SB 2288–Speculator’s Dream

There are times when the state legislature does something that is a blatant disregard of the people it represents and SB2288 is such bill….which states:

AN ACT TO AUTHORIZE THE BOARD OF SUPERVISORS OF A COUNTY AND/OR THE GOVERNING AUTHORITIES OF A MUNICIPALITY TO GRANT A PARTIAL AD VALOREM TAX EXEMPTION FOR AGRICULTURAL PROPERTY THAT IS BEING CONVERTED TO A RESIDENTIAL USE IN AN AMOUNT EQUAL TO THE DIFFERENCE IN THE ASSESSED VALUE OF THE PROPERTY FOR AGRICULTURAL USE AND THE ASSESSED VALUE OF THE PROPERTY FOR RESIDENTIAL USE; TO PROVIDE THAT THE EXEMPTION SHALL END WHEN THE PROPERTY IS OCCUPIED BY A HOMEOWNER; TO PROVIDE THE MANNER IN WHICH A REQUEST FOR SUCH EXEMPTION MUST BE MADE; AND FOR RELATED PURPOSES.

This appears to be a boon for the purpose of land speculation….

A case could be made that land speculation is the cause of almost every major recession/depression that has occurred whether nationwide or statewide…..The 19th century economist Henry George describes it:

That land speculation is the true cause of industrial depression is, in the United States, clearly evident. In each period of industrial activity land values have steadily risen, culminating in speculation which carried them up in great jumps. This has been invariably followed by a partial cessation of production, and its correlative, a cessation of effective demand (dull trade), generally accompanied by a commercial crash; and then has succeeded a period of comparative stagnation, during which the equilibrium has been again slowly established, and the same round been run again. This relation is observable throughout the civilized world. Periods of industrial activity always culminate in a speculative advance of land values, followed by symptoms of checked production, generally shown at first by cessation of demand from the newer countries, where the advance in land values has been greatest.

This bill is just another attempt to help the land speculators while depriving the state of much needed tax revenue…in these days any reduction in revenue can only lead to a cut in needed services….

Once again, the state legislation is dealing the people of the state a bad hand, just as they do every session…the people need to stop sleeping through the day and wake up politically…they are paying these people to do nothing but screw them at every session….

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2 thoughts on “SB 2288–Speculator’s Dream

  1. You’ve got that right!

    It would be much better to help builders along by offering a 100% exemption of their new buildings from property taxes. This would permit them to carry them for a while if necessary.

    Of course, to be fair, the same ought to be extended to existing homeowners. Their property tax ought to be based on the value of the land on which their home sits, be it a postage stamp or a plantation, and not on the value of the home itself. If the postage stamp is far from amenities provided by the community or lovely views provided by nature, its value, and therefore their property tax, would be low. If their postage stamp lot is close to community amenities and lots of services provided by taxpayers, their property tax would be higher. Farmers could farm on the fringe, but would find the taxes prohibitive if they sought to use farmland served by city water, sewers and buses. Seems logical and just to me.

    This would provide encouragement to all sorts of businesses which employ people and meet market needs, and discouragement to land speculators, who employ almost no one other than tax accountants and lawyers, and are dogs in the manger when it comes to the needs of the market.

    1. Thanx for the visit…..your points are excellent and I try to keep the idea of LVT before the public…..there needs to be a way to make people understand the benefits of LVT….I will keep trying….

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