Final 2011-12 Property Tax Rates Lower Than First Reported

The Town Council learned Monday night that local property tax rates will only be going up 1.39 percent, not the 3.1 percent presented at the recent Financial Town Meeting. 

One reason, according to Tax Assessor Janice Peixinho, is that many residents bought new cars during the federal "cash for clunkers" program in 2009 and those cars are only now being added to the tax rolls.

In addition, new buildings in town also helped lower the property tax rate to $17.49 a thousand from the $17.79 approved for the 2011-2012 budget at the Town Meeting. The 2010-2011 rate was $17.25.

Town Manager Bill Sequino and Assessor Peixinho said they used the best information available for the numbers they present at the town meeting, but that it takes time to get a final, accurate figure, and it is not unusual to have an adjustment when the numbers are finalized.

In a letter to the council, Peixinho said East Greenwich has been fortunate to have had some growth.

As of December 31, 2010, her office recorded an increase of some $19 million dollars in real estate, tangible and motor vehicle tax rolls, which added $325,000 in tax revenue and resulted in the lower tax rate.

In addition to “cash for clunkers” she attributes the property value increase to building development and the medical office buildings expansion on Route 2.

In response to Sequino’s request to explain to the council the delay in arriving at her final numbers, Peixinho said coming up with an accurate number is complicated because parts of Warwick and East Greenwich share the same zip code and she has to manually separate Warwick car owners from the list generated by the DMV.

She said she has been working with the DMV on a correction for over two years.

A change in the town software package also had an impact on estimating the preliminary totals for both assessments and revenues as she also had to manually price all tangibles for 677 business accounts. Tangibles are manufacturing tools, office equipment and other business assets. 

According to Peixinho growth also enabled the town to recoup most of the value that was lost when some businesses closed.

Sequino said the assessor’s office has done a good job with tangibles and now also has legislative authority to pursue people who move away without paying vehicle taxes. East Greenwich is one of several communities included in state legislation in the just-completed session. The town can now place tax liens on vehicles with unpaid taxes, which prevents owners from registering a vehicle until the tax is paid.

After Peixinho described her frustrations with the Munis software program used by the town, Council members questioned why the town continues to use a system that doesn’t seem to work all that well, especially in light of a $40,000 a year maintenance fee.