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By A Smith (anonymous) | Posted January 03, 2010 at 04:47:58
One way the city could attract more investment would be to tax businesses not on assessment, but on the square footage of their property. Currently, the tax system punishes property owners who increase the market value of their buildings and actually rewards those who decrease the market value of their buildings.
If property owners paid taxes based not on the quality of their properties, but on the square footage, the result would be a competition to see who could build the highest quality properties using the least amount of government infrastructure and services.
This shift away from taxing quality to taxing quantity will give property owners the confidence to once again invest in the downtown. If a 250k building can be improved to 500k without the threat of a doubling in property taxes, the result will be very happy property owners with much more willingness to do just that.
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