3-1 vote, the board did not support member Jerry Taverna’s suggestion to consider increasing the board’s annual stipend with an annual 3% cost-of-living adjustment, similar to one received by some town employees. The chair currently receives $3,000 and the other members, $2,500.
• An updated and modernized town website (www.town.hull.ma.us) launched on April 8. Constable’s assistant, Michelle LeBlanc, played a significant role in getting it up and running, among others. Additional information will be added to the site, with more frequent newsletters planned.
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