(May-June 2009 GroundSwell)

 

 

 

    The Connecticut Legislature has passed Senate Bill 379 and sent it to Governor Rell?s desk, reports Josh Vincent of the Center for The Study of Economics.  SB 379 is a pilot program which can only be used by one municipality in CT - New London.

 

    CSE and the Re-New London Council had put together an impressive coalition of supporters.  That included New London's mayor and former mayor, City Council, Landmarks, Main Street, and "Day" newspaper.  It also included New Haven's mayor and Hartford's Metro Alliance and Preservation Alliance, plus Stamford's Urban Redevelopment Commission.  Additional backers included Connecticut's Conference of Mayors, Forest and Park, Farmland Trust, Homebuilders Assn., and Sierra Club.  Further supporting the bill was AFSCME Council 4 and the Farmington River Watershed Assn.

      Special recognition for local efforts goes to Art Costa, President of the Re-New London Council.  (See his testimony reprinted in the Jan.-Feb. 2009 GroundSwell.)  (Art Costa may be emailed at a.costa@ovaperformancemngt.com.. CSE?s website is  www.urbantools.org.) << 
  

 

 

      Jeff Smith, Lagrande, OR, reports that as it has ever since the CGO met in Oregon in 1998, the state legislature again has a bill to allow local option for shifting the property tax.  HJR 47 was introduced by freshman Rep. Jules Bailey.  He was successfully lobbied by Kris Nelson, who volunteered on the 1998 CGO conference in Portland, and Tom Gihring, PhD, vice president of the NW chapter. Unfortunately, the bill did not have a hearing as fundamental reform was pushed to the back burner by bills to deal with the "crisis"; which, actually, fundamental reform like geonomics would've dealt with admirably.  Jeff is the editor of the Georgist News, president of the Forum on Economics, and chair of the NW (OR/Wash.) Chapter of Common Ground-USA.   (Jeff Smith may be emailed at jjs@geonomics.org.)
 

    House Joint Resolution 47, sponsored by the Committee on Revenue, has the following provisions.
    

     "A city or county may adopt a site value taxation system in lieu of the uniform ad valorem property tax system, if the voters of the city or county approve the system . . . All local taxing districts within the jurisdiction adopting a site value taxation system shall implement the system. ...
     

    "A jurisdiction adopting a site value taxation shall set an annual land tax rate ratio, defined as the proportion of the total rate that applies to land assessments.  The remaining proportion shall determine the rate applied to improvement assessments.  The annual differential tax rates apply to all taxing districts within the adopting jurisdiction.

 

     "All taxable parcels of the same class, as defined by land use, must be taxed at the same differential rate. . . .

     "The tax rate on improvement assessments may not equal or exceed the tax rate on land assessments.

 

     "A measure submitting the question of whether to adopt a site value taxation system to voters of the city or county may be referred by resolution of the local governing body or by initiative petition.  The measure may be voted on only at a general election. . . .

     "The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next general election held through this state." <<
   
 
NEW YORK CITY COMMON GROUNDERS SUPPORT LEGISLATION
 
      Rita Rowan, chair of the Common Ground NYC chapter of Common Ground-USA reports that the Manhattan Borough President has launched an anti-warehousing campaign to reform the property tax system in New York City that inadvertently encourages holding land and buildings out of production for speculative purposes.  The system has destructive consequences and rewards those whose speculative actions exploit the values attached to the city's land without returning any benefit to the people.  (Rita may be emailed at rgrowan@verizon.net.)

 

    City Council Bill #694 provides for an annual survey of vacant and underused properties in the five boroughs.
 

     City Council Bill #693 provides for the registration, annually, of vacant and underused properties and allows the city to fine property owners if they are not in the process of developing or selling these vacant/underused sites.

 

    State Senate Bill #6207 provides for redefining the Class 1 tax category to eliminate from the definition of this class properties above 110th Street to omit vacant and underused sites which currently get a huge tax break.  It has also been introduced in the State Assembly.

      State Assembly Bill #9371 provides for a fifth property tax class for vacant/underused sites that allows for a higher tax on these properties (an anti-warehousing initiative).

 

      The bills are only the beginning of the effort to reform property tax laws and pave the way for a shift of the tax burden from building to land.  Chapter members are urged to call the office of the Manhattan Borough President or local or state representatives in support of the bills.  <<
 

    (postscript:  SB #6207 has since been passed.)