Southington To Have Kinder, Gentler Approach To Business Tax Collection

SOUTHINGTON, CT — Town officials still want local business owners to pay their fair share of personal property taxes if they're not doing so already.

But they have opted against hiring an outside contractor to help the tax collection office audit businesses and determine whether owners are paying too little ... or, even, too much.

No vote was required at the Jan. 23 Southington Town Council meeting, but town leaders, by a unanimous consensus, opted for the town to adopt an educational, not enforcement, approach toward business personal property tax collection.

And, if all goes well, Southington's coffers could add up to $3 million in revenue if business owners are better educated about what they may owe and why.

At the prior council meeting Jan. 9, an outside consultant was brought in to go over a plan for them to aggressively pursue business owners for taxes owed via an audit process.

In return, the contractor would have gotten a piece of any tax revenue collected via this route, instead of all of it going to the town.

Since then, Southington Town Manager Mark J. Sciota met with several council members individually and with town staff.

The end result is an approach that works with both business owners as well as helps ensure fair taxes are being collected.

Many were concerned about perceptions of a heavy-handed approach to collecting taxes.

"Obviously, being business friendly is important to us, but also being responsible to the taxpayers is important to us," Sciota said.

What came about, is a multi-part plan involving the Town of Southington's tax collection office to educate and inform business owners regarding their tax liablities or, even, potential tax breaks.

Southington Director of Assessment and Revenue Teresa Babon briefed the council on her department's plans going forward.

She said she heard in recent weeks the business community was concerned the effort was a straight enforcement approach to taxes.

"For me to hear, what appears to be, feelings that we would be going into these businesses wielding baseball bats and beating documents out of business owners, it couldn't be further from the truth," Babon said. "It's not meant to be a contentious process."

She said part of her department's job is to educate businesses about potential tax breaks in addition to potential tax liabilities.

"We go out of our way to make sure these businesses get the exemptions that they're entitled to," Babon said.

In coming months the town will be working with the local chamber of commerce to reach out to the business community, drafting letters, creating an informational video on business taxes and hosting two information sessions in July and August with the community.

The hope is by working with business owners, they will understand how the tax process works regarding business personal property and, thus, end up paying their fair share.

Babon said she hopes, by January 2024, there will be a noticeable increase in tax revenue because of this effort.

If not, Babon said the town may have to, later, employ alternative measures to ensure businesses pay their fair share.

Council members endorsed the plan, saying the problem isn't a deliberate attempt by business owners to be tax scofflaws.

Rather, they say, it's an issue of education and information, of not understanding the complex tapestry of how business personal property taxation works.

"This is wonderful that we would extend ourselves in this way," Southington Town Council Chairperson Victoria Triano said Jan. 23. "I want to believe that people who don't know, need to know, because they want to do the right thing.".

Paul Chaplinsky Jr., the council's vice chairman, agreed.

"I think this is a great approach," Chaplinsky said. "The effort there is a little bit more on our side, but its a fair way to go.

"With that, we should see substantial efforts without giving up revenue for a third party," he said. "I think we're going to see positive things and we'll learn from it and we'll continue to adapt."

From Jan. 17: 'Southington Council Mulls Local Business Tax Audits'

For the minutes of the Jan. 23 Southington Town Council meeting, click on this link.