Could Buying Local Lead to Lower Property Taxes?

Could Mansfield soon reward residents for shopping locally with lower property taxes? It could happen according to a presentation to the selectmen by Carmine De Falco of Fincredt.

Speaking to the board, Di Falco proposed a system that rewards Mansfield residents for shopping in Mansfield.

According to Di Falco, the system would allow residents to shop at participating stores in Mansfield and collect rewards that would go towards paying their property tax. The rewards would be collected by using a $1 swipe card similar to a credit card or a rewards card used by many businesses.

The credit accumulated through the card would be transferred to the town and applied as a tax credit on the cardholder’s next property tax bill.

Participating stores would pay $10 a month to take part in the program along with a $160 fee for the swipe machine to process the rewards cards. The store would then set what percentage of the sale would go towards the buyer’s rewards. Businesses would not be locked in and can leave the rewards program at any time.

“Townships have been advocating for shop local for many years but they did not give back to the community. It’s a way not to lose revenue to other townships because people are getting something back,” Di Falco said.

Currently, Fincredit has run the program in six towns in New Jersey and hope to be in 10-15 more this year. They are also talking to 30-40 more towns and cities in addition to Mansfield.

While intrigued by the idea, the selectmen did wonder if local businesses could afford to participate in the rewards program or if there is even an interest. It was suggested that it would be best to talk to local business owners and the Tri-town Chamber of Commerce to see if there are businesses interested in the program.

In addition, Chairman Olivier Kozlowski wondered if the credit could apply to the electric bill instead of the property tax. In towns using the rewards system, homeowners get a tax credit but a renter would receive a cash rebate. A credit on the electric bill would make sure everyone got the same result from their rewards. Di Falco said his company is not equipped to do that at the moment but they could try to accommodate the recommendation.

Town Manager Bill Ross also said he would check with the Massachusetts Department of Revenue to make sure the proposal has their approval.