3 ms·
That's what it sounded like to me. He said they'd take a block of 50k houses to turn into 55k houses which will pay more taxes (and since the area is poor it re
by exclusiv 10y ago
That's what it sounded like to me. He said they'd take a block of 50k houses to turn into 55k houses which will pay more taxes (and since the area is poor it requires less funds to service). So it's a better investment than affluent areas from a direct profitability metric.
Of course, the bump in those home's property tax revenue wouldn't drive other revenue like investing in making a downtown more upscale would: more local homeowner values (and property tax revenue), corporate business tax revenue, sales tax and tourist revenue. He brushes off simplistic arguments but his argument is simplistic as well - and he advocates for squeezing the poor! The poor would rather have lower taxes than a bump in home value.
> We see this trend everywhere we've done a model. On a per acre basis, neighborhoods that tend to be poor also tend to pay more taxes and cost less to provide services to than their more affluent counterparts. How is this possible? Some of my planner colleagues will say it is density..
Then he goes into how it's cheaper to service but really offers no argument about the density especially as it relates to the 2 photos he proposes as evidence (the 1.1M poor block vs the 618k affluent block - it's actually 803k on his other article). Clearly there are more structures and less parking on the poor block. The poor picture has this: "two liquor stores, a pawn shop, a barber shop, a bankruptcy attorney, a campaign headquarters, a retail establishment, a cafe and a vacant building." How can he shrug off density?
> Poor neighborhoods subsidize the affluent; it is a ubiquitous condition of the American development pattern.
Bold claim with no evidence. Perhaps he meant to say "poor neighborhoods are more profitable on a property tax basis than affluent neighborhoods"
- azernik 10y agoFor background, I read his article [1] on why density, so he argues, doesn't matter. Instead, he proposes a different metric - the ratio of private (i.e. productive, main property) investment to public (infrastructure/supporting) investment, which should be high; 20:1 or ideally much higher. However, most arguments for dense development are EXTREMELY relevant to this ratio - the idea being that dense development is cheaper, per unit population/economic activity, to build infrastructure for. Maybe it shouldn't be viewed as an end in itself, but it is a good heuristic. [1] http://www.strongtowns.org/journal/2015/12/16/best-of-2015-density-question http://www.strongtowns.org/journal/2015/12/16/best-of-2015-d...
- exclusiv 10y agoPerhaps his ratio makes sense but density is why that poor block example has a higher appraised land value than the single taco joint in the affluent area which is mostly parking. So his argument doesn't stand up in that case. Sure the poor block has a higher assessment and more property taxes unless those businesses got tax rebates for operating there. But that's just one revenue metric for the block.
- adolph 10y agoAnother problem with the author's assertions is that Louisiana in general has some of the lowest property taxes in the country. To the degree that this limits municipal revenue is the degree that a city can't spend a lot on infrastructure. Please don't take this comment as advocacy for a higher tax rate, simply recognition of the financial structure; you get what you pay for, or in the case of muni bonds what other people think future residents will pay for.