Taxes and Capital Projects: A Conversation with the Division of Local Services

By Andrea Bunker, Library Building Specialist at the MBLC

Taxes: one of the known inevitables in life, and in Massachusetts, a subject with a complicated and storied past. Therefore, it is no surprise that advocates of public library building projects often must address whether or not capital improvements will cause an increase in property taxes for residents. For this episode of Building Literacy, we went to the experts on municipal finance and taxation: The Department of Revenue’s Division of Local Services (DLS). With both regulatory and educational functions, the DLS not only provides oversight but also educational opportunities for municipal finance officials. Their Senior Deputy Commissioner, Sean Cronin, converses with us about the basics and what every municipal official, library building project stakeholder, and resident should know.

This episode is more Massachusetts-focused than many of our others, due in part to the local tax landscape defined by Proposition 2 ½, a property tax reform initiative passed by the voters in 1980. Mr. Cronin discusses the tools and mechanisms available to municipalities within the parameters of Prop 2 ½, such as overrides, debt exclusions, bonding, and stabilization funds. In addition to the basics, we touch upon capital plans and forecasting, even amidst a pandemic. Throughout, he also offers resources that are available through the DLS website: www.mass.gov/DLS.

So, if you think taxes are a dry subject (with the exception of the Boston Tea Party,) you may want to check out this episode! As always, if you have any questions, comments, or suggestions for future episode topics, please email me at Andrea.Bunker@mass.gov.

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