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A tax is a tax is a
tax
That’s My Opinion
By Bob Robinson
The Commissioners announced on May 11 that they were considering an
increase in the County Conveyance Fee from $2 per thousand to $3 per
thousand. They intend to hold public hearings at their regular meetings
on Wednesday, June 15 and Monday, June 20.
After that, they will make their decision. Because it is a fee
increase, they can vote to move ahead without public support… although
I’m sure they would be happier if they had it. The decision to hold the
hearings came from a request to consider the increase by the Darke
County Community Improvement Corporation and Economic Development
Director Marc Saluk on May 9.
Conveyance fees are imposed on real estate sales transactions. For
instance, if a property sells for $200,000, the current fee of $2 per
thousand would generate $400 at the time of sale. A $3 fee would
generate $600. A 50 percent increase. The revenue is used for economic
development. And according to the May 11 meeting, and the Commissioners
Corner published Wednesday, the funds will only be used for that
purpose.
Commissioners Corner: “This will give the Economic Development
Department a much needed tool to help small and large businesses to
expand, and attract new businesses into Darke County.”
As most of us know – or at least can surmise in today’s economic
climate – properties are not moving well. Consequently fee receipts are
down. This gives Economic Development fewer resources with which to
achieve its objective: “Jobs.”
And we need “Jobs.”
I’m going to assume that this proposal is – or is going to be –
supported by many individuals and businesses that are dedicated to
economic development as a vehicle to put Darke Countians back to work.
Helping businesses to stay, and getting new businesses to come,
requires resources. We are in competition with other communities
equally committed to improving their own economies… and often the
difference could be what we offer to a business considering Darke
County as its home.
I’ve been following the efforts of Partners 4 Progress, Greenville
Mayor Mike Bowers, Versailles Administrator Randy Gump and ED Director
Saluk… the accomplishments are phenomenal. They are doing an excellent
job.
I have also heard from several individuals not happy about the proposed
fee increase. One person made a statement that I thought was
interesting…
“Let’s see,” he said, “Sales are down. Revenues are down. Solution?
Raise the cost of the sale to increase revenue.” He added that in his
experience, no business has ever improved its economic picture by
raising the cost of its product or service.
Needless to say, this person is a businessman, not a public servant.
Raising the cost of any service (be it taxes, fees, whatever) to make
up for lost revenue is typically a political solution.
If you know me, you know my passion is our young people. Next is our
local economy… not only for those who are currently out of work but
also to bring our youth back to help build the future of our
communities.
They need jobs or they will go elsewhere.
I will do everything in my power to help support the economic
development effort under the leadership of Saluk and P4P. They are
doing a great job. And I have been impressed with the fiscal constraint
shown by our elected officials… in all departments. However, I also
understand the concerns of individuals and businesses already
struggling to relocate or move their properties.
The “per transaction” amount may not be huge, but it represents one
more fee that a buyer or seller will have to absorb.
I cannot support the continuing cycle of taking the easy way out that
has been typical of the government problem/solution process in the
past. A Conveyance Fee is nothing more than a tax. In this case, a
Transfer Tax.
Voters at all levels of government spoke clearly last November. No new
taxes. I was opposed to new taxes coming out of the Commissioner’s
Office when I was seeking a seat there. I no longer have those
aspirations, but my commitment to the voters and taxpayers of this
county remains the same.
A tax is a tax is a tax. And that includes taxes by any other name. The
Economic Development Office needs to make do with the resources it has.
Just like the rest of us.
That’s my opinion. What’s yours?
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