October 2, 2002
EDITOR:
Should we vote to end the property tax caps which have been in place since 1979?
YES. Here are ten reasons.
1. Like many other 1979 things, the tax caps are outdated because that was a long
time ago. In 1979 nuclear disaster was barely avoided at Three Mile Island, PA. A. Phillip
Randolph, after a lifetime of civil rights leadership, died at the age of 90. And thanks to an
average inflation rate of 4.3% per year, something that cost $10.00 in 1979 would cost
$25.20 today.
2. You wouldn't decide to arbitrarily limit part of your income to what it was in 1979.
Your church wouldn't. Your employer wouldn't. Your favorite charity wouldn't. This list is
endless.
3. This is a critical moment for Saginaw, not just an easily solved "budget problem".
Without a YES vote we will lose $3.5 million worth of services, including housing
inspectors, the Anderson Enrichment Center and more firefighters and police officers. In
1979 we had a firefighter for every 585 residents. Now a firefighter has to cover 687
people. In 1979 there was a police officer for every 416 citizens. Today an officer has to
protect 498 people.
4. One of the worst, and least understood, consequences of tax caps has been
our loss of state shared revenue. The State of Michigan uses local tax rates to calculate
how much shared revenue goes to each city in Michigan. Because of our tax caps
$6,628.165 which would have come to Saginaw has gone to other cities over the last 23
years.
5. No other Michigan City has a dollar limit or cap on any tax it collects. The reason?
They have correctly figured out that it doesn't make sense.
6. This is an important economic development issue. Companies want to locate
and expand in communities that are safe, clean, offer a good stock of housing in all price
ranges, and provide recreational and cultural opportunities. Without a YES vote on Nov. 5th,
the city will be forced to make substantial cuts in every one of these areas.
7. Ending the tax caps will not put and undue burden on anyone. If you own a home
with a $50,000 market value, it will amount to 30 cents a day. A homeowner with a
$110,000 house will pay just 67 cents per day.
8. Most low income senior citizens won't even have to pay that. The Homestead Property Tax Credit provides relief from any tax increase for those on a fixed income
which is below certain levels. Renters get a similar benefit for up to 60% of an increase.
9. Opponents of ending the tax caps have failed to offer a single credible argument
against a YES vote. Instead they have given us personal attacks on community leaders,
irrelevant information and propaganda masquerading as facts. A good example is Allan
Schmid's recent statement that ending the tax caps will raise property tax about 78%. It is true
that restoring our 10 mill tax rate represents a 78% change over the currently depressed
5.6 mill rate. But that in no way means that anybody's tax bill is going up 78%. When
these two mill rates are correctly applied to calculate taxes the increase in actual dollars is
13% not 78%. Allan Schmid can easily prove this to himself by simply calling the people
in city hall who send the tax bills. And to state the two examples again, that 13% increase
is just 30 cents a day on a $50,000 home and 67 cents a day on a home worth $110,000.
10. A YES vote to end the tax caps is endorsed by a growing list of community
organizations including churches, the Bridge Center for Racial Harmony, the Saginaw
County Chamber of Commerce, the Saginaw Community Foundation and many labor
unions. That tells us something.
There are plenty of reasons to end the tax caps. Let's do that on Nov 5, and invest in our future. Vote YES on 1,2,3.
James Doane