New tax ordinance in Burrillville aims to encourage investment

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BURRILLVILLE – Members of the Burrillville Town Council have approved a tax stabilization plan that aims to encourage investment in blighted areas of town, with rewards for small business owners and developers in the form of tax credits.

The ordinance, passed unanimously by the board on Wednesday, Oct. 28, will provide relief for both improvements to existing structures and new construction, and will take effect on Tuesday, Dec. 15.

Councilor Stephen Rawson, who helped develop the plan through the Ordinance Subcommittee, described it as the most important change he’s worked on since he first began serving the town in the 1980s.

“This is going to be a shot in the arm, especially for small businesses,” Rawson said. “I’m really excited about this.”

The change provides exemptions for structural improvements and rehabilitation costing at least $2,500 for commercial, industrial and mixed use buildings, and apartment houses with six or more legal units in target areas. Projects costing $100,000 or more could qualify with council approval.

Improvements to existing structures will be subject to a three year stabilization plan, with around roughly a sixth of the initial investment to come back in the form of credits, according to a schedule.

New construction will be subject to a seven-year plan, with buildings taxed at just 20 percent of their value in the third year.

The ordinance requires investors to apply for the tax break, and specifies the lots that qualify, with dozens of parcels along Grove Street and Sayles Avenue in Pascoag, along with Victory Highway in Oakland. In Harrisville, the ordinance targets Chapel Street, Harrisville Main Street and lots along Callahan School Street.

And according to Rawson, it’s just the start of a broader plan to encourage more investment and improve substandard areas in town.

“There’s going to be changes coming to this,” he said.

Councilor Raymond Trinque agreed, describing the ordinance as a, “starting point.”

“This isn’t done. The areas could change, the types of units could change,” Trinque said.

Councilor Amanda Gingell noted that everyone involved put a lot of work into the new legislation.

“I’m excited for it too,” Gingell said.

Town Manager Michael Wood described the new exemptions, laid out in section 25-48 of the town’s general ordinances as, “meaningful,” noting that, “The administration supports this whole-heartedly.”

“This is actually an example of when local government is actually doing something and providing opportunities to do some good,” Councilor Donald Fox said in expressing his support.

According to Rawson, town Solicitor William Dimitri said he does not know of any municipalities with similar legislation on the books.

“It seems we again are on the forefront of starting something innovative and helping our small businesses to survive,” Rawson said. “Down the road, this will pay dividends on the tax rate, because businesses will come here to take advantage to this.”

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