EAST PROVIDENCE — The administration of Mayor Bob DaSilva through the Finance Department announced the tax rate for Fiscal Year 2023 following the state-mandated statistical revaluation …
EAST PROVIDENCE — The administration of Mayor Bob DaSilva through the Finance Department announced the tax rate for Fiscal Year 2023 following the state-mandated statistical revaluation conducted at the close of the previous calendar year.
Though the rate of taxation has been reduced, the bill for both residential and commercial property owners will rise. That's because the value of parcels throughout East Providence has skyrocketed since the last reval was done in 2018.
As presented to the City Council at its Tuesday, May 16, meeting by Finance Director Malcolm Moore, the tax rate year-over-year for residential properties dropped from $21.86 per $1,000 to $14.76 or down 32% while commercial dipped from $26.89 per $1,000 to $23.03 or down 14%. Also of note, the tangible tax rate actually increased, year over year, from $56.33 to $56.81 per $1,000.
However, the valuation, done by compiled by the Assessors Office and Northeast Revaluation, of single family homes increased substantially over the last four years from $232,000 to $350,000. Based on those figures, Moore said the average tax bill to be sent out in late May/early June minus the 13 percent Homestead exemption was about $4,300.
It should be noted the General Assembly, during its 2022 session, granted East Providence among other municipalities a one-year delay in conducting revaluations.
In prepared remarks from the mayor provided to the Council by DaSilva's Director of Administration Napoleon Gonsalves, the average increase for residential owners is estimated to be $130.
Gonsalves read from DaSilva's statement, "This state mandated revaluation is designed to ensure fairness and accuracy in tax assessments, and we are confident that the new assessments that we are implementing are fair and equitable to all taxpayers city wide.
"Property values can change over time due to a variety of factors, such as changes in market conditions, new developments in the area, or changes in zoning classifications. Because of these factors, it is necessary and state law requires municipalities to periodically revalue properties and adjust property values and tax rates accordingly."
According to the administration, the revaluation process included analyzing data on property sales and other relevant factors to determine the current market value of properties.
DaSilva's statement noted, "This information is then used to calculate the new tax rate. This process can be complex and time-consuming, but we believe that it is necessary to ensure fairness and accuracy in tax assessments."
Both the administration and member of the Council acknowledged the role the East Providence's General Assembly delegation, led in their respective chambers by Rep. Katherine Kazarian and Sen. Valerie Lawson, in passing legislation at the state level granting the city the one-time ability to adjust residential and commercial rates at different levels to avoid a rather large uptick to homeowners because of the enormous increase in real estate values.
DaSilva's remarks concluded, "We believe that the new assessments are accurate and the tax rate fair in light of the change in market conditions."
Over the last several months the Assessors Office and Northeast Revaluation heard a series of appeals from residents. Upon the request of the Ward 1 Councilor Frank Rego, Moore expanded on the process, providing the body and public with figures.
Moore said East Providence has 14,474 residential parcels. The total levy necessary to support operations of the for the current fiscal year is $62 million. That number divided by the number of properties equaled a bill of some $4,300 per parcel.
Moore continued, 429 residential appeals were heard, changes were made to 301 with an average reduction in their bill of $236. On the commercial side, with the 1,462 properties in the city, 69 appeals were heard with 27 accepted for an average of $4,400. In total, about $71,000 in relief was granted to residential owners and some $119,000 to commercial owners.
There remains an opportunity for taxpayers to appeal, via state law, within 90 days of the first due date of the first quarter taxes.