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New petition for NY State to replace Property Tax with Ground Rent

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  • Scott Baker
    Hi all; A week or so ago I made a request for letters to be sent to Governor Cuomo to prevent the wrong-headed cap on property taxes, ala the disastrous
    Message 1 of 2 , Feb 1, 2011
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      Hi all;

      A week or so ago I made a request for letters to be sent to Governor Cuomo to prevent the wrong-headed cap on property taxes, ala the disastrous proposition 13 in California.  Not many of you responded, so I am going to try another approach by creating an e-petition here:
      http://www.change.org/petitions/replace-property-tax-with-ground-rent?share_id=bEhWnSTbAE&pe=pce

      It'll just take a minute and you just might save a state from financial ruin!  And save most people money too.

      Once you're done, please ask your friends to sign the petition as well. Grassroots movements succeed because people like you are willing to spread the word!
       
      Scott Baker - Op Ed News Journalist/Senior Editor; Huffington Post Blogger; Author; President: Common Ground - NYC
      ; NY State Coordinator: Public Banking Initiative

      P.S. Don't forget our other fine petitions below:

      Petitions:
      -- Set up a Land Value Tax & untax ALL productive activities to make California Healthy, Wealthy, and Prosperous
      -- Replace Property Tax with Ground Rent in New York State
      -- Set up a State Bank For Florida
      -- California Dreaming: Set up a State Bank with abundant CAFR funds
      -- Complete the East Side Manhattan Greenway from 38-61 Streets and save bikers, help the environment, and clear up traffic
      -- Tax Vacant & Unused Land to Return its value to the Community
      -- Untax Production and Wages while taxing the use/abuse of natural resources. Polluters pay while workers and entrepreneurs profit from true production
      -- Close New York State's budget Gap with money from its own agencies by setting up a State Bank


    • Scott Baker
      Steven: I ll put that in my cover letter - to be written - to the Governor. It is, I think a bit too complex for an online petition aimed at general
      Message 2 of 2 , Feb 1, 2011
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        Steven:

        I'll put that in my cover letter - to be written - to the Governor.  It is, I think a bit too complex for an online petition aimed at general audiences, though anyone can edit their letter before sending it out, so I guess you could add that if you want to.

        From: steven cord <stevencord2000@...>
        To: Scott Baker <ssbaker305@...>; LandCafe@yahoogroups.com; TaxShift@yahoogroups.com; chicagogeorgiststalk@yahoogroups.com; public-banking@...; common-ground-nyc@...
        Cc: Scott Baker <ssbaker305@...>
        Sent: Tue, February 1, 2011 10:40:41 AM
        Subject: Re: New petition for NY State to replace Property Tax with Ground Rent

        Scott:
         
        An 8% LVT is 100% correct philosophically but 0% politically.  It will never be accepted.  Rather, ask for the right of localities to reduce the property tax on building assessments by 10% and a concurrent increase in the LVT property-tax rate in order to maintain local revenue-neutrality - or any of the other LVT proposals mentioned in this:

        7 WAYS TO START ENACTING A LAND VALUE TAX

        (This list is meant only for LVT advocates who need to know how to actually implement land value taxation; choose one or two.  It is absolutely NOT meant for the current politicians or voters (they would find it much too confusing.)

                    (1) Land Should Be Assessed Closer to Market Value than Buildings.  Often, the reverse is true (in violation of the law).

        (2) Propose a Two-Rate Property Tax – Levy a higher tax rate on land assessments than on building assessments, using these formulas: (a) PBTR (proposed building tax rate) = 80% x CBTR (current building tax rate); a percentage other than 80% can be used.  PLTR (proposed land tax rate) = CBTR – PBTR, x BA/LA, + CLTR (current land tax rate); BA is total building assessments and LA is total land assessments.  (b) If the revenue is known, use this formula: PLTR = Revenue – (BA x BTR)/LA. 

        (3) Propose a 3-Rate Tax – Levy three separate property-tax rates: a higher rate on residential land, lower rate on residential buildings, a third rate on non-residential properties.  This will achieve revenue neutrality.  Set the third rate first (about at what it is now), then set the other two rates; in the following years, decrease the building-tax rates by no more than 20% (probably less) per year while maintaining revenue-neutrality.  

        (4) Propose a Reduction of Perhaps 20% or $20,000 on Building Assessments (AXI).  Maintain revenue neutrality by increasing the property tax rate on land only.  Most property owners would pay less tax because their reduction would exceed their higher property tax.  All renters (both residential & office) would pay less space rent because there’ll be less building tax passed on to them and in the long run the land tax can never be passed on to them (because the supply of land is fixed).

                    (5) Propose a Separate Tax on Land Assessments Only in order to fund either a new expense or a reduction in either the current property tax or some particularly disliked tax.  Most voters will pay less with this tax than with any other major tax.  

                    (6) Apply #1-#5 Above Just to a Particular Section of a Jurisdiction (perhaps a Particular Ward, New Construction, or Desirable Project).  Then compare its economic growth (via BPI - building permits issued) to the rest of the city.

                    (7) Exempt renovations from the property tax; pay for them by increasing the property tax on land assessments, or even by increasing the property tax rate.

         

                      

        Be absolutely sure to prove LVT works well by citing increases in BPI.  Perhaps specify that no property owner need pay more than an annual 3% increase plus BLS inflation rate.  For more information, contact Steven B. Cord, Professor-Emeritus IUP (15,000 students, near Pittsburgh) now Research Director,

         Center for the Study of Economics, 10528 Cross Fox Lane, Columbia MD 21044 (DC suburb),

        410-997-1182, stevencord2000@...

         

        Peer-Review

                   Professor Nicolaus Tideman of Virginia Tech University and his graduate student, Florenz Plassmann (now a professor at the University of Binghamton) completed a highly technical study of land value taxation as used in the Pennsylvania cities using such a tax; it was entitled “A Markov Chain Monte Carlo Analysis of the Effect of Two-Rate Property Taxes on Construction.”  It was peer-reviewed and published in the Journal of Urban Economics (3/00, pp. 216-47).  It concluded (bold italics added):

                    “The results say that in all four categories of construction, an increase in the effective tax differential [between land and buildings] (1) is associated with an increase in the average value per permit.  (2) In the case of residential housing, a 1% increase in the effective tax differential is associated with a 12% increase in the average value per unit. 

                    “From the perspective of economic theory, it is not at all surprising that when taxes are taken off of buildings, people build more valuable buildings.  But it is nice to see the numbers.”

                    This study confirmed all the Pennsylvania studies completed when this study was done (then 15, now 20).  Hundreds more empirical studies are available for the asking (free, no obligation).            

         

         ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~> Steven Cord



        From: Scott Baker <ssbaker305@...>
        To: LandCafe@yahoogroups.com; TaxShift@yahoogroups.com; chicagogeorgiststalk@yahoogroups.com; public-banking@...; common-ground-nyc@...
        Cc: Scott Baker <ssbaker305@...>
        Sent: Tue, February 1, 2011 4:49:50 AM
        Subject: New petition for NY State to replace Property Tax with Ground Rent

        Hi all;

        A week or so ago I made a request for letters to be sent to Governor Cuomo to prevent the wrong-headed cap on property taxes, ala the disastrous proposition 13 in California.  Not many of you responded, so I am going to try another approach by creating an e-petition here:
        http://www.change.org/petitions/replace-property-tax-with-ground-rent?share_id=bEhWnSTbAE&pe=pce

        It'll just take a minute and you just might save a state from financial ruin!  And save most people money too.

        Once you're done, please ask your friends to sign the petition as well. Grassroots movements succeed because people like you are willing to spread the word!
         
        Scott Baker - Op Ed News Journalist/Senior Editor; Huffington Post Blogger; Author; President: Common Ground - NYC
        ; NY State Coordinator: Public Banking Initiative

        P.S. Don't forget our other fine petitions below:

        Petitions:
        -- Set up a Land Value Tax & untax ALL productive activities to make California Healthy, Wealthy, and Prosperous
        -- Replace Property Tax with Ground Rent in New York State
        -- Set up a State Bank For Florida
        -- California Dreaming: Set up a State Bank with abundant CAFR funds
        -- Complete the East Side Manhattan Greenway from 38-61 Streets and save bikers, help the environment, and clear up traffic
        -- Tax Vacant & Unused Land to Return its value to the Community
        -- Untax Production and Wages while taxing the use/abuse of natural resources. Polluters pay while workers and entrepreneurs profit from true production
        -- Close New York State's budget Gap with money from its own agencies by setting up a State Bank




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