City officials are reacting favorably towards a proposed $7.2 million West Racine residential/retail development. The project is dependent on a $5.2 million tax credit according to an article in today's JT.
According to my back of the envelope calculations based on my own property tax obligations, I figured that a $7.2 million property would owe approximately $170,000 per year in property taxes. Therefore, a $5.2 million tax credit would amount to thirty years worth of property taxes waived, or more accurately, assumed by those who do pay property taxes.
As some of you may know, I recently concluded my own redevelopment project. My taxes are now over $11,000 per year. Not having to pay property taxes for thirty years would mean $330,000 more in my pocket. And I am sure any property owner reading this would be more than happy to be relieved of thirty years worth of property tax obligations.
Now I am all for tax relief, don't misunderstand me. But it should be fairly applied. In this case, out of town developers are getting a thirty year tax break while you and I get stuck paying their share of the tax burden for the next thirty years. Why would we want this?