HAVERHILL — Homeowners won a slight break last night.
The City Council, reversing its stance of two weeks ago, ended up unanimously going along with Mayor James Fiorentini's request to keep the tax classification formula as is.
This means the average homeowner will pay an additional $71 in real estate taxes. If the councilors had overridden the mayor's veto of the break they voted to give businesses two weeks ago, the increase would have been $106 for residential taxpayers.
The council voted 5-3 two weeks ago against the mayor's plan.
"The council did the right thing," Fiorentini said immediately after the vote.
Businesses received some help last night. The council unanimously backed Fiorentini's recommendation to increase the personal property tax exemption from $2,500 to $3,500 for local businesses.
Fiorentini said when the council approved the $2,500 exemption, 700 businesses didn't have to pay any personal property tax. The higher exemption will give another 200 businesses that same relief, he said.
Six votes were needed to kill Fiorentini's veto. It soon became obvious, however, that those votes weren't there last night.
Fiorentini noted this was the first time as mayor he went before the council on a classification matter. His plea could be summed up with the phrase, "people are hurting." Unemployment in Haverhill has hit 6 percent, he said, and 200 people could not pay their water bills. He also noted foreclosures are on the rise.
"This is not the time to raise taxes on the backs of working families," said City Councilor James Donahue.
Councilor Mary Ellen Daly O'Brien said she was pleased Fiorentini was making some moves to help small businesses.
"It's a woman's prerogative to change her mind," she said of her decision to support the mayor. Two weeks ago, she was among the five who voted to give businesses a slight tax break.
Councilor David Hall made the motion to keep the classification factor at 1.50, meaning the tax rate on businesses is roughly 50 percent more than the rate homeowners pay. Two week ago, the council supported reducing the classification factor to 1.45.
Hall said the economy is the worst it's been in 80 years, with people who were making $80,000 a year working for companies like Fidelity Investments suddenly jobless.
"I could cry," he said.
James Jajuga, president of the Greater Haverhill Chamber of Commerce, made a plea on behalf of giving businesses a break. He pointed out the chamber sponsors the Italian Fest, the Christmas Stroll and Kidsfest, events that "enhance the city of Haverhill."
"Where did the money (to fund these events) come from?" Jajuga asked. "We are not some nameless, faceless group."
With a factor of 1.45, the average business would have paid another $750 in taxes. Last night's vote means they'll pay another $1,100.
