Local Taxes/Levies - question

The city/county collects taxes in a variety of ways - property taxes, business taxes, and more. I don't understand, however, why we need higher levies on our property taxes to accommodate schooling costs, as well as the other areas where population growth requires expenditures – sewers, streets, playgrounds, snowplows, etc.

Shouldn’t the proper tax structure already be in place, so that each newcomer pays their own way? This would result in a tax base that increases proportionally to the population growth. Instead, it seems that we're going to follow this pattern of being forever nickel-and-dimed for increases. Is there anyone out there who thinks we won't be seeing any more school-tax requests in the next 12 months?

The levies that passed on Tuesday will add $175/yr in property tax to a $200K home (quick guess/estimate), which translates into anywhere from $150 - $350 for a majority of homeowners, if not quite a bit more. This is on top of the fact that assessed values for taxation continually increase, thus compounding the actual additional burden that most homeowners will feel.

I should state for the record that I am not against paying my fair share. Taxes, when managed properly, can greatly enhance the quality of life that we, as residents, enjoy. I do believe however, that there must be a better way of collecting tax revenue – one that is fair, and will collect the proper amounts as population grows. There is no getting around the fact that Gallatin/Bozeman is a desirable place to live, and more people will move here. That growth shouldn’t be a problem, if we have a tax structure in place that is forward-thinking and geared for that eventuality.

I should also state that I really don’t know much, but I do know that we’re going to keep seeing these requests, and I have to ask:

  • How will population growth in Bozeman/Gallatin pay for itself?
  • Were we, and/or are we under-taxed?
  • Why do we, the people who already live here, pay more when new people move here?
  • Where are other areas that the city can fairly collect tax money from, in order to accurately target and manage the total financial impact of population growth?
  • What’s in store for the next 5 years, in terms of local tax increases, for Bozeman & Gallatin residents?

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tags: gallatin, bozeman, tax, levy, levies, school, property + add tags
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posted on Thu, May 08, 2008 09:36 AM
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Sales Tax bysnatr2 days ago (0 votes) (report abuse) (reply)
I think a sales tax is the way to go for MT and nationally. Income and property taxes leave out a segment of the taxable population and are easy to cheat. Additionally you get revenue from tourists. MT is one of the few states that hasn't turned to a sales tax, and I'd like to know the arguments for keeping a state income tax.
Income from Development? bydanie0062 days ago (0 votes) (report abuse) (reply)
Doesn't it seem like there should be a sufficient increase in incoming property tax revenue with all the development in the Gallatin Valley to cover the additional expenses? Just wondering...
RE: Income from Development? bysnatr2 days ago (0 votes) (report abuse)
I think you would have to break down what type of development you are talking about. Just residential homes, apartments, or retail? If you take the residential homes out of the equation we have to figure out what tax breaks the developers or chain stores are getting. Tax breaks are a great first place to look when things don't seem to be adding up. Obviously the thought is that the economic growth will out weigh what ever tax break you are giving, but it still means there is more of a property tax burden put on the average home owner.

I'm just a renter as of now and b/c of that there is money the city/state is not making off of me. Sure part of my rent goes to paying the property tax of the Apt complex but again did this developer get a break of some sort to build in the first place?
Taxes bycwrite1 day ago (0 votes) (report abuse) (reply)
It has never made sense to me that a state which advertises itself as a
tourist destination year round doesn't have a sales tax. However, like some states do, I favor a limited sales tax. Don't add sales tax to food, clothing,
necessities. Restaurant food, for example, isn't a necessity. We already have Federal sales taxes on things like gasoline, cigarettes, etc. A hotel or gambling or entertainment tax makes more sense. These are not going to burden families trying to make their income meet their needs.