The Need for Commercial Growth

Updated 2/15/25

The vast majority of our Town’s revenue, 76%, comes from property taxes (the next largest source of revenue is State aid, which is shrinking annually). Right now, 86% of the Town’s property taxes come from residential property, and only 14% come from commercial and industrial property.  With the singular exception of the Pilgrim Power Station, that has remained static for a number of years. But power station revenue is now gone, and we have done nothing to replace it.

Many people look to the boom in residential housing and ask why taxes keep going up despite having more taxpayers. There are three reasons.

First, for many years Plymouth used its commercial tax revenue to keep property taxes artificially low.  At the same time, it deferred spending on infrastructure and  municipal facility maintenance, costs which we are now being forced to incur at much higher prices.  

Second, the cost of municipal services is increasing proportionally with the growth of our population.  But the cost to the Town to provide services to the average family in Plymouth is more than their tax bill.

Third, we are subject to more unfunded state mandates than ever before.  For example, even though the number of school age children in Plymouth has remained relatively constant in recent years, the cost of providing education, transportation, and manadated special services has increased without additional state aid to offset those costs.

Ideally, Plymouth could help defray these costs with additional commercial tax revenue, but realistically it would take a dramatic shift in business growth to actually offset municipal expenses.  That said, Plymouth does need to work to develop new business growth, again for three reasons.

First, Plymouth cannot afford to lose the commercial tax revenue it has been receiving, as that would only further increase the burden on residential taxpayers.  But that is a realistic possibility.  Fron the year 2000 onward, Plymouth became more heavily focused on retail stores as a means for commercial tax revenue.  But bricks and mortar stores are declining.  Plymouth needs new businesses to replace those we are losing.

Second, Plymouth needs to bring in businesses that provide living wage jobs for our residents.  69% of the jobs in Plymouth are held by non-residents.  In contrast, 50% of Plymouth's residents commute outside Plymouth to work, and 14% work from home.  This demonstrates that in the majority of circumstances in order to work in Plymouth you need to live elsewhere and in order to live in Plymouth you need to work elsewhere.  In 2000, a person making the Plymouth median income could afford to buy a home in Plymouth. Just four years later, that was no longer the case.  This makes it difficult for businesses to start or move here (as their workers can't afford to live here).

Third, Plymouth needs to encourage those businesses that provide year-round services for our residents.  Tourism (which does not afford living wage jobs) is traditionally seasonal, meaning that tourist-based businesses scale back or close during the off-season.  Plymouth needs businesses that operate year-round to support both their workers and the community.  Otherwise, Plymouth risks being a town populated by those who can afford to spend their winters elsewhere.

Plymouth is ideally situated to be the business epicenter of Southeast Massachusetts. We have the geographic location, the largest population, and existing growth areas. Our coastal access allows for increased scientific and aquaculture development. All of these factors would seem to make Plymouth the logical choice for anyone wanting to do business in the region. But somehow, Plymouth struggles to attract new commercial ventures, why?

A consistent refrain from those trying to bring businesses to Plymouth (including those who ultimately elected not to proceed) is that the Town makes the process too lengthy and unpredictable. Approvals from multiple committees are required, and consideration of applications are often delayed. The perception is that rather than encouraging business, the Town is putting up roadblocks. 

It’s time to reassess how Plymouth ‘does business with business’. We need to streamline the process, limiting the number of approvals needed from different groups and departments. We should also create a fast-track approach for businesses seeking to utilize existing, empty spaces. By making this a priority we can level residential property taxes and provide opportunity to our next generation of residents.