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Jumping on the tax issue

posted 5:30p.m. Nov. 5, 2009
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Click Here To Email Allan Vought
BY ALLAN VOUGHT
avought@theaegis.com

One of my favorite song lyrics is from the song "Flip, Flop and Fly," made famous by Big Joe Turner. It goes something like this:

"I'm like a Mississippi bullfrog, sittin' on a hollow stump,
I got so many women, I don't know which way to jump."

Doesn't that describe most Harford County politicians to a "T" when it comes to taxes?

This week's shuck and jive by the Harford County Council on the local impact fee tax certainly fits the profile.

When two council members, Dion Guthrie and Chad Shrodes, introduced a bill earlier this fall to repeal the four-year-old tax outright, the prospect for passage looked good, given the recent vocal anti-tax movement that has been sweeping the country — Harford County included. Here was an opportunity for the entire council to take a stand against a seemingly unpopular tax, one that hits young people trying to become homeowners for the first time especially hard and a tax that, at $8,269 for a new single family home, is a strong buyer disincentive in tough economic times when the county's beleaguered housing industry could use all the help it can get.

So what happens instead? Following a public hearing at which some people, who mostly derive their income or pensions from tax dollars, spoke in favor of keeping the impact fee, a majority of the council members got cold feet and ganged up on one of the sponsors, Shrodes, and unveiled a compromise while Guthrie was conveniently, in the words of Council President Billy Boniface, "out of town" and unable to be contacted.

Under this plan, the impact fee tax won't be killed completely, just rolled back about 30 percent to its original level of $6,000 for a single family house, marginally less for a townhouse or condo. Outnumbered, Guthrie, who "returned" for the council meeting the same evening reluctantly watched his repeal bill killed by the six other council members, Shrodes included. Weep not for Guthrie, however, since his bill was done with ulterior motives in the first place, as he has long wanted to replace the impact fee with a higher property transfer tax.

It appears the council members, regardless of political or ideological stripe, just couldn't bear to part with tax revenue and are willing to risk political consequences to keep taxing. In the prevailing economic and political climate, it makes little sense to protect a tax like this, which has furnished far less revenue than its backers claimed it would.

But fear not, the council has set up one of those proverbial blue ribbon committees to study other sources of revenue — and taxes. Conveniently, the panel's work isn't due to be completed until at least Dec. 15, 2010, a month following the next election.

When it comes to taxes, it's hard to say which way these folks may jump when the water gets hot.

--Allan Vought




 

 

Looking back

Nov. 4, 2009