Legislative Letters The Chamber continues to work on several key legislative initiatives. The followiing are copies of the Chamber's recent legislative letters or written testimony and to help the Chamber advocate for a pro-business legislative agenda: January 13, 2004 RE: An Act Relative to Property Tax Classification in Cities and Towns Dear Legislator: On behalf of over thirty thousand businesses, of all sizes, represented by the thirty-four undersigned Chambers of Commerce, we urge you to oppose any efforts to increase the property tax burden on businesses from the current 175%. We feel strongly that this legislation represents poor public policy. It does nothing to raise additional revenue and imperils the entire state's economic recovery, competitive edge, and overall business climate. This legislation passes the costs along overwhelmingly to businesses, especially small businesses that make up 85% of the state's employers. During these challenging economic times any new public policy should be designed to encourage and strengthen small businesses, proven to be the engine of economic growth and job creation. This proposal is a shortsighted response to a cyclical decline in business property values and a continual rise in residential values. With a third year of double digit rate increases in health care premiums and an additional average increase of over two hundred dollars per employee in unemployment taxes, how far can we push the business community? Cumulatively, these costs prolong the current economic downturn, and add to the estimated 160,000 Massachusetts jobs that have been lost over the past two years. Instead of raising the property tax burden on businesses, we should be focusing in the short run on providing relief only to those residents who really need it. Even if the current commercial tax rate of 175% is maintained in Boston, residents will still pay about the same or less taxes than most other surrounding communities. With this fact in mind, why is any shift in current tax rates being considered? Our mission should be promoting a competitive business climate, strengthening existing businesses and fostering job creation in Boston and throughout the state. Fully doubling the tax burden on businesses from 175% to 200% sends the wrong message at the wrong time to existing and prospective Massachusetts businesses, which provide valuable jobs to state residents. We do not need to encourage North Carolina and other states to continue their active, aggressive and increasingly convincing recruitment of our businesses, especially in the biotech industry. Therefore, we urge you to oppose any effort to raise the classification limit further from its current 175%. We hope you agree there are more sustainable ways of assessing taxes and conducting business in Massachusetts. Sincerely, Christopher B. Cooney, President & CEO
Metro South Chamber of Commerce
Chair, MACCE Tax Classification Taskforce Back to top of page
Statement
of the
Metro South Chamber of Commerce ON: Legislation to Increase Tax Classification Rate from 175% to 200% TO: Special Legislative Tax Policy Commission BY: Christopher B. Cooney, President & CEO DATE: December 30, 2003 The Metro South Chamber of Commerce is
the region's oldest and leading economic development
and business advocacy organization. The Chamber serves
1,000 member businesses in the communities of
Abington, Avon, Bridgewater, Brockton, Canton, East Bridgewater,
Easton, Halifax, Hanover, Hanson, Holbrook,
Norwell, Randolph, Rockland, Sharon, Stoughton,
West Bridgewater, and Whitman. Testimony of Christopher B. Cooney,
President & CEO
Metro South Chamber of Commerce and
Massachusetts Association of Chamber of Commerce Executives Before the Special Legislative Property Tax Policy Commission Tuesday, December 30, 2003
10:00 A.M. Chair Casey and Creem, members of the commission, I would like to thank you for the opportunity to testify today on proposed changes to our state's property tax policies. My name is Christopher B. Cooney and I am President and CEO of the Metro South Chamber of Commerce. The Metro South Chamber of Commerce is a private, non-profit business association based in the City of Brockton. The Chamber serves 1,000 member businesses of all sizes from virtually all industries in eighteen communities south of Boston. The chamber supports and promotes the local business community through leadership in public advocacy, education, networking, information and community development. Let me also note that I serve as Chairman of MACCE, the Massachusetts Association of Chamber of Commerce Executives, and I am also here today representing 23 chambers throughout the state that have taken a similar position on this issue. These chambers combined represent over 23,000 members. With me here today are Peter Kortright and Karl Hetzler from the Fall River Chamber, Ted Welte of the Metro West Chamber, Jim Mathes from the New Bedford Area Chamber, David Hall from the Peabody Chamber and Mark Love, president of the Worcester Regional Chamber of Commerce. Let me begin by saying that the Metro South Chamber of Commerce shares the concerns that many have expressed about the negative impact to residents from spiraling property tax bills. We are all well aware that this problem stems from a continuing housing shortage and a cyclical decline in business property values. The lack of housing in the Commonwealth has put residential housing at a premium, driving prices ever higher and has forced resident's tax bills to record levels, despite cuts in property tax rates locally. Meanwhile the value of commercial property has declined because of the recession and joblessness. As you know, currently under the 1978 Classification Law, Massachusetts cities and towns with split tax rates for businesses and homeowners can impose a tax rate on businesses that equals 175% of what the rate would be if there were a single rate for homeowners and businesses. The law gives those cities and towns the flexibility to adjust the rate and shift the burden to businesses, as long as they stay under the 175% ceiling. This legislation proposes increasing the limit to 200%, allowing cities and towns to place a greater burden on businesses to help alleviate the rising tax bills residents' face. While sharing the concerns over rising tax bills for residents, we feel strongly that shifting the tax burden further to businesses is not the answer to this crisis. This legislation represents poor public policy which if enacted would imperil the entire state's economic recovery, competitive edge, and overall business climate. First, this proposal does not raise any additional revenue for local communities. Nor does it create any additional housing or resolve the problem next year or the year after. It only shifts the tax burden from residents to businesses, fully doubling the property tax burden for businesses. According to the Boston Municipal Research Bureau, Businesses in Boston already pay nearly four times more than homes similarly valued. Secondly, this legislation passes the costs along overwhelmingly to businesses, especially small businesses that make up 85% of the state's employers - and have proven to be the engine of economic growth and job creation. These businesses are already facing this coming year, a 65% increase in their unemployment insurance rates along with a third year of double digit rate increases to their employees health insurance premiums. Cumulatively, these costs prolong the economic downturn, and add to the estimated 160,000 Massachusetts jobs that have been lost over the past two years. Fully doubling the tax burden on businesses from 175% to 200% sends the wrong message at the wrong time to existing and prospective Massachusetts businesses, which provide valuable jobs to state residents. We do not need to encourage North Carolina, California, New Hampshire, and other states that we are competing with to continue their active, aggressive and increasingly convincing recruitment of our businesses, especially in the biotech industry. Instead of raising the property tax burden on businesses, we should be focusing in the short run on providing relief only to those residents who really need it and in the long run of creating more affordable housing. Our mission should be promoting a competitive business climate, strengthening existing businesses and fostering job creation. Therefore, we recommend that this commission oppose any effort to raise the classification limit to 200%. We hope you agree that there are more sustainable ways of assessing taxes and conducting business in Massachusetts. The Metro South Chamber of Commerce and the over 23,000 businesses represented by MACCE appreciates the opportunity to offer testimony on this very important economic development issue. I and my colleagues are happy to respond to any questions you may have. Thank you. Christopher B. Cooney Back to top of page
November 3, 2003 The Honorable Cynthia Stone Creem
Chairperson, Senate Committee on Taxation
State House, Room 416-B
Boston, MA 02133 RE: House Bill 1980, Property Classification Dear Chairperson Creem: On behalf of the nearly one thousand members of the Metro South Chamber of Commerce, we are writing to urge you to oppose House Bill 1980, which would increase the tax classification limit from 175% to 200%. As you know, currently under the 1978 Classification Law, Massachusetts cities and towns with split tax rates for businesses and homeowners can impose a tax rate on businesses that equals 175% of what the rate would be if there were a single rate for homeowners and businesses. The law gives those cities and towns the flexibility to adjust the rate and shift the burden to businesses, as long as they stay under the 175% ceiling. House Bill 1980 proposes increasing the limit to 200%, allowing cities and towns to place a greater burden on businesses. The Metro South Chamber of Commerce feels strongly that this legislation represents poor public policy which if enacted would imperil the entire state's economic recovery, competitive edge, and overall business climate. This proposal is simply a shortsighted response to a cyclical decline in business property values and a continual rise in residential values. House bill 1980 passes the costs along overwhelmingly to small businesses with under 20 employees, since these businesses make up 85% of the state's employers and it endangers economic development as well as job creation efforts, during a time in which the need for tax base expansion is paramount. Passage of House Bill 1980 would send the wrong message at the wrong time to existing and prospective Massachusetts businesses which provide valuable jobs to state residents. Therefore, we respectfully ask that you oppose House Bill 1980 and/or any floor amendments to raise the classification limit to 200% that may be taken up during legislative deliberations. We appreciate your consideration of our views on this issue. Please feel free to call Roy Nascimento at extension 225 at the Chamber if we can be of assistance on this or any other issues. Very Truly Yours, James Blake
Chair of the Board Reinald Ledoux
Vice Chair of Government Affairs Christopher B. Cooney
President and CEO Back to top of page
November 4, 2003 The Honorable John A. Hart, Jr.
Chairman, Senate Commerce & Labor Committee
State House, Room 309
Boston, MA 02133 RE: House Bill 3807, Unemployment Insurance Reform Dear Chairman Hart: On behalf of the nearly one thousand members of the Metro South Chamber of Commerce, we are writing to you to request that you support House Bill 3807, sponsored by Governor Mitt Romney, which would comprehensively reform the unemployment insurance system (UI). As you know, the business community in Massachusetts has advocated for many years for reforms to the UI system. Costs incurred through the UI system represent a substantial business expense for employers. We have been appreciative of your year-end efforts in preventing large increases to the UI tax rates in the past by freezing the rates. We are once again looking to you to provide leadership on this issue and ask that you support House Bill 3807, which would replenish the UI trust fund and provide much needed reform of the system. If the legislature does not act, the current UI trust fund will be insolvent by the beginning of 2004. Because the year's premium is set annually on the percentage of the trust fund balance, the average business would see rates increase by 75%, and some as much as 157%. This would be a substantial burden for many of our members, who are already struggling with dramatic annual increases in health insurance premiums and the economic downturn. Specifically, the Metro South Chamber of Commerce is supporting the following key reforms included in the legislation filed by Governor Romney: - Modification of the experience-rating table to require companies with negative ratings (as a result of frequent use of the UI system) to pay more while employers with positive ratings pay less.
- Narrowing the ratios that trigger annual schedule changes to make the rate schedules more responsive to changes in the trust fund balance and eliminate the need for annual legislative intervention on rates.
- Expanding from 15 to 20 the number of weeks of work required for eligibility for UI claims.
- Improving the ability of the Division of Employment and Training (DET) to issue fraud penalties.
- Making additional collection remedies available to DET to recovering erroneous payments.
- Professionalizing the appointment process for Board of Review members.
- Reducing the benefits duration from 30 weeks to 26 (Which would put us in-line with the other 49 states).
We urge you to act now to pass a balanced bill that includes significant benefit and rate structure reforms - not just rate increases. We appreciate your consideration of our views on this issue. Please feel free to contact us at the Chamber if we can be of assistance on this or any other issues. Very Truly Yours, James Blake
Chair of the Board Reinald Ledoux
Vice Chair of Government Affairs Christopher B. Cooney
President and CEO Back to top of page
August 18, 2003 The Honorable Michael K. Powell
Chairman
Federal Communications Commission
445 12th Street, SW
Washington, D.C. 20554 RE: Docket # 02-278 Dear Chairman Powell: The Metro South Chamber of Commerce represents over nine hundred businesses within eighteen communities south of Boston, Massachusetts. Our mission is to serve the interests of member businesses while providing community leadership to ensure the economic advancement of the Metro South region and the Commonwealth of Massachusetts. We are writing to you to strongly urge you to reconsider the rules governing unsolicited facsimile advertisements included in the Report and Order amending the regulations that implement the Telephone Consumer Protection Act of 1991 (TCPA). Doing away with the "established business relationship" provision will create a significant economic and labor-intensive burden for our chamber of commerce and for many of our members. While the proposed FCC rule changes may be suitable for residential telephone numbers that the new "do not call registry" provides, they are certainly not acceptable for facsimile communications from the chamber to our members or from our members' to their customers. The Metro South Chamber of Commerce relies on faxes as a prime source of communication to meet the needs of our membership. Membership notices, renewals, promotions for upcoming meetings and seminars, or solicitations to sponsor a chamber activity or event would all be prohibited under the revised regulation. Many of our members, who are primarily small and medium size businesses, would also be severely impacted, since they would also be prohibited from faxing information to their existing and prospective customers. These proposed FCC rules changes are a prime example of an idea where the disadvantages and unintended consequences far outweigh the benefits. These regulations will add to the economic burden of running a small business by increasing paperwork requirements and encouraging frivolous lawsuits against unsuspecting small business owners. We urge you the FCC to reconsider the rules governing unsolicited facsimile advertisements. Thank you for your consideration of our views on this issue. Please feel free to call us at (508) 586-0500 extension 223 if we can be of assistance on this or any other issues. Very Truly Yours, Christopher B. Cooney
President and CEO Roy M. Nascimento
Vice President cc: Metro South Congressional Delegation Back to top of page
June 29, 2003 The Honorable Therese Murray
Chair, Senate Committee on Ways and Means
State House, Room 212
Boston, MA 02133 RE: Fiscal 2004 State Budget, Line Item 7003-0701 Dear Senator Murray, On behalf of the 900 members of the Metro South Chamber of Commerce, I am writing to urge you to support the continued funding of the Massachusetts Workforce Board Association and the local Workforce Investment Boards (WIBs) as included in the FY 2004 House Budget under line item 7003-0701. Our experience with our local workforce board, the Brockton Area Workforce Investment Board (BAWIB), has been extremely positive. BAWIB has assisted many businesses in the region with their recruitment, retention, and training challenges. The board has been instrumental in establishing industry clusters in health care, manufacturing, and education using an employer roundtable model. BAWIB is composed of many private sector leaders who willingly volunteer their time to help their communities. The board has been nationally recognized for its work in building public/private partnerships, and most recently presented its work at a national conference on workforce issues in Washington D.C. I urge you to support the continued funding of local Workforce Investment Boards. Your support of the workforce boards will help sustain these important efforts and continue the significant leadership role by the private sector in workforce development. I appreciate your consideration of our views on this issue. Please feel free to call me at (508) 586-0500 extension 223 or Roy Nascimento, vice president at extension 225 at the Chamber if we can be of assistance on this or any other issues. Very Truly Yours, Christopher B. Cooney
President and CEO cc: Metro South Legislative Delegation Back to top of page
May 15, 2003 The Honorable Guy Glodis
Senate Chairman, Joint Committee on Insurance
State House, Room 413B
Boston, MA 02133 RE: House Bill 1699, An Act Relative to Small Group Insurance Dear Chairman Glodis: On behalf of the 900 members of the Metro South Chamber of Commerce, we are writing to urge you to pass House Bill 1699, An Act Relative to Small Business Insurance, sponsored by Representative Ronald Mariano. Health care is a major concern to the Chamber, both in terms of access and cost containment. Many of our members, who are primarily small businesses, are facing substantially higher health care insurance costs. Premiums for many of our members have increased annually by 20% or more. If enacted, House Bill 1699 would amend Section 1 of MGL Chapter 176J to allow chambers of commerce, as well as trade and professional associations the ability to pool members and their member's employees together for the purpose of acquiring medical health insurance. The law currently forces small businesses to acquire medical health insurance on an individual, per business basis. Therefore, a small business with 2 or 3 insured employees, which belongs to an association or chamber of commerce, cannot be pooled with other members of that association or chamber of commerce to form a larger group, which will inherently allow for a more diverse health care product with greater options, coverage, and competitive premiums. Your support for this legislation would reinforce the message that the Legislature is committed to expanding health care in the Commonwealth and dealing with the dramatic rising costs of health care. The bill being proposed would allow the member of the association (retired or not), their staffs and families a greater variety of plan choices at large group prices. The rising cost of health insurance is making for many difficult decisions for small business owners on whether or not to even offer insurance to their employees. Please support passage of House Bill 1699 and help small businesses in the Commonwealth of Massachusetts by providing access to a greater variety of health plans at more affordable rates. We appreciate your consideration of our views on this issue. Please feel free to call Christopher Cooney at (508) 586-0500 extension 223 or Roy Nascimento at extension 225 at the Chamber if we can be of assistance on this or any other issues. Very Truly Yours, James Blake
Chair of the Board Reinald Ledoux
Vice Chair of Government Affairs Christopher B. Cooney
President and CEO Back to top of page
May 22, 2003 Water Resources Commission
Attn: Michele Drury, DEM, Office of Water Resources
251 Causeway Street, Suite 700
Boston, MA 02114 RE: Aquaria Water, LLC Interbasin Transfer Proposal Dear Members of the Water Resources Commission: On behalf of the 900 members of the Metro South Chamber of Commerce, we are writing to urge you to support the Aquaria Water, LLC Interbasin Transfer Proposal. The region's water supply is a major concern to the Chamber as it impacts community growth, business retention, and quality of life for our communities. The region has struggled with water supply problems for over twenty years and the Chamber has long promoted conservation efforts and the exploration of alternative water supplies. The proposal for a desalinization plant developed by Aquaria Water, LLC represents a privately funded and environmentally acceptable solution to the region's water supply problems. This innovative proposal offers the region the best opportunity to have a new, environmentally friendly source of water, while protecting our existing water resources. Your support for this proposal would reinforce the message that the Commonwealth of Massachusetts is committed to expanding water resources in the Commonwealth through innovative methods, while protecting our existing natural resources. Please support the Aquaria Water, LLC Interbasin Transfer Proposal and help communities in the Commonwealth of Massachusetts by providing access to a new source of water. We appreciate your consideration of our views on this issue. Please feel free to call Christopher Cooney at (508) 586-0500 extension 223 or Roy Nascimento at extension 225 at the Chamber if we can be of assistance on this or any other issues. Very Truly Yours, James Blake
Chair of the Board Reinald Ledoux
Vice Chair of Government Affairs Christopher B. Cooney
President and CEO Back to top of page | 
