Special tax districts of limited use, increase burden
Carl E. Herd
Another half percent sales tax. But, you do not get to vote on it. However, there is something you can do. Read on. The Commercial Street CID (Community Improvement District) was scheduled for first reading at last night's Springfield City Council meeting.
Springfield already has seven other special tax districts:
1. James River Commons - 1 percent
2. Airport Plaza - 1 percent
3. Heer's Tower - 1 percent
4. College Station - 1 percent
5. Northwest Area - 1/2 percent
6. Downtown Springfield - 1/4 percent
7. WOW Museum (BassPro) - 1/2 percent
Therefore, the claim that Springfield has a low tax rate of 6.85 percent is not the whole truth. These questions should be asked:
1. Does Springfield treat its taxpayers equally? Is it too much to expect that when you spend money in Springfield you should pay the same sales tax rate, regardless of where you shop.
2. Should all business owners have a level playing field? As long as there is not a lot of publicity that certain areas of Springfield charge more tax; then those businesses would not be adversely affected. (Or if it is a wholesale business.) To be fair to all shoppers, signs should be required which clearly state the amount of the higher tax at the front entrance and at the cash register. This would alert customers they are indeed paying a higher tax.
3. Will this tax have an adverse effect on future sales tax proposals? As a member of the Police-Fire Pension Fund Citizens Task Force a $200 million deficit means money must come from somewhere. A sales tax of 1 percent was voted down on Feb. 3 of this year. The task force is working very hard to solve this problem. Next February (2010) the 1/4 percent CIP (Capital Improvement Plan) Sales Tax may be on the ballot for renewal. A 1/4 percent parks tax could be on a future ballot or not.
4. What will this 1/2 percent sales tax accomplish? It can only fund the following types of activities.
A. Marketing and public enhancements
B. Establish a public transportation linkage with center city
C. Maintenance including landscaping, trash and snow removal
D. Business recruitment and retention
E. Holiday lighting, installation and maintenance
F. Administrative costs
Commercial Street already has a TIF (Tax Increment Financing). Why add taxes on top of taxes?
5. Which businesses will collect the additional tax burden? They include a grocery store, fast food, flea markets, appliance stores, restaurants and a lumber yard.
6. Which establishments will not collect any taxes? Therefore, they do not have any skin in the game. This includes the massage school, wholesale, lofts, residential manufacturing and approximately 23 vacant buildings.
What can you do? Contact council members and express your feelings about this 1/2 percent sales tax. Secondly, you can vote with your shopping dollars. If you don't support the charging of higher taxes in specific areas, be an educated citizen and don't shop there.
In conclusion, we all lose if more taxes will do more harm than good. If this tax turns shoppers away and the retail business cannot survive, how many more vacant buildings will appear? Many people recognize that Commercial Street is already a fragile environment for business.
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