Article published Feb 3, 2005

Proposed tax would be new, unfair burden

To the editor,

I am writing to express my concern about what I consider to be misrepresentations about who is going to be affected by this new adequate facilities tax that has been proposed. It seems that most of the editorials and letters on the opinion page suggest that this is a tax to make "newcomers" pay their fair share for the cost of new schools and other facilities. I think it is absurd to suggest that everybody buying a new house has just moved to Rutherford County! (1)

I came here as a child over 20 years ago. My parents live here, and after finishing my education, I elected to stay here to be close to my family. I married, had a child and have a professional career. Recently I was able to purchase my first home after living several years in an apartment. I simply moved from one part of town to another, and my child did not even have to change schools. In other words, I did not cause any significant impact on the county's financial needs. I purchased a new home because I could not find an existing home that fit my budget. Part of the price of my home included the county development tax of $1,500, along with a lot of other government and utility fees, including a $3,400 sewer tap fee. If the idea of these taxes and fees is only tax "newcomers," then where can I apply for my refund? (2)

If the new tax of up to $2 per square foot had been in place, the price of my home would have been increased by up to $3,400. (3) That increase would have created a problem in my loan package that would have prevented me from getting my house. This new home buyer tax is going to affect a lot of people like me (4) who have chosen to stay where we grew up. I do not think it is fair to put that tax burden on us just because we want to stay close to our families. Now that I own my home I pay property tax like everyone else. That should be enough! If you folks do not think living in Rutherford County is worth the cost of property tax we pay, then move somewhere else! (5) Stop trying to make my generation pay our own way and yours, too.

Lori Frazier

Tabitha Street

 

RNA Response

(1) It really seems quite evident that most people know that this is a tax on new development, not new people.

It is a tax on new development because:

NEW development = need for NEW schools, NEW infrastructure and EXPANDED services.

These new services and infrastructure directly benefit whoever lives in that house for however long they live there.

Then they benefit the next occupant ... and the one after that.

(2) The cost of the development tax , the sewer tap fee and other fees that were necessary to provide her with services were amortized into her mortgage.

If Mrs. Frazier sells her home, those costs will be passed on to the next buyer as part of her selling price. The decision to buy a home, whether new or pre owned, is a major financial committment.

There are always deciding factors as to what house to buy ... whether they be price, location, property taxes, etc. How much house can you afford?

NEW development = need for NEW schools, NEW infrastructure and EXPANDED services.

(3) Do the math: Adequate Facilities Tax @ $2 per sq. foot minus the $1500 Development Tax = $1900 additional for this woman with a professional career who, along with her husband, chose to buy a brand new 3400 square foot home.

(4) Why, exactly, should the property tax payers of Rutherford County subsidize the cost of Mrs. Frazier's new house? Why should our growing elderly population on fixed incomes subsidize Mrs. Frazier's new house?

Remember: NEW development = need for NEW schools, NEW infrastructure and EXPANDED services.

(5) So, Mrs. Frazier's conclusion is that if you cannot afford to subsidize her new house by paying higher and higher property taxes and wheel taxes for the infrastructure and services that that house created a demand for, then you need to leave???

Ok, seniors, Ok you folks who just lost your TennCare benefits, Ok you folks who are facing the expense of an unexpected medical catastrophe ... start packing!