[Mpls] Minneapolis Taxpayers: This time, sharpen your minds

[David Brauer]

On Jul 30, 2004, at 11:37 AM, Victoria Heller wrote:
>
> Man, it's like talking to a brick wall.

I'm sure the feeling is mutual, but that's not the issue here.

> I'll try to make this simple.
>
> Moving businesses from old offices to new offices does NOT GROW YOUR=20=

> TAX
> BASE. Get it?

Yes. But it's not JUST old into new, no net gain. Downtown's office=20
capacity and long-term value are clearly up. So it's a long-term NET=20
GAIN. The old buildings lose value, but the long-term value of the new=20=

far outweighs that.

There's nothing in isolating a few losers to give you the overall=20
picture.

> New buildings with higher taxes doesn't help if existing buildings'=20
> taxes
> are dropping like rocks.  Get it?

Yes. But if the tax gains from the new buildings outweigh the drops,=20
then you GAIN. And since we're having this discussion at the bottom of=20=

a market cycle, things look just fine long-term.

> Under-assessing ANY buildings HURTS all taxpayers and starves the=20
> budget.
> Get it?

Yes, but you've never really addressed how businesses should be=20
assessed. NO ONE assesses based on selling price - until a building is=20=

sold. There are also rules for making assessments (which is why=20
business owners go to court all the time).

You've shown zip, nada that the rules aren't being followed. The=20
concept that selling price =3D previous assessed value just is just=20
wrong; no one works that way.

> You need MORE businesses and MORE people and accurate tax assessments.=20=

>  Get
> it?

Yup, and only pointing out the isolated explainable drops doesn't speak=20=

to MORE or LESS overall. You need to look at the pluses AND minuses  =97=20=

which is my point.

You can't look at $315 million of new value and $13 million of new=20
property taxes and complain about a building that lost a few million in=20=

value (at the bottom of a market trough).

Let's look at the totality and the long-term and then we can make a=20
rational judgment. Until then, emotion, frustration and hectoring will=20=

betray our logic.

David Brauer
Kingfield=