Gazette – bucking commercial wisdom
My column in this week’s Middleboro Gazette talks about the conventional wisdom that more commercial development is always good.
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Much of what Middleboro and most other cities and towns do is geared toward attracting more commercial development – which in theory helps pay for services and keeps property taxes low. But does it really do that?
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Discuss.
Categories: Middleboro
Nobody puts it all together!
Think of the budget. Generally speaking, about 50% of every town budget is school related. Therefore, 50% of all tax dollars go to the schools.
If residential properties are assessed at 100% “full and fair cash value”, 50% of their tax dollars go to the schools. At $7,000 a pupil, the typical single family home with two kids in school doesn’t cover the school costs. Someone else has to take up the slack. More kids, more slack.
The theory is; When a commercial property pays it’s fair share of taxes the schools get a “boost” because the commercial property does not have any kids in the schools. These properties “take up the slack”. The officials of this town GIVE UP THIS BOOST, either by convincing us that it’s “good for the town”, OR by improper assessments, OR by granting abatements. They doom the town, eventually. But hey, they’ll be retired or out of office. Let someone else worry about it.
If commercial properties are assessed at, say, 60% of their “full and fair cash value”, only 10% of their tax bill is available to the school. These properties barely cover “the rest of town government”.
Not all commercial properties are “getting the break”. They’re not all the “fortunate ones”.
NOW, how many TIFs are out there? They contribute even LESS to the general fund. This assumes the assessors are making the tif exemption calculations correctly. If they’re making mistakes, the property taxpayer is paying even less.
My personal feeling is that it actually COSTS the town money to have some of these “deals” and “miscalculations” in town.
OH! Before I forget. Did I mention ABATEMENTS????
Has IDEX got a TIF set up yet? Let’s see, a 40% tif on top of a 50% assessment. We owe them money. I’ll write my check out to them tonight. (this last statement intentionally hyperbolic, to get attention)
“Full and Fair” valuation for all taxpayers! The Schools would be happy. The Police would be happy. The Fire Department would be happy. The Highway Department would be happy. I would be happy. Many, many other taxpayers, residential and commercial would be happy. I know a few taxpayers that wouldn’t be happy.
Goodnight Irene.