If you give land away, people will build. Or at least that’s the hope. Beatrice, Neb., once provided public domain lands to pioneering farmers via the Homestead Act of 1862. Times were simpler then. Small towns like Beatrice are forced to adopt legislation like the Homestead Act of 2010, where free land is given in order to produce tax revenues to fill the spending budget deficit pit. Public parks and similar non-tax revenue generating properties aren’t what towns like Beatrice, Nebraska need any more, writes the New York Times.
Small town America should follow Beatrice’s example
The Times indicates that this tax revenue move may be just what small town America needs. Even supposedly rich resort retirement towns like Boca Raton are feeling the pinch. Giving away land or charging perhaps a small fee would ally tremendous costs, including all the lawn maintenance fees public lands require. More people may up the cost of services, but Beatrice, Neb., believes the property tax will handle those costs.
What will become of those tax-free non-profits?
Small towns the likes of Manchester, N.H., and Concord, Mass., are one step away from introducing the tax man to their non-profits. Non-profit organizations which were typically given tax-exempt status are under evaluation by city leaders. Considering that 15 percent of Concord is taken up by tax exempt structures, there are many potential costs that could possibly be made up. Will the time come for tax-exempt organizations to serve their communities via tax contribution? Private schools, churches and numerous other organizations could come into question. More and better sources than the New York Times have inveighed long and hard for this to happen.
Beatrice welcomes homesteaders once more
Perhaps it is appropriate how the Nebraska town is drawing attention to the property tax issue. The National League of Cities predicts a dire tax shortfall for America, so possibly a return to homesteading is needed for financial purposes. The NLC study found that property tax, sales tax and state aid will experience deficits of $ 55 billion to $ 85 billion by 2012. Such shortages will demand action. Bringing new homesteaders to Beatrice, Neb., and other small towns would likely mean new and improved homes, which benefit the values in existing neighborhoods nearby.
Making sense of the dollars
There are critics that question whether a town like Beatrice, Neb., should be able to give free land to just anyone. However, as Graton Mayor Tom Thompson told the Times, “What is the value of a lot to us if it is empty?” When the reality is harsh, a simple and direct solution – a la Occam’s razor – is typically best.
Further reading
nytimes.com/2010/07/26/us/26revenue.html?_r=2 and amp;hp
