Reval Ruse Redux
Where is the surprise? Why are the headlines: Mecklenburg County has $44.8 million more than expected? There is no news here. This is a case of dog bites man. Every time there is a revaluation, since at least 1980, taxpayers and voters have been told we are going to have a revenue-neutral tax rate. Every time we have had this happen the county takes more in taxes than it should have IF we were given a revenue-neutral tax rate.
A simple explanation of how revaluation works highlights part of the problem with our county leaders: Normal growth in tax revenues follows a particular pattern. If 5% growth occurs in the value of property, through new buildings and sales, then the next year the county will, if the tax rate remains the same, bring in 5% more in tax revenues. If the tax rate is changed, then the new rate has to be considered also.
The math, my friends, is not complicated. There are just a lot of numbers because there are a lot of parcels of land in Mecklenburg County. Anyway, the math works like this: Multiply parcel value times tax rate. Add all results together. The end. Since the county has the value of each parcel on a database, the math is easy. If you change the value of each parcel, the math is still easy; so why, please tell me, is it a surprise if tax revenues go up.
If the Mecklenburg County staff knows what they are doing then they should be able to give an accurate estimate of what the revaluation will do to tax revenues. That they didn’t says one of two things: Either they don’t know what they are doing, or they didn’t tell us the truth. My opinion is that they know what they are doing, because in every revaluation taxes have gone up more than they should have with a revenue-neutral tax rate. The reason for this is simple. They INTEND to obtain a ‘hidden’ tax increase. Unfortunately no one but the few people in the revaluation office, and perhaps, or probably, their bosses know the truth.
To reiterate: In doing revaluation, there are five known factors: what the overall county property values are, what they will be, what the tax revenues are, what the tax rate is, and what the revenues will be under various tax amounts. It is easy enough to determine the revenue-neutral rate. So, they know what the revenue-neutral tax rate is. Then they determine what number to present the county commission, as if it is a revenue-neutral number. Call that what you will; I prefer the term Big Lie, while swindle and deception also come to mind, because each year there is revaluation, county taxes have increased more than they should have, if we had a revenue-neutral rate.
If county staff didn’t know what they were doing, then sometimes one would expect the revenues to fall once is a while; but they never do, because staff does know what they are doing. They’re just not telling the public. I have previously written about this using numbers county staff bandied about early last year while softening up the public for the upcoming fleecing.
I could go on, but the issue is simple. If county staff didn’t know what the revenue-neutral rate was then they are not qualified to be working for us in that part of our government. Since they are responsible to the manager, then he is not hiring competent people and he needs to be replaced; or they are competent and the numbers they give us are chosen intentionally. Which one is it?
Since nothing is going to happen to anyone on county staff for doing this then we can guess the truth.
And the story gets better. Notice that to cover his tracks, Harry Jones proposes a tax cut. I’m impressed. He’s asking for a lower rate, which will do two things: keep the money he already took, and still increase the tax rate over what it would have been if it was revenue-neutral compared to revaluation.
What a deal!@# What politics. Jones gets to say he’s cutting taxes when he actually increased them. What should be done is have the tax rate reduced enough next year, to give the taxes back to the taxpayer, then leave it there. This would mean a 10% cut in the rate, because the increase, the $44.8 Million, is a 5% hike in taxes.
So where are Karen Bentley, Jim Pendergraph, Neil Cooksey and Harold Cogdell on this issue? We know where Bill James is – usually by himself – standing against the Big Government twins of George Dunlap and Vilma Leake, while Jennifer Roberts and Dumont Clarke dissemble and try to change the subject.
This is important. Pendergraph is running for Congress, touting his small-government ideals. Here is his chance to show his colors. Where is his leadership on the issue? We don’t need Jennifer to show hers, as she says: “We can look at keeping tax rates the same or maybe even have a little reduction to ease some of that revaluation pain.” Roberts we already know is for higher and higher and higher taxes.
But they’ve already taken the money, and “can’t” give it back. What a neat trick. A bank robber wouldn’t have that problem; if he didn’t give it back, he’d go to jail for more time.
Charles Jeter, a candidate for state office currently on the Huntersville Town Council says: “But we can learn from this and move forward — fix some problems and make sure we don’t make mistakes again.”
What typical political propaganda.
This was not a mistake. They do the same thing every time there is a revaluation. Then the politicians have the money, having already taken it under false pretenses, and prepare to spend it to buy votes. I can see it in my mind’s eye: they’re all in a room together, standing around with greedy Gollum-like smirks on their faces, their shoulders hunched, twisting their hands together and repeating the mantra – “it’s mine, it’s my precious, it’s all mine.”
Am I wrong? Perhaps. Vilma is probably doing some something resembling a dance and Jennifer has her arms in the air, swinging her body from side to side. Harry Jones is sitting to the side with a Cheshire cat smile, gloating. City Manager Curt Walton is saying, “Good job, Harry, you know I’m going to have to take a tax increase because there is nothing left to annex?”
And then the caterer brings in the champagne and Harry whispers, “Send the bill to the taxpayers.”
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