Monday, February 27, 2012

Should Only Homeowners Be Able to Run for Town Council?

Recently someone came to me with an objection expressed by a friend that I was not a good choice for Town Council, because I rent my housing rather than owning a home. The objection was based on the idea that people who don't pay property taxes should not decide what to do with property taxes paid to the Town.

However, in my view, the Town is not well-served by having a Council that is limited to individuals who pay property taxes. Here are some facts that support my position.

While property taxes are one source of income for the Town of Castle Rock, it's important to note that property tax income will be less than one percent of the total funding estimated for the Town in 2012. By contrast, sales tax revenue is 28.5 percent of the Town's estimated 2012 revenues. 

Further, if the standard of "who pays" is applied to Town Council candidates, then very few people would qualify to serve on the Council. For example:

·  Impact fees produce seven times as much revenue for the Town as property taxes. However, impact fees are paid by developers, not residential property owners. 

·  The Town takes in about three times as much revenue from motor vehicle taxes as from property taxes. Motor vehicle taxes are paid by individuals who buy a car in Castle Rock.

·  The Town brings in about twice as much revenue from franchise taxes as from property taxes. However, only utility companies, such as the cable companies, pay franchise taxes.

If the objection raised above is taken to its conclusion, who could run for Council? Only developers who own a home, who own a utility company, and who bought a car in Castle Rock in the past year? I hope that sounds as absurd to you as it does to me.

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