Thursday, July 21, 2005

Tennessee city abolishes property taxes

Now THIS is the way to go...

"We're not naive here in the city," said Mayor Danny Leverette. "We realize somewhere down the road that might have to be addressed. But why not, during these bountiful times, can you not give it back?"

Spring Hill approved a Taxpayers' Bill of Rights two years ago. City leaders say eliminating the property tax falls in line with that. Property owners need to keep in mind this wouldn't effect the county property taxes they pay.

3 comments:

Municipal Musings said...

Dave, a question: Rather than eliminating taxes outright, wouldn't the city be better off to have a substantially low mill rate then sock it away in a capital reserve fund? I agree, that it's extremely attractive for the community to have no property taxes, but wouldn't it be prudent to try to harness some of the good times a la the Heritage fund? Saturn won't be there forever, and too often communities rely on a single resource for their livlihood. With a much lower rate, but the prospects of advanced public services in the future, they could ensure long-term stability. Just a thought.

David MacLean said...

Yeah, if you or I were running the town. Bottom line is that politicians can't be trusted to properly oversee a reserve fund.

See: Heritage fund!

John Murney said...

How is this municipality going to pay for its operations without a property tax?

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