Friday, October 30, 2009

3 Questions

One would have to have been asleep for the past few years not to know that Rhode Island has a money problem - we spend too much and receive too little. It is laudable therefore that the General Assembly will have a conversation in December to talk about these problems.

With regard to the high property tax issue (5th highest in the nation) I would urge the legislators to consider the following questions:

1. Do changes in one's property taxes always reflect the changes in the tax levy of their community?
2. Do new owners always pay taxes based on the value of the property they have purchased?
3. Do all owners always receive a limit on their tax increases the way S3050 limits the growth in the tax levy?

The answer to these questions should be a solid "yes" but sadly, the answers are "no".

Until this is addressed, controlling local spending alone will not produce the beneficial results for the taxpayer that it should.

Replace the property tax with an Owners' Tax and we will be able to answer "yes" to all the above questions and save some money too.