Replacing personal Property tax with a common sense tax plan.

As I've talked to several citizens in the 3rd district, one of the biggest concerns they have are the high taxes in the City of Arnold.  In Arnold, we are paying some of the highest amounts in Jefferson County at 8.530% and some retail businesses are even charging 9.350%.   Our District is 92.4% higher than other cities and counties in Missouri.  I would not be so concerned with such high taxes being charged if we as taxpayers were not being taxed double for essential services such as schools, roads and bridges.  Due to these increased taxes, I feel it would be my responsibility as your new District 3 County Councilman to eliminate the personal property tax for the county. 

            Let's not forget that every March, all Jefferson County residents receive the usual assessment letter from our County Assessor, Terry Roesch.   As everyone completes their assessment, the fact must be uppermost in all of your minds as it is in mine, that you are again paying a tax on something you own.  Let's not forget that the American Revolution was fought for far less.  Now taxes are levied on everything from cars to tractors to livestock.  I've asked myself over and over as I'm sure my fellow Jefferson County neighbors have done, why don't our representatives see the injustice and hardship multiple taxes cause to the citizens in the County, not to mention the businesses?  With that in mind, I promise to fight for my neighbors throughout the county to rid them of this tax.

Tangible personal property (TPP) is property that can be touched and moved, such as equipment, furniture, and other possessions.  All states with the exception of Oklahoma have exempted themselves from TPP taxed goods that are not used for the production of income.  (Even in Oklahoma, only six of the 77 counties in the state levy this tax on household property.)  Many states continue to tax large household items such as motor vehicles and personal watercraft, while other states opt to tax these items with a separate excise tax.  With household goods exempt, state and local TPP taxes apply primarily to business equipment.  While the tax is often labeled as a tax on personal property to distinguish it from taxes on real property, many states have exempted personal property used for personal reasons.  Due to the hidden meaning of a TPP tax, most citizens are not aware that the tax on personal property still exists and that it is a significant expense for businesses. 

Compared to real property, personal property typically comprises a relatively small share of total state and local assessed property values.  For example, tangible personal property in cities in Texas accounted for 11% of all assessed property statewide in 2009.  The value of TPP taxes varies from 0% of total property assessed in some Texas cities to as much as 85% of total assessed property (real and personal) values in others.  This wide range of personal property as a percent of total property seems to be typical of all states, with average statewide personal property values existing somewhere between 5% to 15% of the total assessed property values, but with great variation within each state.  Moreover, in 2009, revenues from TPP taxes comprised only 2.25% of total state and local tax collections.  This decline in TPP tax revenues represents a positive trend in eliminating a tax which imposes significant economic distortions compared to alternatives.  Following are recommendations and pathways to reduce state and local reliance on TPP taxes while preventing steep, irreplaceable declines in local tax revenues. (According to the website taxfoundation.org)

            As many of you know, I was not born or raised in Jefferson County.  In the county where I grew up, I was a member of a citizen's committee that helped move the county away from the Personal Property tax (School Tax, Library Tax, and Fire Taxes were still being assessed) to a flat sales tax that everyone paid when they bought an item at the stores, food or soda at a quick shop, or food at a local restaurant.  The committee and the Commissioners agreed to give the residents the power to decide through their vote how they wanted to be taxed and the legislation passed with 76% of the vote.  The citizens also voted to give the Sheriff's Department a one cent tax on top of the flat tax that will sunset in 10 years at which time it can be brought before the voters to be reinstated.  Even with the one cent tax for the Sheriff's Department added to the tax rate, the new percentage is a mere 6.975% for that county.  If we as a county, were to charge the same flat sales tax for everyone from local residents to people passing through Jefferson County and either increase the amount charged to match the City of Arnold's tax amounts or decrease the City tax down to the county level, it would allow for the county to eliminate the person property tax for all citizens of Jefferson County.  If you would allow me the honor of becoming your next County Council Representative in District 3, I will fight for each and every citizen of this District as if they were a member of my own family.  My priority will be to fight to eliminate the Personal Property Tax.  Furthermore, I will vote against any tax increase for five years.  My core belief is that raising taxes must be accomplished through the vote of the people.

 I will stand on the traditional Democratic principles that Former Congressman; Dick Gephardt believed in that included Social Conservatism and deep rooted pro-life convictions.  The people of this District long for this type of representation in order to move it forward towards a brighter future for generations to come.