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Back in 1996, when the Private
Act was passed by the Tennessee State Legislature to create our
current Development Tax to pay for the burdens of growth, its
intent and purpose were clearly stated:
Section 3: "It is the intent
and purpose of this act to impose a tax on new residential
land development in Rutherford County, ... thus ensuring and
requiring the persons responsible for new development share
in the burdens of growth by paying their fair share for
the costs of new and expanded public facilities made
necessary by such development." 1.
The problem with the development
tax is that much of the money is used for many purposes other
than this stated intent. Development tax money has been used
for the repairs to the Community Care roof, the courthouse exterior,
for various data processing and county office equipment, to name
a few. While these are all necessary and legitimate budget needs,
they are not needs caused by new residential land development.
These recurring expenditures should be paid for by our property
tax dollars.
An Impact Fee, on the other hand,
is a fee that the payor is guaranteed to receive a direct benefit
from. If you are a member of an organization or a club, you pay
a membership fee. You receive a direct benefit from that fee
... whether it be for use of a club's athletic facilities or
current information and services from a professional organization.
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