[Vision2020] City Taxes, again

[Bob Hoffmann]

At 04:42 PM 7/28/2003 -0700, John Danahy wrote:
>There has been a great deal of development in and around the city, why 
>hasn't this development resulted in sufficient increases in tax 
>revenues?  Are tax breaks being given to spur development?

John & Co.,

The misconception is that development increases revenues, decreasing the 
total tax burden.  Development generally increases expenditures, and the 
taxes generated are typically insufficient to cover the increase in 
municipal expenditures.  This eventually results in an overall increase in 
taxation.  New development means new roads, new sewers, new schools and 
fire departments, etc.  While there are more efficient modes of development 
(such as cluster housing) that use fewer roads, sewers, etc., developers 
frequently would rather increase infrastructure costs, because they pass 
these costs at a profit to the consumer.  And then they leave the 
infrastructure to the city to maintain.


Bob Hoffmann
820 S. Logan St.
Moscow, ID  83843

Tel: 208 883-0642