The Taunton City Council meeting on December 3, 2024, focused on a proposed tax increment exemption for a new residential development at 74 Ware Street. The council discussed the implications of granting a 50% tax break for the first three years of the project, which has raised concerns among some council members regarding the potential impact on city revenue.

During the meeting, several councilors expressed their apprehensions about the size of the proposed tax exemption. One councilor noted that a 50% discount on the tax rate seemed substantial, especially in light of recent tax increases. However, it was clarified that similar exemptions had been granted in the past for significant projects, including the Whittington Mills development, which also received a 50% exemption in certain areas.

Supporters of the tax exemption argued that the project would generate new tax revenue for the city, estimating an increase of approximately $271,718 in new city tax dollars if the project proceeds. They emphasized that without the tax break, the project might not be financially viable, potentially leading to higher rental rates that could burden future tenants.

The council also discussed the importance of attracting businesses to the downtown area, with some members expressing optimism about the demand for commercial space due to the influx of new housing. The conversation highlighted the need for a balanced approach to development, ensuring that the city can capture revenue while also fostering growth and revitalization in the downtown area.

In conclusion, the council voted on the proposed tax increment exemption, with some members supporting the measure as a necessary tool for economic development, while others remained cautious about the long-term implications for city finances. The discussion underscored the ongoing challenge of balancing development incentives with fiscal responsibility in Taunton.