Salem has one of the highest Commercial/ Industrial Property Tax Rates in Massachusetts. Not only does this affect the Commercial/Industrial Property owners, it is factored into the rent structure of many small businesses.

Over the past decades housing prices have skyrocketed, and over that period Salem decided to take advantage of the state's tax classification law to implement a higher tax rate for commercial and individual property. Now, the trend in real estate prices has changed significantly, with housing prices declining, and commercial properties holding their own. Lowering the tax factor would reflect that change and would stabilize the tax burden for all classes of property in Salem.

What also happened in Salem is that over the past 10 years Salem's Commercial, Industrial and Private (CIP) property portion of real estate values went from 30% to 17%, and the Residential and Open Space (RO) portion went from 70% to 83%. The result being that with a smaller amount of taxable Commercial properties in Salem, the effect of the CIP tax shift on the individual property taxes decreased.

Keeping the local economy moving in the right direction in difficult times gives us a better chance of stabilizing or growing the overall commercial percentage. Existing businesses need to feel supported, new businesses need to feel welcome and see Salem's competitive advantages. This is the only way to achieve commercial growth.

Businesses always have a choice of where to (re) locate. Salem competes for business - both in terms of retaining existing business as well as attracting new business. The action plan currently being implemented based on the recommendations of the Seidman Retail Study emphasizes the importance of being competitive and pro-active. An equitable tax rate is one of the tools that will support the work of Salem Main Streets, the Salem Chamber of Commerce and the City Planning Department.

Salem has made positive strides moving forward. RCG's Derby Loft retail component has achieved 100% occupancy with the recent addition of Chula Mama - Hip Baby Gear, Rouge Cosmetics and Radiance Aveda Lifestyle Salon & Spa. Goldberg Properties has done a great job with the retail spaces on Front Street. And, the light industrial developments on Swampscott Road have been a success (Groom Construction, Jacquelines Cookies and Doyle Sailmakers are just a few of the companies that have re-located to Swampscott Road). However, another project, the redevelopment of the Salem Jail, has not yet moved forward.

Let's keep the momentum going. Make Salem an attractive place to work and live. Support smart growth and higher residential densities in downtown. Streamline the permit process. Let's make sure that the retail component of new developments underway or planned (such as the re-development of the Salem News property and the re-use of the CF Tompkins building) succeed.

Stabilizing the tax burden for all classes of property (dollar value) is a good start. To do so, the Commercial Tax Rate needs to be adjusted downwards to reflect the adjustment in property values. Keeping the same rate will put a huge, undue burden on small business and will make Salem less competitive versus surrounding towns and cities.

The Salem Chamber of Commerce has and will continue to promote business in Salem. And remember, we are not talking about abstract entities; we are talking about local businesses and business owners. These are men and women that provide jobs, purchase goods and services, fuel the economy and help create the quality of life we all enjoy in Salem. Please exercise good judgment… lower Salem's Commercial Tax Rate.