Who pays commercial taxes in Worcester, don't you want to know?

Straight out of the Worcester Business Journal here are our top 10 taxpayers.

What do we see here.  A group of taxpayers who can't leave no matter how high we raise the commercial tax rate.

If anyone follows WorcesterMulti they know that I complain all the time about how the dual tax rate (Residential taxpayers pay $15.22 per $1000 and commercial pays $33.34 per $1000) so on a $1mm property residential will pay $15,220 and Commercial will pay $33,340 a year in taxes.  

And, I continue to say that this is killing the commercial tax base by forcing/encouraging investors to convert their buildings/properties to Residential uses to save the taxes.  We see this by the choices developers make in building residential not commercial development.  

Why own commercial property?  I guess since you have to.  

Let's delve into the data.

Of the top 10, only 1 of these is residential, #10. which is 145 Front street which is assessed at $74mm and taxed at $1.2mm-  Lets look at #s 5,6,7,8,9 all of whom have lower assessed values and pay more in taxes.  Look specifically at #9 Reliant Medical group who is assessed at 1/2 that value ($39mm and is taxed at the same $1.2mm)

Of the top 10, 4 of these can never move since they are utilities, and they simply pass the taxes back to the residents in the form of higher rates (National Grid, NSTAR Gas, New England Power, Verizon)

Of the top 10, 2 are Medical (#3 St. Vincents hospital and #9 Reliant Medical Group) once again these entities pass through to the end use.  However, they are at a disadvantage to UMASS Medical Group who as you can see DOESN'T PAY TAXES 

Who are the other 3 We haven't discussed?

#4 Hannover Insurance Group who pays $2.4mm in taxes , #5 AbbVie inc.  who pays $2.4mm in taxes-  THANK YOU FOR STAYING 

and the outlier here #6 Lincoln Plaza- Target, Lowes, Stop and shop-   AND DON'T FORGET DICK'S SPORTING GOODS and BARNES & NOBLE  WHO WENT OUT OF BUSINESS. This property here was so bad they basically got it for free  in 2000 WHEN IT WAS DEMOLISHED. Why are these businesses having trouble, probably because the rents have to be so high to support the $1.9 Million in commercial taxes.

Why did they tear down the Movie theatre?  Not because people from Worcester don't go to the movies, but rather the taxes were too high for the value of the land which is now used for residential housing a the lower tax rate.

Let's compare Lincoln Plaza Assessed value of $62mm and tax of $1.9 Million, and The Shoppes at Blackstone Valley in Millbury MA down the street which is assessed at $109 Million and taxed at $14.45 per Thousand for a tax of $1.6 Million

It is nice that these taxes are being paid, but if we keep the tax rate on commercial property at twice as high as residential properties, Worcester will become the bedroom community to the suburbs who have jobs and everyone will have to commute out of Worcester for their jobs and services.

Ask your City Counselor to reduce this disparity.