Release: Yoon Calls for Clear Reporting of Development Subsidies
Submits Measure for Online Reporting of Business Assistance Programs

January 28, 2009

BOSTON - City Councilor-at-Large Sam Yoon submitted today a measure to require City Hall to make visible to the public all tax subsidies to businesses. The ordinance would force the city to gather records of the city’s business assistance programs, currently available by request only from each city agency, and publish the list on the city’s Web site.

Yoon says the measure would let residents see if City Hall’s spending matches their priorities.

“In this economic climate, we need to allocate the city’s business subsidies more openly and efficiently,” said Yoon. “These subsidies can help our communities grow, but they represent real dollars that affect our current and future property taxes. Allowing the public to see all the city’s development incentives would add another check to our budgeting process.”

The city currently offers a variety of business assistance programs like property tax waivers, loan programs, tax deferments, and grants. But there is no one department in the city that processes these programs. Under the ordinance, the city’s Office of Business Development would have to create a publicly accessible and searchable site with detailed information about the purpose and performance of each subsidy.

Yoon believes the centralized reporting will help the city match tax subsidies with business performance.

“Many businesses cannot afford to develop without financial assistance from Boston, and Boston cannot afford stalled development projects,” said Yoon. “But we have to make sure businesses provide a good return on those tax breaks. This measure will let us see the city’s written agreements with each entity and find out the revenue lost and the benefits promised.”

Yoon will submit the measure at the City Council’s meeting on Wednesday, January 28, 2009.