[Vision2020] City Taxes, again

[Donovan Arnold]

I can see this point being made in the short run. Obviously a road and 
sewage is going to costs more to build and pay off. However, would it not 
eventually make the city money as the taxes paid on the housing units pay 
off the costs of the road and other utilities? Just a thought.

Donovan J Arnold


>From: Bob Hoffmann <escape@alt-escape.com>
>To: "Vision2020" <vision2020@moscow.com>
>Subject: Re: [Vision2020] City Taxes, again
>Date: Mon, 28 Jul 2003 21:59:09 -0700
>
>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
>
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