Selectmen to Pitch Small Business Tax Cuts

Dedham Board of Selectman chairman Jim MacDonald asserted that the board and town assessors will propose a Town Meeting warrant article in May that would seek a property tax break for small businesses.

"That will be done for the Town Meeting," MacDonald said at Thursday's meeting.

MacDonald made the promise after a lengthy debate on how the town splits its tax levy between residents and businesses and how a high tax rate has hurt small businesses in recent years.

The board voted Thursday almost evenly between commercial and residential properties. The commercial tax rate remains nearly twice that of residential rates.

State legislation allows selectmen to reduce the assessed value of a business up to 10 percent, if that business is valued at less than $1 million and employees fewer than 10 people.

Selectman Paul Reynolds agreed that the town should help small businesses "if there is a mechanism out there."

But because the cut wouldn't change the tax levy limit, the funds would have to come from elsewhere, Board of Assessors chairman Richard Bremer said.

Other commercial and industrial property would pick up the difference with an increased tax rate, according to state documents.

That means landlords who lease out space to small businesses wouldn't qualify if their property's assessed value exceeds $1 million.

Examples include the building, assessed at $1.33 million in 2011, and 420 Washington Street, owned by Giorgio Petruzziello, assessed at $4.7 million. Both buildings rent out space to small businesses who wouldn't benefit - but could be hit harder if landlords pass on the tax increase.

The board will weigh all possible tax benefits they could implement for elderly, veterans, the disabled and small businesses as the board will hold a meeting with State Rep. Paul McMurtry and state Sen. Michael Rush, MacDonald said in an email Monday.