Free land will always be a draw. At least that’s the theory. Beatrice, Neb., once provided public domain lands to pioneering farmers via the Homestead Act of 1862. Times were simpler then. Now small towns like Beatrice have formed their own Homestead Act of 2010 in order to dole out land to reap the benefits of real estate tax revenue. 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. If a traditionally well-off small town like Boca Raton is hurting, you know things are bad. Such small towns are giving away land for a nominal fee or perhaps free of charge, hoping that will bolster the city tax register and remove the burden of lawn maintenance from the town and place it upon the shoulders of private owners. More individuals may up the cost of services, but Beatrice, Neb., believes the property tax will manage those costs.
What will become of those tax-free non-profits?
Places like Manchester, N.H., and Concord, Mass., are pondering whether all non-profits should be exempt from taxes. Non-profit organizations that were typically given tax-exempt status are under evaluation by city leaders. Fifteen percent of Concord’s real estate is made up of such tax-free structures. Will the time come for tax-exempt organizations to serve their communities via tax contribution? Private schools, churches and charities provide value in the minds of numerous, but they have typically been free of taxation. More and better sources than the New York Times have inveighed long and hard for this to happen.
Beatrice, where homesteaders rise again
Where the homestead started is where it shall return. There needs to be a driver of this tax revenue movement, particularly if the National League of Cities’ recent study is as grim as it sounds. As outlined by the NLC study, American small towns could be within the red by as much as $ 85 billion on property tax, sales tax and state aid 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.
Dollars make sense of this problem
You will find critics that question whether a town like Beatrice, Neb., should be able to give free land to just anyone. But the more persuasive stance comes from one town mayor, who asked the Times, “What’s 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.
Additional reading
nytimes.com/2010/07/26/us/26revenue.html?_r=2 and amp;hp
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