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Board position on Responsible Abatement Ordinance

Sat, 10/25/2008 - 10:47 — Greg Jones

 

On behalf of the Board of Directors of the Saint Joseph Valley Project:
 
 
 
The Saint Joseph Valley Project endorses the proposed Responsible Abatement Ordinance. Our organization believes the point system proposed in the ordinance creates the best mechanism available for judging fairly the merits of petitions to the County Council for the abatement of property tax payments.
 
The foregoing of taxes paid should only be bestowed on the most deserving of businesses. Tax abatements by their very nature disrupt market forces. As businesses reach the end of their life cycles they cease contributing to the tax base of our community. When they are replaced by new businesses our community needs the tax revenue generated by these new or expanding companies. Without that revenue services either have to be reduced or the tax burden shifted. As a community we cannot afford to allow “average” companies to receive preferential tax treatment. A company should have to demonstrate that it possesses extraordinary traits that qualify it for special treatment.
 

The Responsible Abatement Ordinance establishes a fair way of evaluating whether a company is going to contribute more to the community than it receives in foregone taxes. Simply creating jobs and building a structure are not enough. Without assessing the economic, social and environmental impacts of a proposed business we could be subsidizing a business that will eventually cause more harm than good to our community. We could unfairly impact other similar businesses that do not receive the same tax treatment. Only “High Road” businesses should receive preferential treatment. If we as a community are going to manipulate the market we should do so by only rewarding businesses that make our community a better place to live.