My C-Section Over Morning Coffee
March 12th, 2008 categories: Real Estate News
While many of us believe that it is gasoline that drives America, most of us working types are aware that coffee, more than most things, is the true source of what makes us tick. 
While enjoying my second cup this morning, the local newspaper’s Region Section grabbed my attention, reminding my why the term “Founding Fathers”, in describing those that founded this great country, is very suitable. The lead headline in the Region (C) section, “City Tax Hike Proposed”, reminded me of Ben Franklin’s timeless words, “Certainty? In this world nothing is certain but death and taxes.”
Of course, Fredericksburg and Spotsylvania county are suffering the same economic woes the surrounding counties and many other regions are during this economic downturn (OK – call it a recession if your must!). For the year, Fredericksburg’s sales tax revenues are 10.58 percent below what it had counted on for revenue. Due to the decrease in available funds, there have been hiring freeze on city jobs. To avoid a budget shortfall, the county has taken the same measures. Other surrounding counties are in a similar budget crunch. While King George and Caroline counties haven’t yet taken these measures, Stafford county has decided to hold off filling key positions. But, each is watching their revenues closely.
So, back to this morning’s proposed tax hike. Is it welcome news for property owners? Of course not. But what alternatives do our administrators and legislators have? Outside of an increase in sales tax, raising real estate taxes is the cash cow that pays the bills (and more importantly, the salaries!). But, it can also become the trump card used a bit too frequently at the expense of local property owners when it’s time to generate revenue.
The proposed 2009 City Budget includes:
- Recommended five cent increase in Real Estate tax rate, from 53 to 58 cents per $100 of value
- $300,000 home would mean a tax increase of $150 a year
Generating funds to pay the bills is a challenge that is never going away. Beginning in late 2005, the mortgage/housing crisis only made matters worse. In administering government, local or otherwise, thoughtful, sound decisionmaking is vital to projected economic growth. Proper planning is vital to success. Let’s make sure that as we consider the many options of where and what to develop and build, sustainability and quality of life are components that play an important role in the discussion. If forethought provides other reliable sources of revenue generation, perhaps then the property tax “trump card” won’t be needed to be played as often to feed the beast.
It’ll sure make my C-Section easier to deal with and that morning “Joe” all the more tasty!
