The Frederick County Commissioners have decided to reduce their excise tax fee on builders and developers to zero as a result of a dramatic decline in building. By a vote of 3-1 the Frederick County Commissioners felt that by temporarily eliminating the excise tax might encourage and thus stimulate what can be described as a lifeless construction economy.
Commissioners President Blaine Young said cutting the excise tax will encourage economic growth. And the county could recoup some of the funding losses by attracting jobs and businesses to the area and broadening the overall tax base.
"It (lowering the excise tax) makes us look a little more business-friendly," he said Tuesday. "We're going to benefit all around."
Now - if we could just get the Wicomico County Council to take up a similar cause and thus abolish Wicomico's impact fee - we might just see a few more construction jobs. If they don't take action - well there is a good possibility that more than just 84 Lumber and Allied Building Supplies will disappear from our landscape.
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20 comments:
You have to be kidding. Growth is the LAST thing this county needs because their is no mechanism to pay for it. The current council will not even allow the cap to function as passed. Frederick county will actually see benefit from growth, whereas Wicomico will not be able to support more people on our roads, in our schools, provide police protection, etc. If you really want more growth, how do you suggest that we pay for it? You are even stating that a minor addition in revenue, that really amounts to nothing be waived. This county already has the lowest taxes per capita, and will not be able to provide services to the existing population. We need a moratorium on growth, not encourage it. As they say, if you can't feed em', don't breed em'.
84 lumber has been destined to go out of business for years. They never carried anything. Allied building center went out of business years ago because they didn't diversify. If we abolish the revenue cap, we could probably abolish the impact fees. How little local taxes to people expect to pay, and still have services. Business won't move to an area that is impoverished, and the roads look like a third world country.
Too little too late , cutting the tax will make it worse now. the building industry is not ever going to be like it was. Obama has destroyed the our nation as as a capitalist society.
A perfect example is the Walmart distrubution center in Westover.The county cant get the water and sewer out to it because there is no money so in turn there is no jobs.
To 8:17
It is obvious that you have never heard of the economic term 'Demand Destruction'.
You see it was the impact fee that actually helped and contributed 'to kill the goose that laid the golden egg' - construction industry.
You'll see what will happen if either Lowe's or Home Depot decides to throw in the towel here locally.
As far as growth goes - what growth. There presently is none other than the government itself - (i.e. Tri County Council, SU, BOE). As I said - Demand Destruction has already set-in.
Reference to 8:17 Posting
8:17 Post said - 'we need a moratorium on growth not encourage it'
In case you haven't noticed - there is. The only growth that is occuring is the government itself.
What amazes me is that if it were not for SBYnews the average Joe Blow would probably have never heard about this kind of news. I can almost guarantee you that the Daily Times would have muffled this event.
10:05
DITTO - That is exactly why their sales are lagging. The people on the easternshore have finally waken-up.
To 8:19 - You are not going to find much solace on this blog.
Most of the readers are main stream and higher taxes are not part of their alphabet.
Frederick County is similar to Wicomico as their rural make-up is mainly conservative. It would not surprise me to see them repeal the tax altogether.
RE: 1:29
It is refreshing to see that there are still a few jurisdictions that actually try and remedy a condition. Abolishing the excise tax was the right thing to do in my estimation.
The article says that they considered to repeal the excise tax but instead decided to reduce the rate to 0. If my memory serves me correctly - former Wicomico county councilman Tony Sarbanes tried to enact similar legislation while he was in office.
Apparently Frederick officials felt that the excise tax stymied construction and contributed to their unemployment.
While this may promote construction, it also promotes GROWTH. You are all so eager to say cut taxes, but you haven't offered a solution of how this growth will pay for itself. ESPECIALLY if impact fees were waived. Most of you can't grasp the concept of the tax cap except to say "we voted for it and want to keep it". It is funny, the very group that sold the bill of goods, is the same one that is compounding the problem by selling more homes, thus, creating growth. Let me ask some of you this, if you can't pay your bills now, would you entertain the idea of having more kids? Especially knowing that you will never get a pay raise beyond cost of living? Why don't some of you try to absorb what I have just written instead of blaming local government. Thank VOICE and your current council for the mess that the county is in this fiscal year, and the coming fiscal year. Frederick county has a tax rate MUCH higher than Wicomico. Comparing a county without a tax cap and a higher tax rate to Wicomico County is not apples to apples. What business will you attract with roads and services that resemble that of a third world country?
long live the revenue cap.
i voted for it and want to keep it.
3:29, Even if you don't understand it. Right?
Did you vote for the cap to fuction the way you voted for it, or however the current council feels at the time.
All I know is that our taxes went up 24% in one year and we were looking at at least another 15% increase the very next year.
At the time - Wicomico had the 3rd highest real property tax rate in the State of Maryland. Now - after 10 years we are ranked 22 out of 24 jurisdictions.
I believe it has worked perfectly - and by that I mean it has kept my money in my own hip pocket as opposed to the government bureaucrats.
To 3:17
What growth. Could you please show an example of a single new development in this entire County over the past 2-1/2 to 3 years.
There is no growth with the exception of Government growth. So why would do you want to add even more fuel to the fire through more and higher taxation. It is a recipe to disaster.
8:21, There has been no measurable growth in the last 2 or 3 years, however, in the years directly after the implementation of the revenue cap, this county experienced a construction boom and growth that it had never seen before. Unfortunately, due to the limitations of the cap, the county could't benefit any from the growth because there is no mechanism in the tax cap for growth. Essentially this county had a bunch of kids and had no way to pay for them.
8:09, that's right, that is all you know. First of all, your property taxes can't go up more than 10% (now 5%, big mistake) a year on your principal residence due to the Homestead. Secondly, have you realized that the tax rate is now equivalent to what it was in the 1960's. The cap was supposed to function a certain way, and your current council is not even allowing it to do that. One of your councilmen is a developer. Interesting. Let's get a petition drive to end any and all growth in this county unless it can pay for itself. I am tired of supporting growth because it does nothing for me. Now you fools want to eliminate the Excise tax, the ONLY thing that will atleast contribute a crumb to our area.
7:10 - I hear you - but I believe you are barking up the wrong tree on this blog. You had better take 1:25's advice because this news media has more of a centrist viewpoint verses a liberal agenda.
I have to agree with most of the comments regarding Wicomico having no growth. I do not believe you will find anyone to argue this viewpoint as there is virtually no private construction in our County. The only exception to this is the County and State government expansions that are currently underway. Now this raises a bigger question - with declining revenues why in the world would our elected officials embark on larger government expansion? Personally - I believe we are going down the tubes like Greece, Italy, France, Belgium, Span, & Portugal. Wait and see - we'll be there very soon.
To 7:10
I stand to correct you on your statement that property taxes cannot go up more than 10% (now 5% under a new assessment tax cap passed by the Wicomico Co. Council).
Many many people experienced their taxes going up 24.6% as their assessable base value climbed to the 10% overall assessable base limit.
Bottom line - you are in error.
Finally - the huge tax increased spurred public outrage and thus we have the revenue cap.
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