Friday, October 12, 2007

A fee is just another tax

Politicians try to avoid the word tax when ever they can. They like to use words like user fee, impact fee, license fee, etc, but let's face it is just another tax.

There is a movement in Mineral County to impose new taxes in the form of "fees," but we are smart enough to know these are just more taxes on an already over taxed population. Mineral County is one the highest taxed counties in the state, and we have little or nothing to show for it.

The latest assault on the tax payer is being pushed by those trying to stop new economic development in the county. There are now rumblings of sub-division impact fees in the county. The fees would be paid by the developer, which in turn will tag the fees on the price of the land raising the cost to the end purchaser. That additional cost of the property will be recorded as part of the assessed value, and the new land owner will pay property tax on that piece of property forever. It is away for the county government in increase the taxes on everybody, and slide it in under the radar.

It is not just user fees that cause property assessed value to increase to benefit the coffers of the county. Additional unnecessary requirements put on the developers in the name of progress, do little more than increase the taxes on the end land user. The politician likes pretend that the develop pays these for these requirements and fees, but that couldn't be farther from the truth.

Let's look at what really happens; A developer purchases 10 acres of land, and wants to put in 10, one acre lots. He plans to sell each lot at $20,000 per lot. The county comes in an puts in a $10,000 impact fee, and requires the developer to put in an unnecessary storm water run off pond for an additional $10,000. The developer simply divides $20,000 by 10 = $2,000. He then adds the $1,000 to each $20,000 lot making them $22,000 lots.

The person that purchases the lot pays for the impact fees and the pond, not the developer as the county politician claims. Not only does the new land owner pay the impact fee, but he pays tax on the additional assessed value forever, and has to live with the mosquito's that breed in the unnecessary pond.

Addition fees and requirements are just another way for politicians to raise taxes on the taxpayer, and call it something else. Mineral County cannot afford any additional taxes, even if they call them fees.

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