Giving away land without cost will perk the public interest. Or at least that’s the hope. Ever since the Homestead Act of 1862, Beatrice, Neb., has provided land to farmers planning to scratch out a living. That was during very different economic times for America. Today, town officials have drawn up their own Homestead Act of 2010 within the hopes that giving away essentially free land will generate real estate tax revenues to bolster the town’s money reserves. The New York Times reports that towns like Beatrice, Neb., can no longer make any open public land a part; they need tax revenue. Resource for this article – Beatrice, Nebraska, giving away land to generate revenue by Personal Money Store.

Beatrice has inspired numerous small towns to follow

Budget deficits that hamstring the largest cities are deadly to smaller towns like Beatrice, Neb. Dayton, Ohio and Grafton, Ill., are currently on that wavelength, writes the Times. If a traditionally well-off small town like Boca Raton is hurting, you know things are bad. Such small towns are giving away land for a nominal fee or even free of charge, hoping that will bolster the city tax register and remove the burden of lawn maintenance from the town and place it upon the shoulders of private owners. More residents would mean greater cost to extend services, but the hope is how the property tax revenue will make up for that.

Is taxing the non-profits next?

Places like Manchester, N.H., and Concord, Mass., are wondering whether all non-profits should be exempt from taxes. The spending budget shortfall has to be made up in some way. The costs Concord could make up if perhaps a portion of the 15 percent of their total real estate that is tax free changed sides would be tremendous. At what point will organizations that benefit society have to do more in order to keep their communities afloat? Private schools, churches and numerous other organizations could come into question. More and better sources than the New York Times have inveighed long and hard for this to happen.

Beatrice was the home of the original Homestead Act

Perhaps it is appropriate the Nebraska town is drawing attention to the property tax issue. There needs to be a driver of this tax revenue movement, particularly if the National League of Cities’ recent study is as grim as it sounds. According to that organization, “Between now and 2012, America’s cities are likely to experience shortfalls totaling $ 55 billion to $ 85 billion”. Such shortages will demand action. The tax benefit is there if more people are brought in, and building new and improved homes would also raise property values.

Making sense of the dollars

Vocal critics wonder if a city should have the power to give out free land to any “non-taxpaying outsider who asks”. ”What is the value of a lot to us if it is empty?” is what one concerned town mayor asked the Times during their report The harsh reality may revolve around simple dollars and cents.

Additional reading

nytimes.com/2010/07/26/us/26revenue.html?_r=2 and amp;hp

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