East Providence Council questions tax exemption for Providence Water's assessment

The Scituate Town Council meeting on January 23, 2025, focused on significant financial discussions regarding tax assessments and exemptions for Providence Water. Council members raised concerns about a recent decision to grant Providence Water an abatement on their personal property tax bill, which was based on a new state exemption law that took effect in 2024.

During the meeting, it was revealed that Providence Water received a $50,000 exemption on their tangible property, leading to questions about the legality and oversight of this decision. Council members expressed confusion over the application of this exemption, particularly since the existing tax treaty agreement, established in 2009, clearly outlined the assessment rates without provisions for reductions based on changes in state law.

Councilman McCormick questioned who authorized the exemption and whether legal counsel was consulted prior to the decision. He emphasized that the agreement should take precedence over state law in this case, arguing that Providence Water was not entitled to the reduction. The council discussed the implications of this decision, noting that even a small amount, approximately $1,800, could impact the town's budget, especially in light of a proposed 4% tax increase.

Additionally, the meeting touched on the broader context of tax agreements with Providence Water, highlighting a historical overassessment that led to a 12.5% discount in their current agreement. Council members called for a thorough review of the tax treaty and the decision-making process surrounding the recent exemption to ensure proper oversight and adherence to established agreements.

The council plans to investigate the matter further, aiming to clarify the decision-making process and ensure that similar issues do not arise in the future. This discussion underscores the importance of transparency and accountability in municipal financial decisions, particularly as the town navigates budgetary challenges.