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<div>On Sat, 15 Apr 2006 23:02 Sarah Wayland wrote.<br>
<br>
I just think there are some larger issues that need to be<br>
addressed by the state before this approach will be as effective as
it<br>
should be (e.g., fixing how the assessments of the land value are
made<br>
in the first place.)<br>
<br>
Jack here:<br>
</div>
<div>Amen to that Sarah. And it will be a long row to hoe. CSE/HGFA
began contacting the Governor and Legislature in 1995 to consider
replacing the state Sales and Income Tax with a Land Value Tax and
also to pass enabling legislation for the counties and Baltimore City.
Our previous main effort to get the Legislature to adopt State
enabling legislation was modified to getting counties enabled and to
getting the State and Municipalities to adopt LVT as a result of the
State's Attorney General ruling that it was Constitutional for the
State and Municipalities to set separate tax rates on land and on
improvements.</div>
<div><br></div>
<div>Anne Healey has been introducing enabling legislation for LVT for
the Counties. She would have a better chance of doing that if some
Municipality could summon the courage to actually, God Forbid, be the
first in Maryland to adopt LVT. Having empirical evidence from
Maryland could help the above changes occur more quickly. Having the
empirical evidence from Maryland is critical for change, as it seems
empirical evidence from Pennsylvania and the World at large is not
acceptable for making the decision in Riverdale Park, or in Maryland
in general. If human civilization sat around awaiting the most
efficient form of a new practice or technology before it would adopt
anything at all; we would make no progress...it is only by trying the
new, learning it, understanding it, and changing it...that it gets
more efficient and eventually leads to something else entirely new;
and the spiral continues (and that is the process for discovery of bad
things too such as the diseconomies of taxing production). To get a
real feel for this I recommend James Burke's<u> The Day the Universe
Changed</u> [book and PBS series] and his Connections I, II, III, and
I think also IV [BBC series] at the PGML Hyattsville.</div>
<div><br></div>
<div>In 1999 50% of the land value of Maryland could have eliminated
the sales tax and reduced the state income tax to 1%. The other 50%
would have been sufficient for counties and municipalities revenues
plus 15-20% of land value in reserves for other uses. And, it might be
mentioned that the taxing of use of other natural resources, such as
fuels, air waves, et cetera were not even considered though also a
potential beneficial source of government revenues.</div>
<div><br></div>
<div>My understanding in conversation with some people at the tax
office is that even though they are able to do accurate assessments,
there are annual 10% increase caps set by the legislature that prevent
the taxation of the full value of the land and improvements (keeps
people from being taxed out of house and home in one fell swoop). If
the assessed value is higher than the taxable value it is not brought
into effect until a sale and exchange of ownership. So that means the
assessments are dragging behind during realestate bubbles or actual
increase in value exceeding 10% per annum.</div>
<div><br></div>
<div>My $0.02 for today,</div>
<div>Jack</div>
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<div>"We have met the enemy, and he is us!" Pogo Possum<br>
http://theriverdaleobserver.blogspot.com</div>
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