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Voice of the Mid-Columbia | Kennewick, Pasco and Richland, Wash. |
Jim Smith's view (Letters, Oct. 16) on I-1033 expressed a common misconception when he said, "Growth will pay for itself. One hundred houses pay for 100 houses of service." Studies around the county have demonstrated that this is not true. Property taxes almost never support the service demand in municipal government.
In Washington state, an average municipal government will collect approximately 14 percent of the property tax dollar, which is seldom sufficient to support police, parks, recreation, libraries, streets, sidewalks, planning, economic development and other services.
In a University of Minnesota study, a 40-unit residential development would create a fiscal impact for a city of $85,876 while the municipality's increased revenue from property tax would only be $20,484. The difference is often made up through state assistance and other general expense revenue, all of which would be penalized and reduced by I-1033. Property tax increase payments also tend to lag a year or two, where expense increases are immediate. As cities grow, the types, quality and levels of service demanded also tend to increase.
Initiatives like 1033 fail to address increasing public demand for services and penalize cities that are successful in creating economic development, which is the best way to reduce residential tax burdens.
LAYNE ERDMAN, West Richland
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