Warwick City Council debates property tax adjustments to maintain revenue from commercial class

The Warwick City Council convened on May 5, 2025, to discuss significant changes to the property tax structure aimed at maintaining revenue stability across commercial and residential properties. The meeting focused on proposed amendments to existing tax legislation, particularly concerning the ratio of commercial to residential property tax rates.

The Director of Finance emphasized that the proposals were not intended to increase taxes on commercial property owners but rather to ensure that the revenue from commercial properties remains consistent. He noted that recent market trends have led to a faster growth rate in residential property values compared to commercial properties, which could inadvertently shift the tax burden onto residential owners if no adjustments are made.

Councilman Napa highlighted the need for flexibility in setting tax rates and adjusting ratios to reflect current market conditions. He proposed an amendment to simplify the existing legislation, suggesting that the city should not have to repeatedly seek state approval for tax adjustments. This amendment aims to streamline the process and allow the council to maintain control over local tax policies.

The discussion included concerns about the potential impact of these changes on residential taxpayers. Several council members and public attendees voiced their apprehensions regarding the clarity of the proposed changes and their implications for tax burdens. Anne Sheridan, a member of the public, raised questions about the fairness of the proposed adjustments, particularly regarding the treatment of commercial properties during revaluations.

The Director clarified that the intent of the amendments is to stabilize revenue from commercial properties, which currently contribute 32% of the net tax levy. He assured attendees that the proposed changes would not lead to increased taxes for commercial property owners, as they are not seeking reductions either.

The council members agreed on the importance of ensuring that any changes made would be transparent and allow for public input during the budget process. The meeting concluded with a commitment to further refine the proposed amendments to ensure they align with the city's goals while addressing community concerns.

Overall, the council's discussions reflect a proactive approach to managing property tax structures in Warwick, aiming to balance the needs of both commercial and residential property owners while maintaining stable revenue for city services. Further deliberations and public engagement are expected as the council moves forward with the proposed changes.