Tuesday, October 6, 2009

A Rose Is A Rose

And a tax rate is a tax rate, except when it isn't.

If you read the story about the Gates Supervisor race in the Monday Democrat & Chronicle, you might think that Mark Assini stated that Gates' property tax rate is the highest in Monroe County. Actually, Mark McIntee said it, but that's beside the point.

It appears that the Gates Democrats want to focus on the tax rate in Gates rather than average or total taxes paid by Gates taxpayers. The implication is, of course, that we are over taxed in Gates.

The problem is that the taxes raised in a town are a function of tax rate and property values. A town with higher property values can raise the same total taxes as a town with lower values even though the first town has a lower tax rate. The lower tax rate does not mean that the town government is more efficient or thrifty; it means they have a bigger pool of tax money to swim in.

A good comparison can be made between Brighton and Gates. They are similar sized towns with police forces. Brighton raises more tax revenue than Gates does, yet it has a lower tax rate. The average taxpayer in Gates pays less taxes than the average taxpayer in Brighton. How can that be? It is because there are some very high property values in Brighton. As a result, higher value property owners subsidize lower value property owners. Total taxes and average taxes along with government spending are all higher in Brighton than in Gates.

The point is that statistics can often be warped to make a point. The truth is that Gates taxpayers have been getting a very good deal for a very long time. The quality of life in Gates is quite good, the government services are first rate and the tax bills are reasonable. Hopefully, Gates residents won't be fooled by misleading statistics.

2 comments:

King Dinglefritz said...

You are most certainly correct Repoman and welcome back from your month long slumber. I am happy to be living in Gates as we have a top notch police force and great services provided by the town. It is nice to know that when I drag out 7 or so tarploads of leaves some weekend soon they will be picked up promptly.
Its also amazing how politicians can take any number or quote and just spin it to make it say whatever they want it to say. Its enough to drive you batty. Well, we have a month of it before the elections. It should be amusing.
Man, I just hate it when I agree with you because its no fun.

repoman said...

Great minds sometimes think alike.