Prince George’s County - Operation 862!! (buy, public school, to live in)

[CBMD]

Originally Posted by adelphi_sky

Please understand the context in which I made the statement. Thanks.

I believe I do understand the context. You were replying to the specific comment by AeroGuyDC. If I'm wrong please enlighten me.

[lee_in_beechtree]

Originally Posted by North Beach Person

Hey kids, just keep in mind that "tax incentives" in the form of property tax abatements do come with a cost.

Collecting $0 from a new business which requires public infrastructure be built gets paid for by the residents.

Understood, but tax abatements usually have a finite lifetime.

But with a new business you also get an increase in income tax from the employees, property tax increases for those employees who move to the area, and sales tax increases from employees spending in the area of the business.

I was up in New Carrollton the other day and saw plenty of office buildings close to the transportation hub with FOR LEASE signs on them. Would these require the building of public infrastructure? And I've seen the same thing in the vicinity of the Largo Metro station.

[North Beach Person]

Originally Posted by lee_in_beechtree

Understood, but tax abatements usually have a finite lifetime.

But with a new business you also get an increase in income tax from the employees, property tax increases for those employees who move to the area, and sales tax increases from employees spending in the area of the business.

I was up in New Carrollton the other day and saw plenty of office buildings close to the transportation hub with FOR LEASE signs on them. Would these require the building of public infrastructure? And I've seen the same thing in the vicinity of the Largo Metro station.

Assuming the employees move there would be an uptick in income tax. The State would be the biggest beneficiary with the County getting the piggyback.

Sales tax collections don't help the County they all go to the State. The Counties (and municipalities) used to get a very small piece of the sales tax but O'Malley ended that early in his first term.

The infrastructure for those buildings is being paid for now by everybody. If they are County roads then by County residents, if State roads then by MD residents generally.

If the County is paying for them keep in mind that's all County money now since Highway User Revenue monies were ended by the O'Malley Administration. Hogan has reinstated the funding to about 30% of the level it was under Ehrlich and his predecessors.

[adelphi_sky]

Originally Posted by CBMD

I believe I do understand the context. You were replying to the specific comment by AeroGuyDC. If I'm wrong please enlighten me.

Schools don't matter in the context of office relocation around TODs (assuming the goal here is to seed the county's 15 metro stations with new workers). A business can move to the doorstep of a metro station and neither one of its employees would need to live in the county it is located in. I worked in Ashburn and did not have to live there. Therefore, I did not care about the schools in Ashburn. Mostly because I telework. If a company wants to move its offices from ONE TOD to another TOD, employee relocation becomes less necessary, thus making the local school system a non-issue for the company as a whole.

We're talking about companies possibly moving from one corner of the beltway to the other. Not a far enough distance to compel people to relocate with all the new transit options being provided now and in the future (Silver Line, Purple Line).

People commute to DC without having to worry about their kids going to a DC public school.

Only when commuting becomes an issue, then schools become an issue because then employees would rather shorten their commute and live where they work.

[lee_in_beechtree]

Originally Posted by North Beach Person

Assuming the employees move there would be an uptick in income tax. The State would be the biggest beneficiary with the County getting the piggyback.

Sales tax collections don't help the County they all go to the State. The Counties (and municipalities) used to get a very small piece of the sales tax but O'Malley ended that early in his first term.

The infrastructure for those buildings is being paid for now by everybody. If they are County roads then by County residents, if State roads then by MD residents generally.

If the County is paying for them keep in mind that's all County money now since Highway User Revenue monies were ended by the O'Malley Administration. Hogan has reinstated the funding to about 30% of the level it was under Ehrlich and his predecessors.

Umm, the last time I looked, the State provides some funding to the County, and this comes from the taxes that the State collects. Therefore, the County will benefit indirectly from any businesses that relocate from VA or DC, with regards to sales and income taxes collected from them or their employees.

[North Beach Person]

Originally Posted by lee_in_beechtree

Umm, the last time I looked, the State provides some funding to the County, and this comes from the taxes that the State collects. Therefore, the County will benefit indirectly from any businesses that relocate from VA or DC, with regards to sales and income taxes collected from them or their employees.

It does but not at the levels using the old funding formulae.

Yes, part of the State revenues the Counties receive from the State are derived from the sales tax but it's in general fund transfers and not a piece of the sales tax collected in that jurisdiction. Net result is less funding to the locals. Municipalities have been totally cut out of general fund revenue transfers from the State.

[lee_in_beechtree]

Originally Posted by North Beach Person

It does but not at the levels using the old funding formulae.

So you seem to be focused on the levels of funding.

For me, any new PGC business that results in $$$ being added to the + column for the State and County is a win. And we haven't even touched on the subject of employment, outside of new income taxes, and what that can do for a community.

Hopefully, there will be more than one business, too.

[North Beach Person]

Originally Posted by lee_in_beechtree

So you seem to be focused on the levels of funding.

For me, any new PGC business that results in $$$ being added to the + column for the State and County is a win. And we haven't even touched on the subject of employment, outside of new income taxes, and what that can do for a community.

Hopefully, there will be more than one business, too.

The point I'm trying to make is to not consider it a "windfall". If anything it will be incremental.

[lee_in_beechtree]

Originally Posted by North Beach Person

The point I'm trying to make is to not consider it a "windfall". If anything it will be incremental.

I never thought about it being a windfall. Any monies are fine for the county, including incremental.

What I am looking for is what the businesses will bring down the road - i.e. the domino effect.

To simplify things, the County must crawl before it can walk.

[AeroGuyDC]

Originally Posted by adelphi_sky

I don't think schools matter much anymore. Like I said, a company can locate in the county near a metro and its employees can commute. The company gets incentives and cheaper lease rates while its employees don't necessarily have to relocate. It would possibly lengthen their commute, but for the company, it may be worth it.

PS: Especially when modified schedules and telework increase.

Valid points.