If you give land away, people will build. At least that’s the theory. People have come to Beatrice, Neb., since 1862, when the Homestead Act first parceled out land to pioneer farmers. Times were simpler then. Today, town officials have drawn up their own Homestead Act of 2010 within the hopes that giving away basically free land will generate real estate tax revenues to bolster the town’s cash reserves. The New York Times reports that towns like Beatrice, Neb., can no longer make any open public land a part; they need tax revenue.
Small town America should follow Beatrice’s example
The Times indicates that this tax revenue move may be just what small town America needs. Quite possibly supposedly rich resort retirement towns like Boca Raton are feeling the pinch. Giving away land or charging even a small fee would ally tremendous costs, including all the lawn maintenance fees public lands require. More residents would mean greater cost to extend services, but the hope is the property tax revenue will make up for that.
Does that non-profit deserve to be tax-free?
In other budget drive activities, towns like Concord, Mass., and Manchester, N.H., are wondering going following the tax exempt status of their non-profits. The budget shortfall has to be made up in some way. Fifteen percent of Concord’s real estate is made up of such tax-free structures. At what point will organizations that benefit society have to do more in order to keep their communities afloat? Schools, churches and other groups that traditionally evaded taxes may be forced to comply by the nation’s current economic reality. 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. Clearly a figurehead is needed, if the National League of Cities’ recent findings are accurate. 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. New with new and improved homes would also raise property values around town, which would be yet another benefit of the homesteading movement.
Dollars make sense of this problem
Vocal critics wonder if a city should have the power to give out free land to any “non-taxpaying outsider who asks”. But perhaps the more persuasive stance comes from one town mayor, who asked the Times, “What’s the value of a lot to us if it’s empty?” Harsh realities often require direct solutions.
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