Four years after exiting bankruptcy, Central Falls may be able to lower property taxes. The decrease is part of the 2017 budget plan released Thursday by Central Falls Mayor James Diossa. If approved it would be the first property tax cut in a decade.
After exiting receivership in 2012, Central Falls had to follow a strict financial path toward solvency. The plan dictated an annual four percent property tax increase over five years. But this new budget proposal includes a 3.4 percent property tax cut; the reduction comes a full year earlier than expected.
And Mayor James Diossa said he’s also avoided some new tax hikes.
“Because of the fiscal responsibility and management, we’ve also been able to freeze the commercial rate, freeze the motor vehicle rate,” said Diossa.
Diossa says rising property values also helped avoid a tax increase. But one of the city’s biggest remaining challenges is unemployment, which is higher than the state average.
It’s the last budget under the purview of the state bankruptcy plan. The $18-million proposed city budget spends about one-percent less than the current fiscal year.