Wednesday, September 19, 2007

Interesting point

Rich emailed me with a pretty interesting question from one of his students who asked what the Glenn Tax would do with regard to Tax Allocation Districts. The student said that would TADs would cease to exist, and Rich and I agree with that assessment.

As you know, TADs use the anticipated tax growth from rising property values in designated geographical areas to finance new infrastructure or other public improvements to help encourage new private-sector investments in the community. Eliminating the property tax, then, would eliminate a key tool many local communities have come to use to encourage economic development.


Blogger Rich said...


After emailing you I did find this link ( which, after sifting through a pretty wordy response, led me to conclude that TADs as we know them would cease to exist. Linking them to sales tax revenue growth is IMO a lousy idea because they fluctuate so wildly with the business cycle. Plus there is the problem of funding existing TAD debt. You either have to only partially get rid of the property tax (i.e. keep it in place in areas that are paying off TAD debt) or pay it off out of the revenue generated by the new state sales tax.

2:41 PM  
Anonymous Anonymous said...

Every time somebody mentions the 'Stach's whole "Great Big Tax On Everything and I Get to Control All the Money" thing, the first thing that pops into my head is Jeff Foxworthy's "You Can't Give Rednecks Money"

Does this happen to y'all, too?


4:57 PM  
Anonymous Anonymous said...

It does happen to me, but the thing is, the local control rednecks currently have the money.

We've got way too much government in this state. 159 counties, a gazillion small municipalities, and things like the TADs.

I'm for the Stache's plan, and I'm for it precisely because of its impact on "local control".

11:49 AM  

Post a Comment

<< Home