October 16, 2015 (Regarding Unjustified Tax Breaks)
Dear Neighbors,
This is the second in a series of brief emails in connection with the coming election for the North Castle Town Board on Tuesday, November 3. In my last email, I explained how accelerating the repair of our roads could save us money. This time I am writing about why the town generally should not grant condo tax breaks for new development projects.
Before starting, I apologize if you prefer not to receive this type of email and provide you with the ability to unsubscribe at the bottom.
Condos, in very general terms, are taxed at roughly half the normal (fee simple) rate that applies to the vast majority of our housing. And developers increasingly have requested that the town tax their new developments as condos, which allows those homes to be sold for higher prices. They often seek to justify their requests on the basis that they cannot make the project work financially (i.e., earn enough profit) unless they are granted greater density and lower tax rates than they are entitled to “as of right” under the existing zoning laws. I am not persuaded by these arguments.
There are many good developers and I want their projects to succeed, as long as they are good for the town and its residents. However, I reject the notion that the town’s taxpayers should be expected to bail out developers of new projects because it is unfair and expensive for taxpayers like us, who are paying full freight, to be forced to subsidize the lower property tax rate. The buyers of these developments receive essentially the same services we have – police and fire protection, garbage removal and schools, for example – and benefit from our extensive infrastructure as well.
To be sure, condo tax rates can be justified in limited circumstances where needed to achieve important town objectives that are in the best interests of its residents. For instance, a good case can be made that preferential condo tax rates are appropriate for our retired seniors who feel they must downsize. By making living here more affordable for them, we can retain residents who are an important part of the fabric of our community and who are among our most experienced and committed community volunteers. Furthermore, the costs we incur for these residents can be significantly lower since they do not have children in the school system
In the end, I believe that as a matter of fundamental economic fairness, this type of expensive tax break should not be granted to new projects unless doing so, in return, provides a compelling benefit of sufficient magnitude to the town and its taxpayers. That is why I joined the rest of the Town Board in rejecting condo taxation for Brynwood and why I was the sole vote last year against granting this expensive tax benefit to the old lumberyard project on Bedford Road.
Thank you for taking the time to read my email.
José
PAID FOR BY FRIENDS OF JOSÉ BERRA
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