Ogden Valley Forum Articles and Documents

Friday, October 19, 2007

Thoughts/notes from Wingmen meeting yesterday at the Capital (continued)

Our Representative Gage Froerer was one:

-His resubmitted Property Tax Deferral - for Senior Citizens, is considered DOA by Wingmen.
-Circuit Breaker increased limits is appropriate but not anticipated to be effective.
-Property Tax Residential Exemption, enable more than one acre where local ordinances require more is understood but could be passe if more comprehensive reforms are made.
-School District Funding, provide SITLA funds and require school district to lower its tax levy by same amount. Actually sounded almost on target, but it falls short of asking for alternative funding sources like sales taxes, head taxes or user fees since all our income taxes are in fact "school taxes" already. Still I was somewhat proud of Gage's comments; "Policy not broken but needs to be tweaked."(although I disagree and believe it is broken). Gage expressed a procedures concern over garbage in, garbage out. Referring to presentations encouraging $10,000,000 upgrades to new SIGMA computer systems with $1,250,000 yearly upgrades for every County. And throw even more money to assess.

We want a simplified, not a more elegant or elaborate, taxation system. Or at least I (Machman) think we do...

Wingman Bert Hulet had graphs and charts which he effectively used to lobby for his simplified property taxation system. He uses an average of assessed values from 2000 until 2005 to come up with a base assessment from which only Government Cost of Living Adjustments percentages are added annually to arrive at market value. As for newly built homes the builder and assessor must derive the initial market value from the actual costs of construction. His engineering approach samples residences in 8 Counties and says market value with all its spikes and troughs actually ends up with following the COLA adjusted figures. He offers a smoother ride to the same results in market value without having to change the State Constitution wording. He also spoke in the two minute time allotment supporting this system.

Ron Mortensen, CitizensForTaxFairness.org and Wingman, also spoke out for a simplified tax system more fair to taxpayers and excoriated deferred property tax schemes for seniors as totally unsupportable.

The second came from Senator Niederhauser:

-Require approval of electorate before adopting a tax rate which exceeds a certified tax rate. But we (Wingmen) agreed a super majority vote of 60% and a minimum voter participation of 50% should be added to preclude off season elections, where only 8 or 10% participation commits us to over taxation. As is frequently (and we believe unethically) done with School Bond elections, etc. Still his concept holds promise if properly legislated.

And another proposal by Representative Craig Frank also held some interest:

-Property Tax - Valuation Base, base property tax on square footage of the improvement (home) and acreage of the real property (regardless of location or market value). This is an idea on which Lance Wakefield (one of our Wingmen) has worked diligently. It at least offers an alternative to the way we are currently being fleeced by Realtor Association driven current market value schemes and racketeering for 6%.

In our caucus I mentioned "another bone" which could be tossed to "shift" tax burdens more equitably would be to review, audit and/or change the State Green Zone or FAA AG-classification. Or at a minimum correct gross disparities with how is is actually being practiced and significant tax evasion many seem to be enjoying for many years now. Again this may vary between the competencies of County Assessors, but to tax payers this is a taxation travesty.

The following are offered as samples taken from random within the local area:

226.5 acres Market Value $5,663,250 Taxable Value $3,171 @ .011102 (CTR applicable)
TAX $35.20

205.6 acres Market Value $205,600 (?) Taxable Value $2,878 @ .011102 (CTR applicable)
TAX $31.95

122.19 acres Market Value $794,190 Taxable Value $1,711 @ .011102 (CTR)
TAX $19

157.79 acres Market value $1,025,590 Taxable Value $2,209 @ .011102 (CTR)
TAX $24.52

So with this local random sampling of Farmland Assessment Act, Agri. Land classified or Green Belt designated property, we have $7,688,630 Market Value land taxable assessed at only $9,969 and on which an aggregate total tax bill is only $ 110.67. In truth this is pure investment property in one of the "hottest land markets in the State" if not the USA.

Let me repeat for emphasis...investment land (712.1 acres) worth conservatively $7,688,630 (about $10,800/acre) is taxable assessed at $9,969 ($14/acre) and the total taxes paid on it is $110.67 (or 15 cents an acre). This while we are homeowners being asked to pay based upon assessed market valuations of $200,000/acre or more.

See attached State Green Belt regulations which have been so relaxed (deregulated) land owners can easily hide from the taxes they should legitimately be paying.

And suggested in our coalition caucus- that an audit of FAA-Agri. land be done. And the resultant "windfall of taxes recouped" and penalties be pledged or put in a lock box toward a Schools Tax. Our "State Income Tax" should be renamed a Schools Tax anyway. And the recouped taxes should be earmarked as replacement funds for the 55 to 75% of school district funds stripped out of residential Property Taxes. Using Property Taxes for a collection device for every leech or service is not appropriate. Residential and business "Property Taxes" should either be abolished (as in Washington State) or at minimum made to reflect actual value based upon acquisition value taxation of a property and only a property. With no attached EM, 911, Library, Mosquito, Fire, Welfare, Health, Water Conservancy Districts, etc. and other necessary services, but unrelated to exclusively residential PROPERTY owners. These services are used by everyone and everyone should be involved with paying for them.

Gentlemen/ladies, it seems we have come full circle from 1776 to 2006. Large land owners have successfully "shifted" their tax burdens onto you and me as individual home owners. Just as have some inappropriate "Centrally Assessed Properties/Corporations" have succeeded in doing. Public cynicism and distrust over this alone is enough to cripple our Great State economy unless immediate corrective action is taken.

Namaste,

D-Bell
Wingmen for Property Tax Reform

Still searching for the landowner with acreage on the border. Morgan Co. assessed @ $500/acre and Weber Co. assessed at $5,000/acre. Same Agri. class land. How do we "shift" from Weber Co. to Morgan Co. here in the Huntsville Town and Zip Code? The whole Valley? I do not feel we would miss anything "service wise" except for perhaps the fire district/protection. What does Weber County do for us besides tax the hell out of us to pay for their Building lease and personnel salaries?