Date: Fri 11-Jun-1999

Publication: Bee

Author: STEVEB

Quick Words:

tax-deferral-Sonics-Materials

Full Text:

Tax Deferral Approved For Sonics & Materials

BY STEVE BIGHAM

The Board of Selectmen Monday approved a tax deferral for Sonics & Materials,

Inc of 53 Church Hill Road.

Pending approval by the Legislative Council next week, the company will

receive a savings on its taxes of 50 percent of the increased assessment for

two years. It equates to $3,900 a year for two years.

First Selectman Herb Rosenthal called it a small price to pay to have a good

growing community -- full of desirable businesses.

"We're not giving up tax money we were getting. This is additional money,

which we will partially defer for two years," Mr Rosenthal said.

The tax deferral decision had been delayed as town officials waited for the

completion of the company's new construction and appraisal.

Mr Rosenthal called it a win-win for the town. However, the first selectman is

not enthusiastic about proposals to give tax incentives to businesses -- at

least not the one created nearly three years ago. That plan was drawn up by

the Economic Development Commission (EDC) under then first selectman Bob

Cascella. Last year, however, Herb Rosenthal, Joe Bojnowski and Bill Brimmer

voted to suspend the program, saying it lacked guidance and caused confusion.

"There is no objective criteria for the first selectman to use in determining

which companies receive tax breaks and which don't. If you recommend one and

not the other, there's nothing to hang your hat on as to why," Mr Rosenthal

said.

Both Sonics & Materials and Neumade Products were granted tax deferrals

because they had applied before the suspension was made. New businesses will

not be eligible until the EDC comes up with a new plan.