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2005 Workshop Reports -
Taxes and Public Revenue Discussion Forum
Introductions
Participants introduced themselves relating
their interest in taxes/public revenues. Many participants
confessed to seeking knowledge from the session rather than having a
knowledge base to inject into the discussion.
Prior to discussion, Carol Graf offered
clarification and resources.
- Regarding the reciprocal tax – this would
amount to a tax increase for Yellow Springs’ citizens working
outside the village. In order to change the tax, village council
would have to pass an ordinance requiring that ‘no matter where
you pay taxes, you have to pay a certain percent to Yellow Springs.
- Resources – State Tax Publications
- Brief Survey of Major State and Local Taxes
in Ohio
- Business Guide to Taxes
2004 Challenges Used as Starting Point for
Discussion
1) Village’s High Comparative Tax Base
2) Costs of Capital Improvements over 10
years.
3) Loss of Traditional Economic Base
Modifications to 2004 Challenges
A modification to Challenge 2 was suggested to
change 10 years to 20 years.
A modification to Challenge 3 was
"Replace Traditional Economic Base." It was generally agreed
that we have experienced significant loss of the traditional tax base.
Most of the suggestions did not identify
additional challenges. Instead, ideas were generated to treat the
overarching challenge of "Generate Revenue."
Generate Revenue
Three major thrusts emerged – advocacy,
replacement of lost revenues, and information needs. There were ideas
long-term and short-term solutions.
A. Advocacy to State
Grass-roots advocacy in addition to county,
township and village government. Let state representatives know that
reduction in funds to local government is the wrong direction to be
moving in.
B. Deal with the Results of Lost Revenues
- Set a goal of $500,000 (TBR) in new
revenues.
- Set a utilities revenue goal to generate
20-year replacement cost for infrastructure.
- Apply Business Case Analysis (cost/benefit)
to all potential new sources to determine whether the benefit is
the greatest that can be derived in the current environment with
the available resources and whether the outcome is in conflict
with the village values.
Suggestions for Investigation
1) Investigate in detail all bits and pieces
of taxes residents currently pay. Explore alternate ways and
measures to generate new income.
Example:
- Carol Graf looked in the Brief Survey of
State and Local Taxes to determine that a 3% lodging tax could
be charged. She was speaking both for existing businesses as
well as a rumored facility associated with Antioch McGregor’s
new facility.
2) Refining of existing non-tax revenue and
expansion. Fees of all kinds.
Approach: Inventory of tangible and
intangible value items in village such as its high education,
earnings demographics, its utility infrastructure, etc. and look for
opportunities to leverage those items in new ways.
Examples:
- Internet access to all Yellow Springs
residents via power lines. Provide same as other services. Fees
comparable to $20/month dial-up would be highly attractive.
Would be selling point for new businesses in Center for Business
and Education. Fee could be waived for introductory period (5
years?) as incentive for new businesses. Need to investigate
capital and operations costs.
- A used-computer co-op could be developed
in concert with this to enable universal internet access in
keeping with Education Village theme. Would also be a green
solution to electronics disposal problem.
- Investigate including marketing materials
with utility bills. Sent out to all residents. Leverages village
demographics for targeted marketers. Would require change from
current postcard billing to envelope-style billing.
3) Tax increases should turn a profit. How
can this be done?
Approach: Tax increase allows village to
"invest" in community in ways that generate returns.
Example:
- Investment in the arts. It was asserted
that there is an 8-1 return for every dollar spent on the arts.
Neither the municipality nor the county currently supports the
arts.
4) Provide incentives to educational
institutions to develop new business starts in the way Antioch did
in the past.
Approaches:
- Make use of Antioch McGregor’s
corporate relationships to encourage new business starts in
Yellow Springs. McGregor teaches adults and is in touch with
companies throughout the Miami valley.
- Revitalize Antioch College through a
community partnership that helps them to achieve goals that
leads to high academic standards.
- Make use of technology transfer
opportunities – collaborate with firms moving into village.
- Re-establish a "business
incubator" in Yellow Springs. State funds available.
Approach: Model on Edison Technology Center
Program
Example: Alternative energy generation. Fits
with Community Services Peak Oil concerns. Fits with Education
Village concept.
5) Research approaches taken by other
villages. Look for innovation and best practices.
6) Implement an income tax for all residents
regardless of where a resident works.
7) Reduce the amount of tax-exempt land in
the village and township. Turn a portion of this into taxable land.
Example:
- Antioch owns 216 parcels. Is a sale
possible?
8) Charge a naming rights fee.
Example: Is the village able to charge a fee
for the installation of memorials on
Village property?
9) Utility fees should be inclusive of operations and depreciation so
the real cost of utilities is captured as part of the billing process
and interest costs associated with capital improvement loans can be
avoided. Utilities should be completely self-sufficient.
10) Voluntary (sales) tax.
Discussion:
- Allow residents to pay additional sales
tax as donation to getting the Village back on its feet.
Recorder’s note: sort of like funding the base for the Statue
of Liberty.
- Retired residents don’t pay income tax
as a rule. Retirees in group didn’t feel it was fair because
they consume the same services, if not more, than prior to
retirement. Felt there should be a way to tax unearned income.
11) Village should sell energy efficient
products.
Approach: Reducing energy consumption use in
a period where growth is desired could be a cost avoidance measure
in the future to prevent the need for long-term capacity increases
to respond to new growth needs.
12) Match Revenue Use to Source
Example: Selling off infrastructure, such as
portions of the Glass Farm, should result in revenues that are
directly applied to infrastructure needs.
13) Increase local income tax to 2%.
14) Shift items that are taxed at federal
and state level into utility fees.
Example: Include garbage collection as
property tax or as a flat rate.
15) Use technology to improve village
efficiency and generate cost avoidance
Examples:
- Automate meter relating.
- Prepare for Real time pricing
(electricity)
- Demand side management.
16) Maintain high quality of education in
village.
Approach: Good schools are a growth enabler.
Builders want to build in regions with good schools because people
want to move there.
C. Information Needs
1) Information is needed on where taxes come
from and how they are utilized. Residents need to be able to
associate taxes with their application.
2) Emphasize cost and benefit.
3) What do people want from their taxes?
Give them what they want from their taxes.
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