Town plans incentives to rent storefronts

NORTH CANAAN — A tax abatement plan is being proposed by town officials. It would offer a break to businesses that occupy or move into storefront rentals.

In the plan described last week by the Board of Selectmen, no personal property taxes would be charged in the first year. Taxes would be levied at 50 percent in the second year, and charged at the full rate in the third.

It is a plan designed to help businesses through a tough economy.

Personal property refers specifically to a tax placed on a business’s fixed assets (office equipment and machinery, for example).

At present, the plan is just that. It can’t be put into action at the moment. “There is nothing in the statutes that allows us to rebate taxes,� First Selectman Douglas Humes said. “We have written to our state legislators to request they propose a new bill that allows it. We sent a copy to Governor Rell, explaining that the state will still collect sales tax from businesses. It won’t see any losses.�

The only tax loss would be to the town, which would lose the personal property tax revenues temporarily.

The selectmen are hoping the bill will be approved during the state legislative session that begins Jan. 7. If so, the abatement would be retroactive to Oct. 1, and affect tax bills in the coming fiscal year, which begins July 1.

It is early for legislators to comment specifically on the chances of a bill passing, but state Sen. Andrew Roraback (R-30) offered this opinion by e-mail, in which he says he feels the North Canaan plan makes sense.

“It has never been more important for the Legislature to give towns additional tools to promote economic development given the difficult times we face. I believe all ideas should be on the table, and I think [the town’s] proposal to give towns the option to entice new businesses should be seriously considered.�

 

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