Letter to the Editor: Housing Is a Plus for the Local Tax Base
The study reported in the Aug. 30 issue of NBN ("New Apartments and Condos an Unlikely Source of Classroom Crowding, Study Finds") tells us what we have known for many years: that multifamily generally is a net tax producer. What your readers may not know is that the same holds true for new single-family construction.
We recently commissioned a study by a recognized economist and data analyst to study the taxes and education costs resulting from one full year of single-family production in Middletown,CT. The results:
- The number of new homes receiving certificates of occupancy, leaving a two-month delay in collecting the data to ensure that the homes were occupied — 103
- Number of students in the public school system — 8
- Cost to educate students at $6,922 per student — $55,000
- Taxes assessed on the 103 new homes — $627,000
- Net to the city after education — $572,000
Since this study, builders in other municipalities in Connecticut have conducted similar reviews. In every case, the results have shown a positive contribution to municipal tax revenue after allowing for education.
It is hard to believe, but the municipalities are actually working overtime to stop, reduce or slow down a substantial source of net tax dollars.
Bob Fusari, Sr.
NAHB Senior Life Director