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Gump: Growth reduces
individual tax burden
Second Public Hearing on Conveyance Fee…
By Bob Robinson
Editor
Editor’s Note: This is
the second public hearing on a proposed Conveyance Fee increase under
consideration by the Darke County Commissioners. Read the story on the
first meeting here.
“Today’s mentality… what will you give me to stay?”
Darke County Commissioner Mike Rhoades, who was absent at Wednesday’s
hearing due to shoulder surgery, told a large group of concerned
taxpayers that businesses want to know what the county can do for them
– either to stay or to come here – and “we have no tools to compete
with other counties.” The proposed Conveyance Fee is intended to
provide some of those tools.
Monday’s meeting was the second and final public hearing on a request
to increase the current $2 per thousand fee to $3 per thousand on real
estate transfers. The commissioners will make their decision at a later
date. Rhoades stressed that the only time this fee is paid is when a
property is sold. It is not an annual tax on real estate.
Robert Foster asked commissioners how much money is used for grants as
opposed to loans. Rhoades responded that it could be either, depending
on the needs of the Economic Development Office. However, the money has
to be available for that to happen.
“It’s like a nest egg,” Rhoades said. He noted a $100,000 grant to
Versailles that made it possible to bring two new businesses with a
total of 75 jobs to the area.
Economic Director Marc Saluk said that ED funds are not used for loans
or grants, at least at this time… that money comes from state and
federal programs.
Bruce Mikesell told commissioners he had a proposal. He wants CIC
(Community Improvement Corporation) to continue, that it’s doing a fine
job. Why not set up Partnerships 4 Progress as a venture capital group
that can supplement CIC? He asked about getting local banks more
involved.
“And I would like to see a lobby set up to go to Columbus and tell them
to make Ohio more friendly to business,” he said, adding that he wasn’t
in favor of taxing additional dollars that make it hard on people
selling their homes.
Commissioner Diane Delaplane said that Gov. Kasich’s JobsOhio is in the
works to do that. The plans are out there, they’re working on the
details.
Mikesell said Darke County is behind other counties, and Ohio is behind
other states, noting specifically “our neighbor to the west.”
“It’s government’s job to create an environment for free enterprise to
work, not finance it,” he said.
Tom Subler said he heard last week that “everybody’s doing it” with
regard to offering incentives for businesses to stay or come to Darke
County.
“Remember the Dot Com investments, the housing bubble? Everybody was
doing it.” He said the best advice he ever got was from his
grandfather: “Buy when everyone is selling; sell when everyone is
buying.”
His point? Don’t do it just because everyone else is doing it. He asked
if the 6,000 percent he heard the previous week took into account tax
abatements and other incentives?
Rhoades responded that recent incentives he knew about were from the
city, not the county.
“If our economic development plan is so successful,” Subler said,
noting points made in the previous public hearing, “why do we need more
money? I voted for Mr. Stegall in November, hoping there would be no
more ‘same ol same ol’… seems like we’re still getting it.
“If you really think this is needed, put it to a vote and let the
people decide.”
Randy Gump, a member of the Darke County CIC Board of Directors, read a
prepared statement, summarized below:
2004: Whiteford Foods in Versailles announced it was closing, losing
171 jobs.
2005: Versailles, the Commissioners and CIC worked with two prospective
businesses – Codinos Foods and Kings Command Foods – to acquire the
facility. Conveyance Fee revenues played a vital role in bringing in
the businesses and 75 jobs.
An increase to the existing Conveyance Fee is an investment to grow the
Darke County economy.
Retaining and creating jobs results in sustaining home ownership,
creating additional housing units, increasing property values and
increased dollars spent in the economy.
Growth in housing units and property valuation reduces the overall tax
burden on residents and businesses.
According to the Darke County Auditor, Darke County property valuation
increased from $881.4 million in 2000 to $977.8 million in 2010.
According to the U.S. Census Bureau, Darke County owner-occupied median
value increased from $91,100 in 2000 to $114,000 in 2009. With 16,239
owner-occupied units and the increase in median value, total valuation
has increased $381.6 million or an average annual increase of $38.2
million.
Gump then noted that the average annual conveyance fee revenue
(2008-2010) generated for ED was $115,873. When compared to the average
annual value increase in owner-occupied homes, the rate of return on
Conveyance Fee dollars spent to median valued homeowners is 329 percent.
He concluded that the high rate of return on ED dollars has resulted in
an overall positive impact on county residents, homeowners, businesses
and taxpayers.
“I encourage the Darke County Commissioners to approve the conveyance
fee increase being recommended by the Darke County Community
Improvement Corporation.”
Bob Nelson told the commissioners that every home he has sold this year
sold for less than the owners paid for it in 2005. He asked if the
commissioners had considered a 50-cent increase instead of a dollar? He
also asked if they pass it, would they be willing to sunset
(automatically cancel) it at a specific point in time? Have they
considered exempting senior citizens if they pass it?
He was questioned why he would request an exemption for seniors. The
answer was they are retired and as they get older, they typically sell
their homes to move to the city or Brethren Retirement Community… they
are more likely to need the full proceeds of the sale.
Rhoades said he would consider re-evaluating it periodically, but
didn’t think a sunset was a good idea since they couldn’t predict the
future economic climate.
Nelson also questioned whether or not having the commissioners sit on
the CIC board was self-serving since they were the ones with the power
to raise the conveyance fee to serve that same organization.
“We are its biggest investor,” said Rhoades. “We should have a vote on
how the money is used.”
Saluk said that until last year, the commissioners had 100 percent
control. They stepped back from that… “Their actions have been anything
but self-serving,” he said.
In addition to the media and the speakers, the meeting was attended by
CIC Board members Matt Kolb, Dave Keiser and Jim Poeppelman. Interested
citizens included Candace Gibney, Micki Earwood, James McGlothin and
others.
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