Worcester’s Dual Tax Rate and the Supermarket Debate: What’s Really Driving Business Away?

By-Hank Stolz

Photo-Radio Worcester

WORCESTER, MA-The conversation opened with a discussion of a recent GBH report by Sam Turken highlighting the scarcity of supermarkets in Worcester. The panel quickly connected the issue to the city’s dual tax rate and its impact on commercial investment.

Mark Henderson of the016.com argued that Worcester’s tax structure, which favors residential property owners while placing a heavier burden on commercial properties, makes the city less attractive to businesses like supermarkets. He said companies can often find more favorable financial conditions in surrounding towns with lower commercial tax rates. Henderson suggested that residents who consistently push for the lowest possible residential tax rate may be unintentionally contributing to the lack of commercial services within the city.

Tom Marino of ThisWeekInWorcester.com pushed back on the idea that taxes alone are to blame. While acknowledging that tax policy plays a role, Marino argued it is only one factor among many. He pointed to the broader economic health of Worcester residents, including income levels and purchasing power, as critical considerations for retailers deciding where to locate. Marino suggested that instead of simply shifting the tax burden, the city council should explore alternative approaches, including the possibility of a land value tax, as a way to encourage development without increasing pressure on homeowners.

The discussion widened further when a caller known as “Gary in the car” joined the conversation. Gary, along with both panelists, noted that corporate decisions about store closures are often driven by national or regional performance metrics. Companies may shut down locations that are still profitable if they are considered “underperforming” relative to other markets, a strategy aimed at improving overall corporate results rather than responding to local conditions alone.

The exchange underscored the complexity of Worcester’s business challenges. While tax policy remains a key piece of the puzzle, the panel agreed that economic conditions, corporate strategy, and long-term planning all play significant roles in shaping which businesses choose to stay, leave, or never arrive in the city.