Recall that residential construction costs us
In Exploding the Big Myth, we began to see that growth through residential development does not offer the economic boost claimed by its advocates. Indeed, we showed that such development nearly always costs more in services than it generates in new tax dollars. Let’s be totally clear on this: Ongoing residential development will raise your taxes. ( “Taxes” in this case include primarily state income tax, property taxes, bond issues, a variety of possible special tax levies, and potentially certain sales taxes.) To the extent possible, the surplus revenues from farmland, open land, and commercial property make up for the deficit created by residential development. But they can’t work miracles. Tax increases seem inevitabley to come along, and to a large extent you can blame the growing deficit created by ongoing residential development. More importantly, without it, those revenues from other land uses could be put toward needed community projects! We looked at a bit of the extensive “cost of community services” data to support this, and we’ll examine other supporting data in future articles.

Signs of things to come in the Novak development outside Lisbon.
In our area, we’ve already seen some of these increased tax levies. In MV, for example, the growing population has caused over-crowded schools, and the $8.9 million bond issue for the new high school was the result. Thankfully, one of our great strengths here is our passion for education, and we enthusiastically passed the bond issue. It’s not hard to see, though, that had the schools not been bursting at the seams, it might not have been necessary to begin with.
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