For years, Kingston has offered tax incentives to new businesses in the hope that they might relocate to Kingston. However, businesses who have remained in Kingston for many years have received no tax break and instead continue to pay exorbitant taxes. Many businesses have left Kingston unable to endure the burden any longer.
I am proposing tax breaks, but only for those businesses that are already here and have demonstrated a commitment to Kingston.
Currently, businesses owners pay taxes based upon the assessment of their buildings by a certain amount per thousand dollars of assessment. In other words, if the building is assessed at $500,000, then the owner pays 500 times the amount per thousand.
My proposal offers reductions for businesses that have been in the City of Kingston for 10 years, 25 years, and 50 years. Once a business has been here in the City of Kingston continuously for 10 years, then a reduction of $1.00 per thousand would apply. Using the building assessed at $500,000, the business owner would save $500 per year.
After 25 years of being continuously in Kingston, another dollar would be reduced from the price per thousand. After 50 years of being continuously in Kingston, another dollar would be reduced from the price per thousand. Thus, using the building assessed at $500,000, the business owner would save $500 per year after 10 years, $1,000 per year after 25 years, and $1,500 per year after 50 years.
A business would have to apply for this tax reduction (much like residents have to apply for STAR) and verify the time of continuous existence in the City of Kingston. Obviously, if a business owner sold the business to someone else, then the time would reset. Death of a business owner would not reset the clock if the business was continued by another family member.
It seems to me that a business that has been loyal to Kingston for 10, 25, or 50 years deserves a tax break more than a business that is contemplating coming to Kingston and may not even stay. My parents taught me the importance of loyalty. Kingston should reward those businesses that have been loyal to Kingston.
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11 comments:
Yet another great idea, Rich.
Looks like a great way to keep new business from coming to Kingston!!
8:07,
That's a narrow and frankly incorrect view.
And then explain to the rest of the taxpayers who will pick up the difference in not collecting the taxes for rewarded businesses and who will monitor this brainstorm of an idea? Much like the Pike Plan being over budget and who will have to pay for that blumder? With all due respect, it all looks good on paper but when people are struggling on a daily basis to meet their expenses, can't pay their fuel and electric bills and businesses will get a reduction in their tax bills. Why not submit a similar plan for City residents then who have been settled here for the same amount of time? Reward them for their suffering and struggling. Did you bother to ask the local businesses if they thought this was a great idea or are you pulling the rabbit out of the hat and catching everyone by surprise to gain more popularity. Save it for the debate...
8:07
obviously you dont pay commerical taxes, or have done any research befor you commented
If you were attempting to purchase a business here you would understand why this proposal would be some sort of incentive to plant roots here
Mr Soon to be mayor, my I suggest that you consider a tax reduction for the first few years for any new building owners as well in your proposal, and maybe even a tax break for any new business employees that purchase a home here as well for a few years?
Its thinking like this that just may intice a new business to relocate and overlook the crime and filth that must be next on your attack list!
8:07 Keep working for the man, you have no clue about property and tax codes!
Rich, you are looking better and better! Thanks to negative comments made by Jeremy on his blog against Hayes, I would imagine this will be a a turn off to many and a reflection on Gallo for allowing it.
You continue to be professional and sincere. This does sound like a great idea for the loyal businesses of Kingston. My thought when I read it was someone will find fault...but it's not etched in stone and can be revised. The actual years and dollar amounts can be changed if everyone does not agree. It is surely a beginning. I would like to ask about the people who got loans from the city to start businesses and did not pay back...any way to get them to pay the city back? We gave them loans, they invested in businesses that did not succeed and just walked away from their obligation to pay back the money. Not right. Is it still the practice of this city to lend money like this? Please explain.
as i have reported in the past,after enduring 3 rounds of natzi planning board whom are in NO WAY encourging through the ENTIRE process to want to either purchase or conduct busisness here in the city.it would be a incentive to keep the currant busisnesses already here and maybe that would be the encourgement new busisnesses would like to see to draw their attention to this great city.god knows there is nothing else either the economic devlopment office is doing for small busisness or for that matter anyother busisness to want to come here.especially whe this city is so RELIANT on sales tax revenue.wake up people in city government.
11:46,
Your negativity is almost overwhelming. Nevertheless, the answer to your question is obvious.
Considering that the City of Kingston had almost a million dollar surplus this past year, my tax proposal is already paid for.
Second, as noted by a more astute comment, the actual amounts can be negotiated depending on the status of the budget and economy. The idea is to give businesses that have already been here a break. With more money, a business can invest, hire more people, expand, etc. That is what we want in Kingston, is it not?
4:18,
I have a proposal that I will be releasing soon dealing with business owners who reside in their business. It is not exactly what you propose, but I think you will like it. Stay tuned.
6:34,
I will take a look at the outstanding loans when I am Mayor. I think a blanket policy in tat area would be unwise. I think review on a case by case basis makes the most sense.
So what government are you going to CUT to make up for the less taxes paid by businesses..Since you think the taxes are outrageous..and they ARE..Tell us what you are going to cut.. Payroll and union benefits would be the biggest expense..start there..
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