South Windsor Chamber President Calls for Minimal Tax Increase

Amid discussions of full-day kindergarten, setting aside money for the capital improvements fund and other budgetary issues for the 2013-14 fiscal year, one segment of the South Windsor population had remained relatively silent: the business community.

In a rare move, however, the president of the South Windsor Chamber of Commerce warned the Town Council at a special work session on April 8 that a significant tax increase could have a long-term adverse affect on the business climate in town.

“With a possible significant increase in property taxes, the result could be the loss of jobs and businesses from our community,” South Windsor Chamber of Commerce President Julie Lapp said.

Lapp said that, with a rising mill rate coupled with devalued residential properties, the chamber encouraged the council to minimize and business tax increase.

In the event of a tax increase, Lapp requested a “phased plan of implementation be applied to create a more business friendly town government and further encourage continued economic growth and community development in South Windsor.”

In March, Town Manager Matthew Galligan unveiled a $103.2 million budget for the 2013-14 fiscal year that calls for a $4.7 million, or a 4.8 percent, spending increase over current levels, including $35.1 million for the town budget (including operating, debt service and capital improvements) and $68.12 million for the board of education.

The recommended tax rate to support the budget is 35.05 mills, which represents an increase of 5.62 mills over the current mill rate, according to Galligan.

The average homeowner would see a tax increase of somewhere between 4.5 and 6 percent, Galligan said at the time.

Businesses, however, could see an even higher spike if the budget passes. Which led Lapp to address the council earlier this week.

"There is an alarming trend to take businesses for granted and assume that the factories, shops and offices will always be there and that business can and will overcome the impacts of rising taxes and fees, and increased regulation," Lapp said. "Businesses have the option to do business in other communities, states and countries."