statistics The Riverdale Observer: September 2005

The Riverdale Observer

The "RIVERDALE OBSERVER" is an individualy written, produced and distributed broadside newspaper dealing with one topic per issue as it relates to Riverdale Park, Prince Georges County, Maryland, United States of America, Earth, Milkyway Galaxy, Universe, and Beyond (the writer does not wish to be too limited in subject matter).

Location: Riverdale Park, Maryland, United States

Born and raised in Weems, Virginia attended VPI, BS General Science 1964, Work experience in Research and Quality Control Labs; WWTP Management, Operation, and Teaching; Member of various Boards, Organic Food and Farming, Tax Reform, Homeschool, and Soccer. Married, wife and I homeschool two teenage children.

Friday, September 02, 2005

Who's not paying their fair share

I ran some numbers for how much letting land go vacant cost those of us whoare making good use of the land. The figures below are the totals of the subsidy we who are making good use of the land are paying for those who are not using the land. These are the unused land numbers. I am also working getting numbers on the underused land too, I will post them when I get them together.

We are not going to solve our economic development problems by doing things the same way they have been done before. We have to think outside the box of ways to change the economic incentives to encourage development. We need to get human nature working with us instead of against us. Here is how. Every one looks for the best deal they can get. When grocery store A sells milk fora dollar a gallon less than store B, people buy milk from B. Car dealer A sells the same car for $1000.oo less than Dealer A, where do they go. For expensive items people will drive to Delaware or North Carolina to avoid the sales tax. This happens so much that Maryland puts police patrols on the border to try and catch the people. People shop for alcoholic products in the district of Columbia because the liquor tax is lower in DC than in Maryland, and you guessed it police on the borders. All things being equal people will try to live and work where the income tax is lower, or try to live where the property tax is lower...have any friends who have bought retirement homes in Delaware? Face it only the clueless and mentally incapacitated try to pay more for what they buy and use. So!..people move around so they can pay less for things. Wooops, there is one thing that we buy and we can not move it...if we want it to be a better deal we have to use it better. And that is what the Land Value Tax is about encouraging the best and highest use of land, so there is no unnecessary sprawling, underused, or vacant land causing us to have to pay for roads, and electric wire, water and sewer pipes,police officers, fire fighters, public workers, teachers, schools to serve this vacant land that does not pay its full share for all these services. And, that is just the governmental stuff. There is also inefficiency in the local economy caused by these vacant and underused lands.

The Land Tax is better than The Improvements Tax and Land Tax Combination for Economic Development. If Riverdale Park taxed only land then the owners of these vacant lands would have to pay their Fair Share for Governmetal Services.

20 Vacant Industrial Lots would pay a total of $76,904 more in taxes

42 Vacant Commercial Lots would pay a total of $25,391 more in taxes

7 Vacant Multifamily Lots would pay a total of $3,965 more in taxes

60 Vacant Residential Lots would pay a total of $25,391 more in taxes

This also means that owners who are making better use of the land, will pay less in taxes than they currently pay.