Tricks Of The Trade And Your Tax Rate

Many units of government employ various “methods” to hide tax increases and large spending increases. Awareness of these methods can help you ask the right questions to determine if your local government is guilty.

It’s Not Our Fault
Many local units of government simply blame someone else for the property tax increases they approve. They cite a list of mandates, lost aid, cost increases and other situations that they claim are out of their control.
Counter Argument: Local units of government are independently elected and locally accountable. They have been given the power to tax and spend. They are ultimately responsible for their taxing and spending decisions.

The “No Increase in the Tax Rate” Argument.
The tax rate is the percentage of property value that is taxed. Some governments take advantage of rising property values by keeping the tax rate flat but drawing more tax dollars from the property due to an increased assessed value. They then claim a victory on behalf of the taxpayer by proclaiming that tax rates weren’t raised.
Counter Argument: Ask elected officials what the tax levy rate would have been to keep spending flat. Ask why that lower rate wasn’t adopted.

Debt Service “Bait and Switch”.
In this scenario, a local unit of government issues bonds to pay for a particular project. Taxes are sometimes raised to cover the cost of paying off the debt. Much like a home mortgage, the debt is paid off over time. However, once the debt is paid, the local government diverts the debt payments into other accounts instead of eliminating the tax increase that was used to pay off the debt.
Counter Argument: Ask your elected officials what debt is outstanding or recently retired. Ask these officials to explain the debt service plan. If debt has been recently paid off, ask how that debt was financed.

Does this sound familiar? For more information link HERE
From The Anoka County Watchdog.
8/8/2008
"Over the past three years, the Watchdog has been proud to inspire other blogs and web sites dedicated to fiscal accountability and good government. We’re happy to give props to other web sites and blogs out there in Anoka County that are working hard to protect taxpayers. If you know of one, send it our way.
In the meantime, check out these folks in Centerville."
http://centervillemn.blogspot.com/