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DESTROYING A MYTH
The Myth: Growth Provides Needed Tax Revenue
The Truth:
Growth costs more money than it produces in taxes
and unplanned growth costs even more.
Some Facts:
“Initial costs to existing residents of adding one person to
the average American community is about $15,400.”
[Carrying Capacity Network study]
For
every dollar collected in taxes and non-tax government
revenue for residentially developed land, “between $1.15 and
$1.50 gets returned in the form of services by the local
government and school district.” [Ohio State University
study]
“New
development frequently creates infrastructure costs greater
than the revenue generated” for the local government unit.
[Ohio State University study]
In
Virginia, for every $1 counties received in tax revenue,
they spent up to $2.56 on infrastructure and services in new
developments.” [Cost of Sprawl study]
Jefferson County, Montana, study found when developing
farmland into homes, “those homes demand $2.16 in services
for every dollar in taxes they pay.”
A
Rutgers University study found that planned development
“costs 25 percent less for roads, 15 percent less for
utilities, and 5 percent less for schools”.
A
statistical compilation of three national studies relating
to planned growth savings showed that planned growth results
in a cost savings of 25% for roads, 5% for schools, and 20%
for utilities. [study prepared for Pennsylvania Costs
of Sprawl Study by Colorado firm]
In
Wyoming it was found that “conversion of 35 acres of
agricultural land to a residence creates $1.13 in county
government and school expenses for every dollar in revenue
generated.” Just think what the increased costs would be
for property developed in pieces smaller than 35 acres.
[University of Wyoming study]
“Studies indicated by the Local Government Center at Montana
State University have shown that property tax and other
revenue from residential development does not cover the
costs local governments incur for providing services.”
[Local Government C enter, Montana State University]
Summary
Growth increases taxes.
Unplanned growth increases taxes more than planned growth.
Unplanned growth is a drain on government coffers.
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