Quote:
Originally Posted by TallBob
If taxes are deferred on a particular project taxes are either at a lower rate or eliminated for a period of time. If the developer defaults on the property because of financing or another problem after it's buit.... then what! The city spends/contributes rescources to a project, so hopefully it is successful. If it goes bad, who's on the hook? I've got no problem with Tif's and other schemes to help a developers get a troubled project going to stimulate growth in an area. But it's like I said, if it doesn't pay off the city or county, ect., has to make up that definciency. And who do they turn to? The taxpayer! What, do think financing falls from the sky? Give me a break!
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The taxpayers are ultimately on the hook for any subsidy that the local/state government gives to a development, but if you reduce/eliminate property taxes across the board the taxpayers are on the hook for even more. The lost property tax revenue has to be made up somewhere, and that's either going to come in the form of reduced public services or increased income taxes, both of which have a negative effect on the average taxpayer. What, do you think the city government's budget falls from the sky?