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Mainstream Media: Tax Hikes Unavoidable
By Greg L | 15 October 2007 | Local Economy, Prince William County | 25 Comments
The mainstream media seems to have collectively failed economics, otherwise we wouldn’t have the Washington Post and the Manassas Urinal-Massager both telling us that our property tax bills are inexorably going to rise just because a tax rate increase seems to be unavoidable. You’d think after last year’s extensive discussions around the budget for Prince William County, they’d have learned enough about the effects of lowering real estate assessments and been able to tell the truth to their readers. Since the local newspapers generally seem to be advocates for tax raises though, I guess it shouldn’t be surprising that they’re going to pull out the only fiscal tool they seem to understand, the tax-hike hammer, in order to tackle what appears to them as a revenue shortfall nail.
If the amount of government revenue required from residential taxes is flat and assessments have gone down, yes, there needs to be a rate increase in order to keep the taxes paid by homeowners constant. Just because there’s a rate increase doesn’t mean that the average tax burden per family is going to rise by $257 per household as the Washington Post alleges. If each household was paying on average an additional $257 in real estate taxes as they say, it would mean that county revenues would be increased by at least $32 million dollars, assuming 125,667 housing units, which is certainly a conservative figure (source: 2005 census data). No one is calling for such revenue increases as far as I’ve heard, which constitute spending increases.
Since residential real estate taxes account for about 61% of the county’s revenues, the real question is the degree to which other revenue sources might have declined, requiring a shift of tax burden to homeowners. If there’s a dramatic decrease in revenues from BPOL taxes, personal property taxes and the other revenue sources that the county depends on, in order to maintain flat revenues, it might be necessary to raise residential real estate taxes in order to offset losses from other revenue sources.
But that’s not what the media is saying here. Their contention is that because real estate assessments are going down, that means we have to pay more. In recent years, the opposite has been true — that when assessments rise, so do our tax payments, as the tax rates never seem to decrease fast enough to offset the rise in assessment increases. If our assessments increase, we always seem to pay more in taxes. If assessments drop, does that by itself mean that our taxes will also increase? It shouldn’t.
The game here is clearly to make a case that the county can’t possibly afford to devote more resources to public safety in order to implement enhanced efforts to reduce the number of illegal aliens in the county. Until the mainstream media can actually make a credible case for this argument, which is unlikely, this goofy analysis isn’t something anyone should take seriously.
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If the tax rate goes up by a greater percentage than the assessment goes down, which is precisely what the BCOS is talking about, then the drop in assessments is likely to turn out to be largely irrelevant.
And does anyone seriously think that the rate will drop when the real estate market turns around and the assessments start heading back up again ? That’s not usually how government works.
This is from an Op Ed piece in the Fairfax Times newspaper. As you’ll see - NoVA’s lack of mony is due to the money being hijacked to elsewhere in Virginia. Ask you state-wide candidates about the allocation system. If they don’t know - vote for thier opponent.
We are Virginia’s Least Sophisticated Voters
By Robert H Jackson
Fairfax County residents constantly complain about “raw deals” received by the County from state government. Yet, we continually support legislation that treats ourselves unfairly. We are truly Virginia’s least sophisticated voters.
We are, by and large, bright, well educated and successful. When honest, we’d admit that we often find ourselves looking down on the rest of Virginia as bumpkins or rubes. Yet, those “bumpkins and rubes” regularly play us for fools, as their senators and delegates from both political parties take tax dollars from us and send us pennies in return. Moreover, we generally applaud the effort.
Take the 2004 tax increases for example. Democrat Mark Warner and Republican John Chichester pushed through the largest tax increase in Virginia history, championing it as essential for higher education, Medicaid and public safety. But it was local schools that sold the tax increases. Few among us want second-class public schools.
If we were to poll Fairfax County residents, I suspect that a majority would opine that this tax increase was good for us. But the facts show just the opposite. We paid much and got little back, most especially for public education.
The Virginia Senate Finance Committee staff estimated the net cost to Fairfax County residents as $107 million and $117 million for 2005 and 2006, the first two years of higher taxes. What did Fairfax County Public School receive in new money as a result of sending these large sums to Richmond? According to FCPS’ budget office, we received $7.4 and $11.2 million in new money for the first two fiscal years after the tax increases. Dollars out; pennies in! Meanwhile, FCPS superintendent Jack Dale has identified $1.3 billion in unfunded capital needs for the next ten years, mainly to rehabilitate old schools. Who are the bumpkins?
Fairfax County residents are obligated to help fund state government and to aid low-income areas of the Commonwealth operate their schools. Virginia has a complicated set of measurements (fiscal stress factors) and formulas (local composite index) that supposedly do this on an economically sound basis. Yet, if one discards the window dressing and looks at average income by jurisdiction and the state aid formula, the correlation is less than 0.5, based on an analysis I’ve seen. Thus, Fairfax County residents subsidize good schools and lower property taxes around the state and not just in poor counties. Meanwhile our own schools continue to deteriorate physically and our real estate taxes skyrocket.
Recently, Governor Kaine has resurfaced his proposal to fund preschool with state tax dollars, and some members of the General Assembly have proposed that the Commonwealth pick up part of the tab for school construction. A poll would probably show Fairfax County residents supporting both proposals. But both plans mean once again sending dollars to Richmond and getting pennies back. They also mean we’d be waiting longer to expand all-day kindergarten countywide and to rehabilitate dilapidated schools. We soon would be paying even higher real estate taxes. Why should we fund preschools around the Commonwealth, when we are not yet providing all-day kindergarten to our own children? Why should we build new schools around Virginia when we educate many students in trailers?
We need to tell our representatives in Richmond, both Democrats and Republicans, to stop the raids on our wallets. They need to vote “no” on new schemes that meet other areas’ needs at the expense of our own. There is virtually no likelihood that Fairfax County will start receiving a higher share of funding from Richmond. Other areas of the state will not support cutting their cash flow to benefit us. Accordingly, our legislators must not support new programs that bring pennies to Fairfax County in exchange for dollars. We need creative solutions that permit Fairfax County to fund local needs with local dollars in a manner that protects residential taxpayers from excessive burdens.
Most important, we need to check our egos, learn the facts, and become sophisticated voters. We simply cannot afford to remain the patsies of the Commonwealth, who enable the very raw deals that we purport to hate.
The Board has lowered rates in recent years; however the size of the budget certainly didn’t decrease. The assessments will continue to drop over the next 18 to 24 months as a direct result of the immigration battle. We will have hundreds of banks fighting to sell houses in Westgate/Sudley and Manassas Park. The immigrants drove up the prices on homes in these areas, when they depart it will drive the prices down.
Frankly, my house is paid for and I am here until death or I get stuck in a home. However there are many young families in these areas who are not as fortunate as me. I am all for cleaning up the illegals but not at any cost.
Mr. Stewart will bankrupt this County if he doesn’t slow down and get control of this issue. Any resolution needs to be able to stand up to a challenge in court. If not it only brings a lack of creditability to the cause and will in the long run cost more many to much more time to resolve our collective issue.
Nunya,
Please, add the Woodbridge(Ms. Barg’s district, soon to be Chris Royse’s) to the foreclosure cause list. Woodbridge and City of Manassas zip codes were listed in the top four zips leading the nation in foreclosures(reported in mid-June).
I see foreclosures happening COUNTY WIDE! Some areas have certainly been hit harder than others. Now, is the time to get our first responders back in the county, along with teachers. The banks are bidding on the houses for anywhere from $25-$70K under the balance of the mortgages. This is driving the property values down even MORE. Two weeks ago there was one Auctioneer at courthouse conducting 45 Trustee’s Sales, and there was not a sole there to bid on any of them.
The MJM no longer gives the names of the owners. I wonder why. I’m a title examiner in PWC, and see the names of the owners. The illegal alien invasion is cause #1!!! The banks, loan officers, and realtors were major players in this too. Shame on them, and took advantage of their own. Yet, we’re the bad guys. Your estimate of 18-24 months sounds very accurate.
I think the resolution is sound, and well thought out. Now, let’s fund it!!! I’m not fond of paying a higher tax rate. This was going to happen anways, because there are too many FORECLOSURES!!
Lafayette on 15 Oct 2007 at 9:23 am:
This site will provide the owners name of virtually every property in PWC. It will also give a description of the property and it’s assessment. You probably are aware of this site and if someone needs the owner’s name, here is the place to get it. Maybe it should be publicized.
http://www4.pwcgov.org/realestate/LandRover.asp
Lafayette,
I look up these addresses and they have Hispanic names. I’m sure with these no money down, bad or no credit mortgage lenders still hawking the area, an illegal alien just has to find another house and call that number.
The cost of illegal immigration is atronomical.
Nunya,
We can’t afford not to do anything about illegal aliens.
If the resolution had been in place a couple of years ago, we wouldn’t be having the problems were are experiencing now. That resolution needs to go forward and be implemented.
Yes. I agree with Patty. We need to start the resolution action and quit the talking!
Anon @11:21
I have put this link up on another thread. It is from PWC’s public website. It most certainly can and should be publicized!
I didn’t give all the details about the site. I think most would realize this was on each and every property. Thank you, and yes I was MORE than aware of that.
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Lafayette said on 14 Oct 2007 at 9:26 pm:
ateacher,
Visit the PWC Assessment website. It has tons of information on properties. They list the #of bedrooms, baths, square footage, approved permits, and more.
http://www4.pwcgov.org/realestate/landrover.asp
Heck, me and Dolph might have that house on the “favorite” list. We must continue to report Zoning and Building Code violations. I’ve seen a lot of major renovations going on a couple of house, and reported them. They now have building permits.
Dolph,
Thanks!
Manassas City Residents,
City of Manassas Assessment website. It’s similar in information. Please visit the website at.
http://data.visionappraisal.com/ManassasVA/DEFAULT.asp
ALL,
Please check out these sites! They are a wealth of information!!
The Patriot,
I like to check out the OSD addresses! I bet you do too!
The resolution is long overdue, and we can’t sit back any longer.
We need to hear the “power of 8″, meaning another unanimous YES vote tomorrow for funding/implementation!
PWCBOS,
Do the RIGHT THING!! Vote YES, on Tuesday!! The legal voting citizens will be DELIGHTED and KNOW their voice was heard.
Latayette,
I agree with you on the “power of 8″ but let’s remember the “power of 1″. THAT power is one person (read each and every one of us) contacting our representatives at every level and making sure our voice is heard.
They swore we needed new taxes to fund schools so they pushed a meals tax on us 3 times and each time it was defeated by greater numbers than the last. Now they are saying higher taxes are needed to resolve THIS problem. It appears to some on the Board that taxes are the SOLUTION, not a means.
How about these jokers cut the fat out of the local government? Instead of voting on a new building to hold meetings in, they get rid of dead weight or, cough cough, look at the salaries of county employees and see if they are justified - the Feds do it all the time, ESPECIALLY concerning their contractors.
In the words of Madison Ave, Mr. and Mrs BOCS…JUST DO IT!
Here is the property information site for Manassas Park:
https://www.manassasparkva.gov/applications/txapps/index.htm
When the politicians cry about needing money for the schools, don’t beleive it. Watch this video. It’s 40 minutes in length, but…
holy moly!
http://youtube.com/watch?v=pfRUMmTs0ZA
I before E…
John Light,
That meal tax is a total rip-off! I will not dine in the City of Manassas or Manassas Park, because of it. It makes me sick to pay almost twice the tax.
I know of one eating establishment that recently opened in PWC that has pretty much the same menu as it’s “sister” establishment in the City of Manassas. Well, we don’t have the meal tax in the county so the prices on the menu are higher by the meal tax rate at the new place.Hmmm. When asked about the prices, they replied it’s still the same price you are used to paying in the City. The nerve of these fools, and too a bunch of senior ladies. I will be avoided both establishments like the plague. The are many locals on here that will know exactly where I’m talking about. It’s too bad they have GREAT food!
Now, there’s quite a bit of dead weight in the government of PWC. I know of two salaries they could completely from Neighborhood Services. I’ve called them out enough by name, and won’t bother now.
What has happened to term “public servant” I guess it’s not PC.
Our Board of Supervisors is just that. Do they need to be reminded?
When you look at all the people driving through PWC to get to their jobs I know that our properties will look very appealing once the illegals are gone. I think supply and demand will eventually return things to normal. We will save a tremendous amount of money once the demand for ESOL programs drops in our schools.
Lafayette,
That same sister establishment has 3 levels of drink prices also…little known fact. Early, mid-evening and late. I guess they are assuming if you drink enough, you won’t notice.
CJC
Excellent points.
We must all need to remember this did NOT happen overnight, nor will it go away overnight. We return our community to what it once was. We must all work together. Yes, it will take some time!
Time will tell.
Did anybody vote on Chris Core’s show this morning?
74% of those responding say illegal immigration is their number one issue!! How can THAT be ignored?
dolph,
I think you got it! I’m really mad about this, and I was really looking forward to having a new decent place to eat on this side of town, and not have to cross Rt 234 to boot. Oh well!
Lafayette,
It’s too bad you didn’t see the illegal alien apologist drive down our neighborhood with his “RACIST” sign scribbled on his HUM-VEE. I guess he is driving through the neighborhood trying to intimidate us. It amazes me the things I see. I guess he wants to scare us into not going to the BOCS meeting tomorrow. Well, his scare tactics don’t scare me!
Aren’t you all glad that the Washington Post and the Manassas Journal Messenger are NOT responsible for balancing our budget. Can you imagine what nonsense they would spend our tax dollars on?
Patty,
I may have seen that thing rolling through here Sunday afternoon. They won’t scare me either.
Illegal alliens and their apologists,
Go HOME!!! We’ve had ENOUGH, and “We’re not gonna take it”-Twisted Sister. The “red carpet” is getting rolled up!! Please, feel free to take your “anchor babies” with you too! You’ve drained the system long enough, and diminished our qualitiy of life. The Rule of Law is what it’s all about!!!