Councilor Angela McCalla was taken aback when her motion to continue the city’s Ad Hoc Tax Relief Committee failed to receive a second at the Jan. 25 Newport City Council meeting.
McCalla said she was complemented by fellow councilors when raising the issue in the past and was expecting support when bringing the matter forward for a vote. However, the resolution died on the floor.
“This still is a very important policy decision, where the council alone has to render a final decision,” she said. “I’m not sure what happened. The committee would have added more perspective and value. As policymakers, we want to make sure we’re understanding things from many different dimensions, from all perspectives, in order to render a decision that’s best for the community.”
The committee, temporary by nature, was formed by the previous council in 2021 with a charge to “provide tax relief for year-round residents” and “research tax structures that promote residency in the city.” It was comprised of five members of the city administration and five members of the public appointed by the council.
Its recommendation to divide the residential tax classification into two categories and tax them separately was passed by council vote in November, a move that required approval from the Rhode Island General Assembly.
The city’s subsequent tax relief program, intended to save yearround residents money on annual property taxes, is now being rolled out. In order to qualify, residents must apply to the city. McCalla said there are many significant unknowns with the initiative, such as how many people will apply and the “magic number” to maximize savings for year-round residents. She said the committee should be reconvened to analyze that information and provide feedback to the council as the program concludes its inaugural year.
“Both points are really important, because if you don’t have enough people enrolling, that can become a barrier,” she said. “We have to think about the magic number that would make the big- gest impact. We don’t want this to become neutral.”
During an update to the council on the program’s rollout, city manager Joe Nicholson said the city reviewed 1,270 applications so far, with a number of additional applications pending review by the finance department. He said he expects the number of applications to increase near the deadline of March 15.
In a phone call with Newport This Week, Councilor Jeanne-Marie Napolitano said the committee’s charge was fulfilled when the ordinance was passed and the program was created. She said the committee, like other ad hoc committees, should dissolve once its purpose is completed. Napolitano said she spoke with councilors about the issue and pointed to property taxes’ significant impact on the budget, saying the city could not risk crossing a threshold wherein it did not have the funds to operate.
According to Napolitano, she was prepared to share her thoughts at the meeting and was surprised when the resolution did not receive a second and expired without discussion.
In an email, Mayor Xay Khamsyvoravong said he did not see a route to passage for the resolution when it failed to receive a second.
“It takes four councilors to vote for an item in order for it to pass,” he said. “Seconding, to move the matter for discussion, would have been for the sole purpose of debating rather than advancing a policy.
“The city is not moved forward when the council debates solely for the purpose of arguing. The council is not a debate club; it’s a public body tasked with helping Newport move forward, and I’m focused on keeping us on that track.”
Councilor David Carlin, who was a co-sponsor of the resolution, said he appreciated the committee’s work, but matters of such significance should be decided by a full council. Councilor Mark Aramli was absent from the meeting.
“I believe that a weighty matter like this deserves to have every councilor present and given the opportunity to express concerns, ask questions or express support,” Carlin said. “It deserves having everybody there.”
Carlin said he co-sponsored the motion out of “professional courtesy.”
“We’re a council that should be, and is attempting to, move the city forward in a positive direction,” he said. “We’re not a council that is interested in causing any friction among members or the public. We want to make sure everyone has their right to ask the questions.”
Carlin said there were about two dozen instances in his time as a member of the School Committee when his motions did not receive a second.
“I’ve been there many times and it doesn’t feel good,” he said.
McCalla said the process should have been more transparent. “I think it’s unfortunate that politicians will run on wanting transparency and will make statements about wanting the community to be able to participate in city government, and I think this is yet again another example of not following through on those commitments,” she said.
The committee’s proposal to divide the residential classification resulted in two separate tax rates for property owners in Newport; those who can prove residency in the city for most of the year and those who cannot. The program is designed to provide uniform savings to all residents who qualify, meaning approved property owners will all save the same amount of money off quarterly tax bills. By comparison, properties that do not qualify will be taxed by typical method (a percentage of the home’s assessed value) but at an increased rate, to make up for the savings from the qualifying properties. This is intended to ensure the highest-assessed properties not owned by year-round residents are taxed the highest.
“That makes the savings more meaningful to people in a lower-income bracket, because if the savings proceeded as a percentage of the home value that qualifies, the properties with the highest-assessed values would benefit the most,” committee member Penny Billington Hunt told NTW in December. “I think that’s a very important feature of the program.”
Properties that are rented on a yearly basis would also qualify under the ordinance. The city’s commercial property tax rate is not affected by the program.
