Worcester Business Journal

wbjournal.com | June 12, 2017 | Worcester Business Journal 5 People. Places. Product. Photographic images for advertising, public relations, graphic and corporate communications groups . See the difference. 165 Holly Lane • Holliston, MA 01746 Phone: 774.248.4050 • www.ronbouleyphoto.com R O N B O U L E Y P H O T O G R A P H Y B R I E F S Worcester tax policies hurt economic development The Worcester Regional Research Bureau in May outlined a formula it said could move Worcester towards a single-tax rate, rather than a lower rate for residential property and a higher rate for businesses. WRRB recommended either a unilateral transition, which would freeze the business tax levy, resulting in a gradual shift back to a single rate as the residential tax increases, or a bilateral transition, which would establish a timeline for a single rate. When polled, WBJ readers overwhelming said the city's tax policies impede their businesses development. F L A S H P O L L eClinicalWorks to pay $155M in settlement Westborough electronic health records software vendor eClinicalWorks will pay $155 million to settle a lawsuit alleging the company misrepresented its software's capabilities and paid $392,000 in kickbacks. eClinicalWorks and three of its founders, including CEO Girish Navani, are responsible for paying the settle- ment, according to U.S. Department of Justice. The company denied any wrongdoing. The federal government alleged eClinicalWorks falsely obtained a gov- ernment certification for its electronic health records software so it could be sold to healthcare providers for a lower cost through federal subsidies. The case represents the first time the government has held an electronic health records vendor accountable for failure to meet federal standards. Trump budget would cut federal MEP funds The Worcester-based Massachusetts Manufacturing Extension Partnership and other MEP centers across the coun- try will lose their federal funding if President Donald Trump's budget pro- Continued on next page Equal Housing Lender I Member FDIC | Member DIF Congratulations to Commit Fitness, Leominster From One Family To Another North of Ordinary BankMainStreet.com | 508-481-8300 Winner of Worcester Business Journal's 2017 Family Business Awards (New Business) How has Worcester's dual-tax rate affected your business? We have to be extra conscious of our overhead costs because of the high tax rate 26% We have avoided Worcester as a site for possible expansion or relocation 56% COMMENTS: "We are in Shrewsbury with a very attractive tax base vs. Worcester." "If given the proper opportunity, we would vacate Worcester in favor of a tax-friendly community." "Thankfully, I am based outside Worcester." It doesn't impact us directly 14% Production workers at Spencer manufacturer FLEXcon, which has used MassMEP programming 4% We have taken advantage of tax-increment financing to reduce our tax burden.

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