The Consequences Of Saving On Taxes
The Consequences Of Saving On Taxes
To the Editor:
I thought that it would be helpful to provide the following information regarding the tax implication as a result of an increase in the mill rate. The following information is based on the proposed 27.3 mill rate.
For a home assessed at $200,000 (market value ~$400,000): $200x27.3 mills=$5,500/year or $455/month, which is an increase of $20/month from the previous year.
For a home assessed at $300,000 (market value ~$600,000): $300x27.3 mills=$8,250/year or $682.50/month, which is an increase of $30/month from the previous year.
For a home assessed at $400,000 (market value ~$800,000): $400x27.3 mills=$11,000/year or $910.00/month, which is an increase of $40/month from the previous year.
For a home assessed at $500,000 (market value ~$1 million): $500x27.3 mills=$13,750/year or $1,137.50/month, which is an increase of $50/month from the previous year.
So many people ask, âWhy is it that the percentage of increase in spending surpasses the percentage of income increase?â One simple answer: rapid residential development with a huge influx of residents with children. The population of Newtown has increased from 20,779 to 26,802 in the last 14 years. Student enrollment has increased from 3,428 to 5,647 in the last 15 years. According to Mr Rosenthal, there is a potential for an additional 2,700 housing units to be built on the 33 percent land still available for residential development. Newtown is one of the fastest growing towns in Connecticut and Newtownâs real estate value has significantly increased. The value of my home has increased by more than 70 percent in the last seven years. The cost to purchase a two-acre lot has tripled during this time. Will this trend continue if we do not support the annual operating budget?
If the majority of the residents want to save on taxes then we must live with the consequences of making this choice. We must be willing to (1) accept loss in the value of our homes, (2) must be willing to sacrifice quality education for our children, (3) must be willing to have less than adequate town services, (4) accept change in the character of the town when it becomes necessary to pursue means to increase the revenue sources.
Tom Murray
38 Charter Ridge Drive               May 16, 2006
(Editorâs Note: The Newtown Assessorâs office calculates assessed value of homes at 70 percent of market value, not 50 percent, as Mr Murray has done in this letter.)
