ATTLEBORO - City businesses could get a tax break for the first time in nearly three decades if the full council goes along with a budget committee vote to lower the percentage of the city's dual rate assessed to businesses.

Committee members voted 2-1 Tuesday to lower the tax classification factor from 1.50 to 1.45, which would lessen this year's tax increase on the average business from $1,300 to about $800.

The average residential taxpayer would see an increase of about $126. If the 1.50 factor was left in place the residential tax increase would be about $89.

The move came with strong support of budget committee Chairman Brian Kirby, who said the city has taken action on a number of fronts to encourage business, but needs to address taxation.

"We haven't finished the job," he said. "We've fixed other things, but we haven't fixed this." He agreed with Chief Assessor Stan Nacewicz that the city's dual rate, which taxes business 50 percent higher than a single rate would, helps drives businesses out of town. The dual rate was established in 1982.

Nacewicz said big companies and small sole proprietorships are leaving the city at an alarming rate, which is pushing more of the tax burden onto homeowners. He said nine companies and 107 sole proprietorships left last year.

Reducing the burden on business is the first step in keeping business, attracting more business and stabilizing the rate of increase on both homeowners and business owners.

"It's time to stop the bleeding," Kirby said. "We've been taxing businesses unfairly."

Committee member Bill Bergevine voted with Kirby for the 1.45 rate but, Bill Bowles opposed it.

Bowles discounts the argument that taxes are key to the loss of business. He puts more of the blame on a lack of space and a deep recession.

"We don't have a clear indication we're losing business because we're at one-point-five," he said.

Bowles said he doesn't want to add to bills for homeowners in the current tough times.

"People out there are struggling, and twenty or thirty dollars are going to mean something to them," he said.

A vote is expected next week.