Mike Jensvold wrote:

Why should we even need an exception like "This Old House"?
Why should people be taxed more for building better buildings
when there is little relationship between expensive structures
and public services consumed?

Don sez:

The state law popularly known as "This Old House"
was conceived as an incentive program.  It's based
on the notion that there is a benefit to all of us,
that people want to keep up their older houses.

Improvements benefit everyone, because Minneapolis
is thus seen as a city in fairly good condition, compared
to many old cities that seem to be falling apart.  (There
are some big exceptions in low income neighborhoods
where folks would like to fix up their homes but cannot
afford it!)

It was pushed by numerous Minneapolis legislators,
such as Carol Flynn, Jane Ranum, Allan Spear and others
and had strong support from St. Paul legislators like
Ellen Anderson and others.

People asked why they should be penalized for fixing
up their older houses.  Mike asks a simliar question the
other way:  why should people be penalized for building
expensive new buildings?  This whole debate about the
relationship (or lack thereof) of property value to the
services consumed probably helps to show why we
should not rely so heavily on property taxes at all to
fund essential government services.

The "Minnesota Miracle" of the seventies, brought
to us by the DFL, was based on the idea that we
should not rely so heavily on property taxes.  We
should base taxation more upon ability to pay.
The state can collect income taxes and give aid to
local governments (LGA).  In recent years (since
the Republicans took over the House in 1998),
we've cut LGA.

Don Jorovsky
New Brighton


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