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Fw: [LandCafe] Fwd: CTOD Articles | January 22, 2008| A Land Tax for Transit

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  • Wetzel Dave
    Nb DT= Down Town (Our London Congestion Charge only applies to Central London). Best Wishes, Dave Dave Wetzel Vice-Chair TfL Tel: 020 7126 4200 ... From: Bob
    Message 1 of 2 , Mar 1, 2008
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      Fw: [LandCafe] Fwd: CTOD Articles | January 22, 2008| A Land Tax for Transit

      Nb
      DT= Down Town
      (Our London Congestion Charge only applies to Central London).

      Best Wishes,
      Dave

      Dave Wetzel
      Vice-Chair TfL
      Tel: 020 7126 4200
      --------------------------

      ----- Original Message -----
      From: Bob Deboer <bdeboer@...>
      To: Wetzel Dave
      Sent: Fri Feb 29 23:40:09 2008
      Subject: RE: [LandCafe] Fwd: CTOD Articles | January 22, 2008| A Land Tax for Transit

      Sure thing Dave.



      I attended a session that you spoke at here in Minnesota a couple of years ago and really enjoyed it. We are working here on pushing a Minnesota model of congestion pricing. We like to call it “free-flow pricing.” Rather than use it to enter the DT areas as London has done, we are starting to use it as one choice within a congested corridor of our highway system. Solo drivers get the choice to pay to travel in a free-flow lane where the price is varied to maintain 55 miles per hour.



      I love to hear about innovations in transportation finance as that is a key area of work for the Citizens League right now.



      Bob DeBoer

      Director of Policy Development

      Citizens League

      651-293-0575 ext. 13

      ________________________________

      From: Wetzel Dave [mailto:Davewetzel@...]
      Sent: Friday, February 29, 2008 5:15 PM
      To: Bob Deboer
      Subject: Re: [LandCafe] Fwd: CTOD Articles | January 22, 2008| A Land Tax for Transit



      Cheers Bob,
      Cheers
      Many thanks for copying me in.

      Best Wishes,
      Dave

      Dave Wetzel
      Vice-Chair TfL
      Tel: 020 7126 4200
      --------------------------

      ----- Original Message -----
      From: Bob Deboer <bdeboer@...>
      To: ElkinsEcon@... <ElkinsEcon@...>; Wetzel Dave
      Cc: jwood@... <jwood@...>; Rich.Nymoen@... <Rich.Nymoen@...>; mhaveman@... <mhaveman@...>; larix001@... <larix001@...>; adams004@... <adams004@...>; munni001@... <munni001@...>; johns003@... <johns003@...>; Sean Kershaw <skershaw@...>
      Sent: Fri Feb 29 22:18:58 2008
      Subject: Re: [LandCafe] Fwd: CTOD Articles | January 22, 2008| A Land Tax for Transit

      Hi Steve:



      Thanks for sending around the language on value capture. I would note that the key language is “financing new and improved transportation infrastructure in Minnesota through capturing the value of the benefits created.”



      This language opens up very broad potential for how CTS can perform the study. Here are the key points from the Citizens League perspective.



      Value Capture must be applied broadly to all types of transportation infrastructure whenever land value increases are appreciable enough to act as an efficient financing source for the project. Value capture should not be limited to a particular mode (i.e. rail transit). New and improved road infrastructure (interchanges, bridges, expansions) and other modes (BRT, monorail, PRT, etc.) must all be evaluated when projects are considered. This is important for balancing the use of value capture in our transportation system. This will balance the impact between use of value for transit infrastructure in the developed areas and road infrastructure in the developing areas. Other property tax use for transportation should be reduced and replaced with more transparent funding sources (user or beneficiary fees, etc.).



      There are at least two types of mechanisms that the study should consider.



      1.) Capturing the property taxes from the incremental increase in land value that is attributable to the transportation improvement. This is the type of calculation that we commonly do for tax increment financing (TIF). Here, we would only want it to apply to the value of the land and not the value of any improvements. Value capture should not act as a disincentive for redevelopment



      2.) Applying what the Citizens League calls a “benefit receipt tax” that is a one-time tax based on the increased land value at a point-of-sale. In last Sunday’s Star Tribune, there was an example of a land sale based on a highway improvement where the assessed value was in the $500,000 range and the land sold for over $3 million. A six-fold increase over the assessed value is certainly the level of benefit that should help pay for the transportation improvement. Maybe anything over a two-fold increase could be assessed in these situations and perhaps a benefit receipt tax could be applied based on a percentage of the amount above the assessed value or the amount above twice the assessed value. This would be a very interesting mechanism to study.



      This is going to be a very interesting study opportunity.



      Bob DeBoer

      Director of Policy Development

      Citizens League

      651-293-0575 ext. 13

      www.citizensleague.org <http://www.citizensleague.org/>

      ________________________________

      From: ElkinsEcon@... [mailto:ElkinsEcon@...]
      Sent: Friday, February 29, 2008 10:30 AM
      To: Davewetzel@...
      Cc: jwood@...; Rich.Nymoen@...; mhaveman@...; larix001@...; adams004@...; Bob Deboer; munni001@...; johns003@...
      Subject:



      Dave,



      The State Transportation Finance bill that was passed into law in Minnesota earlier this week includes a provision that funds a study of the idea of using Value Capture to finance transportation projects.  The study will be conducted by the Center for Transportation Studies at the University of Minnesota:



      6.1    Sec. 6. VALUE CAPTURE STUDY; APPROPRIATION.
      6.2    Subdivision 1. Findings. The legislature finds that large public investments in state
      6.3transportation infrastructure, such as constructing freeway interchanges, new highways,
      6.4and rail transit stations, can result in surrounding private land and other property increasing
      6.5in value, sometimes by substantial amounts. The special assessment law, Minnesota
      6.6Statutes, chapter 429, provides a method for local governments to use similar private or
      6.7special benefits to help finance local streets, roads, and other transportation improvements.
      6.8However, the law does not provide the state with a similar financing mechanism and
      6.9the nature of a large state transportation project may suggest that alternative financing
      6.10mechanisms are more appropriate.
      6.11    Subd. 2. Appropriation; study. $325,000 is appropriated from the general fund to
      6.12the Board of Regents of the University of Minnesota for the Center for Transportation
      6.13Studies to complete a study to assess the public policy implications of financing new and
      6.14improved transportation infrastructure in Minnesota through capturing the value of the
      6.15benefits created, to prepare a report on its findings, and to conduct a series of workshops.
      6.16This is a onetime appropriation and is available in fiscal years 2008 and 2009.
      6.17    Subd. 3. Report; workshops. The Center for Transportation Studies must report
      6.18its preliminary findings to the legislature by March 1, 2009, and must issue its full report
      6.19by July 1, 2009. The Center for Transportation must also offer a series of educational
      6.20workshops for elected officials during the summer and fall of 2009.
      6.21EFFECTIVE DATE.This section is effective the day following final enactment.

      All of the folks who I've copied on this note are interested in this topic and are liable to be involved in this study in one way or another.



      Regards,
      Steve Elkins
      Bloomington, MN City Council, District 3
      8709 Sandro Rd
      Bloomington, MN 55438-1228
      612-578-2103 Cell
      952-835-2118 Home
      952-835-2118 Fax (Call Ahead)





      In a message dated 2/28/2008 7:36:59 A.M. Central Standard Time, Davewetzel@... writes:

              Cheers Steve

             

              Very useful for me!

             

              I’m speaking today at a major rail conf on land value tax paying for railways.

              Dave

             

              Dave Wetzel,

              Vice-Chair, TfL

              020 7126 4200

             

             

              -----Original Message-----
              From: LandCafe@yahoogroups.com [mailto:LandCafe@yahoogroups.com] On Behalf Of elkinsecon@...
              Sent: 28 February 2008 00:05
              To: LandCafe@yahoogroups.com
              Subject: [LandCafe] Fwd: CTOD Articles | January 22, 2008| A Land Tax for Transit

             

              FYI

             

              Regards,
              Steve Elkins
              Bloomington, MN City Council, District 3
              8709 Sandro Rd
              Bloomington, MN 55438-1228
              612-578-2103 Cell
              952-835-2118 Home
              952-835-2118 Fax (Call Ahead)

             

                      ________________________________

                                      From: jwood@...
                      To: elkinsecon@...
                      Sent: 1/22/2008 2:11:13 P.M. Central Standard Time
                      Subj: CTOD Articles | January 22, 2008

                     

                                      Blogosphere: A Land Tax for Transit?

                             

                            
                      Heartland Institute

                      We can avoid these difficulties by taxing the value of land. A land value tax is like the real estate tax we all know, with at least one important difference: All buildings and other improvements are entirely exempt from taxation. Only the value of the land itself is taxed. If you own a home, you would pay no tax on the house under land-value taxation. The tax on your land would be based on what the land would be worth if it were vacant. A land tax isn't regressive because many poor people own no land at all, and if they do own land it is of relatively low value. A land tax can't be evaded because land is visible and real estate tax information is public. A land tax for transit is fair because transit service increases land values and those who benefit the most pay the most. And a land tax can't drive away jobs because it isn't a tax on economic activity. $40 Annual Tax Hike How much would a land tax cost the average homeowner? The answer depends on how much revenue is needed. The Henry George School study estimates that to generate $400 million a year--enough to avoid Chicago's transit "doomsday" service cuts for years to come--would cost an average homeowner about $40 a year. It's likely to be a lot less expensive than a sales tax increase. Although I'm not aware of any public transit service subsidized exclusively from land value, several transit services do obtain funds from a real estate tax, and some have benefited by selling land after its value has increased. In Japan, private railroads provide passenger service funded, in part, by the increased value of lands the railroads own.

                      Read on... <http://rs6.net/tn.jsp?e=001kcsKDDAn1pta8oS5nfw7UHwqIpu7JtC4tsK6vdXMrGgTAEBXDB8_ojkDNYh4s6wjr2JytE2KNUzFXgJmNij_FLRTZVtHiEbfjhxvuy4rYb3j3FK0bA9YvwYIcChSLQQAsxejohvLhtxiHUdEnYqp8w==>

                            

             

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      ________________________________

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