Giving away land without cost will perk the public interest. At least that’s the theory. Individuals have come to Beatrice, Neb., since 1862, when the Homestead Act first parceled out land to pioneer farmers. The United States of America was in a different place at that time, economically. Today, town officials have drawn up their own Homestead Act of 2010 within the hopes that giving away basically free land will generate real estate tax revenues to bolster the town’s money reserves. Recurring property tax is something Beatrice needs more than more baseball fields and parks, reports the New York Times.
Beatrice has inspired numerous small towns to follow
The Times indicates that this tax revenue move may be just what small town America needs. Quite possibly supposedly rich resort retirement towns like Boca Raton are feeling the pinch. Lawn maintenance is one of many costs that collective tax revenue on giveaway land would help allay. More residents would mean greater cost to extend services, but the hope is how the property tax revenue will make up for that.
Would a round of taxes for non-profits be in the offing?
In other spending budget drive activities, towns like Concord, Mass., and Manchester, N.H., are pondering going after the tax exempt status of their non-profits. Non-profits have lived in their tax shelters for some time. Considering that 15 percent of Concord is taken up by tax exempt structures, you will find numerous potential costs that could possibly be made up. Will the time come for tax-exempt organizations to serve their communities via tax contribution? Private schools, churches and numerous other organizations could come into question. It doesn’t take a New York Times to see how their tax monies could help communities.
Beatrice was the home of the original Homestead Act
Homesteading started in Beatrice in 1862, so it’s fitting that it should return. Clearly a figurehead is needed, if the National League of Cities’ recent findings are accurate. According to that organization, “Between now and 2012, America’s cities are likely to experience shortfalls totaling $ 55 billion to $ 85 billion”. Slumps in property tax, sales tax and less state support of smaller towns means that some drastic action may be necessary. The tax benefit is there if more individuals are brought in, and building new and improved homes would also raise property values.
Dollars and sense
Critics of the Homestead Act of 2010 and comparable ventures elsewhere question whether it should be within a city’s power to dole out public land to “any non-taxpaying outsider who asks”. But the more persuasive stance comes from one town mayor, who asked the Times, “What’s the value of a lot to us if it’s empty?” Harsh realities often require direct solutions.
nytimes.com/2010/07/26/us/26revenue.html?_r=2 and amp;hp
No comments:
Post a Comment