Free land will always be a draw. Or at least that’s the hope. Ever since the Homestead Act of 1862, Beatrice, Neb., has provided land to farmers looking to scratch out a living. Times were simpler then. Now small towns like Beatrice have formed their own Homestead Act of 2010 in order to dole out land to reap the benefits of real estate tax revenue. The New York Times reports that towns like Beatrice, Neb., can no longer make any open public land a part; they need tax revenue.
It is what the small towns are doing
The Times indicates that this tax revenue move may be just what small town America needs. Quite possibly supposedly rich resort retirement towns like Boca Raton are feeling the pinch. Giving away land or charging even a small fee would ally tremendous costs, including all the lawn maintenance fees public lands require. Having more people in town will inevitable increase the town’s cost to provide services, but the property tax may be more than enough for making up that gap and then some.
Would a round of taxes for non-profits be within the offing?
Places like Manchester, N.H., and Concord, Mass., are wondering whether all non-profits should be exempt from taxes. The budget shortfall has to be made up in some way. The costs Concord could make up if quite possibly a portion of the 15 percent of their total real estate that is tax free changed sides would be tremendous. At what point will organizations that benefit society have to do more in order to keep their communities afloat? Schools, churches and other groups that traditionally evaded taxes may be forced to comply by the nation’s current economic reality. The need in small towns clearly exists, and also the New York Times isn’t really the only publication to notice this.
Beatrice welcomes homesteaders once more
Where the homestead began is where it shall return. There needs to be a driver of this tax revenue movement, particularly if the National League of Cities’ recent study is as grim as it sounds. According to the NLC study, American small towns will be within the red by as much as $ 85 billion on property tax, sales tax and state aid by 2012. Such shortages will demand action. The tax benefit is there if more people are brought in, and building new and improved homes would also raise property values.
Making sense of the dollars
You will find critics that question whether a town like Beatrice, Neb., should be able to give free land to just anyone. However, as Graton Mayor Tom Thompson told the Times, “What is the value of a lot to us if it’s empty?” When the reality is harsh, a simple and direct solution – a la Occam’s razor – is typically best.
nytimes.com/2010/07/26/us/26revenue.html?_r=2 and amp;hp
