[Bill14564]

Originally Posted by ScottFenstermaker

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I know this is complicated, but think: If the Developer could simply pass on 100% of higher impact fees and not take a profit hit, do you seriously think he would have paid Hage $350,000.14 and would have fought so hard to keep his Commission puppets in office?

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But the developer cannot pass 100% of the higher impact fees on to the buyer. What seems to be frequently disregarded is the impact fees apply to not only to the construction of homes but also to the construction of commercial property.

The additional cost to the home might be about $1,500 which could easily be added to the price of a home in the Villages. Heck, between inflation, the bond, and various state fees and taxes, $4,000 would be lost in the noise.

Commercial property is a different story. There are threads on here asking when a BJs or Costco or whatever might be coming to the area. According to one of the documents analyzing the 2019 study, increasing the impact fee would add $500,000 to the cost of the building for a total of $835,000 in impact fees. A hospital would incur about $1,000,000 in additional impact fees.

While $1,500 might not affect the sale of a home, an additional $500,000 is very likely to affect the profitability of the Costco and may result in it not being built in the first place (not that it seems to be coming soon anyway). I appreciate having businesses and hospitals either in or close to the Villages. I would like lower taxes too, but if an extra $300 per year maintains the lifestyle I enjoy then yes, I am willing to pay it.

[Bogie Shooter]

Originally Posted by dewilson58

Love You Guacamole, Love ya.

[golfing eagles]

Originally Posted by ScottFenstermaker

If you are okay with subsidizing the Developer's business with your property-tax dollars, I can't argue with you.

By the way, do you really think that the Developer's massive expansion of The Villages, which was facilitated by his puppet Commissioners and is being subsidized by the current residents, is good for the current residents?

Yes

[ScottFenstermaker]

Originally Posted by Bill14564

But the developer cannot pass 100% of the higher impact fees on to the buyer. What seems to be frequently disregarded is the impact fees apply to not only to the construction of homes but also to the construction of commercial property.

The additional cost to the home might be about $1,500 which could easily be added to the price of a home in the Villages. Heck, between inflation, the bond, and various state fees and taxes, $4,000 would be lost in the noise.

Commercial property is a different story. There are threads on here asking when a BJs or Costco or whatever might be coming to the area. According to one of the documents analyzing the 2019 study, increasing the impact fee would add $500,000 to the cost of the building for a total of $835,000 in impact fees. A hospital would incur about $1,000,000 in additional impact fees.

While $1,500 might not affect the sale of a home, an additional $500,000 is very likely to affect the profitability of the Costco and may result in it not being built in the first place (not that it seems to be coming soon anyway). I appreciate having businesses and hospitals either in or close to the Villages. I would like lower taxes too, but if an extra $300 per year maintains the lifestyle I enjoy then yes, I am willing to pay it.

How did you calculate $500,000? We don't know what the commercial properties would pay without an impact study, which Hage's legislation essentially blocks.

In any event, you are correct that new commercial property would be initially somewhat more expensive, but the businesses occupying it would subsequently pay less in property taxes.

Bottom line: somebody has to pay for the new county infrastructure, and I argue that that somebody should be the developers and new residents-- not us current residents. The 25% property-tax increase shows clearly what is going on here-- which is the current residents subsidizing the Developer-- it is he who is doing virtually all the new building. That is what the voters of Sumter County decided, by a 2-to-1 margin, in last year's County Commission election.

As I have said elsewhere, if you don't mind, in essence, writing a check each year to the Developer in the amount of your tax increase, I can't argue with you over property taxes and impact fees. However, I don't think higher impact fees, combined with lower property taxes, would slow growth-- it would just reallocate the costs thereof.

[Bill14564]

Originally Posted by ScottFenstermaker

How did you calculate $500,000? We don't know what the commercial properties would pay without an impact study, which Hage's legislation essentially blocks.

In any event, you are correct that new commercial property would be initially somewhat more expensive, but the businesses occupying it would subsequently pay less in property taxes.

Bottom line: somebody has to pay for the new county infrastructure, and I argue that that somebody should be the developers and new residents-- not us current residents. The 25% property-tax increase shows clearly what is going on here-- which is the current residents subsidizing the Developer-- it is he who is doing virtually all the new building. That is what the voters of Sumter County decided, by a 2-to-1 margin, in last year's County Commission election.

As I have said elsewhere, if you don't mind, in essence, writing a check each year to the Developer in the amount of your tax increase, I can't argue with you over property taxes and impact fees. However, I don't think higher impact fees, combined with lower property taxes, would slow growth-- it would just reallocate the costs thereof.

I'm surprised you don't have that information. What are you basing your comments on if you haven't reviewed the impact fee documentation?

There are two sources for the $500,000 number though in the end they both come down to the same 2019 Impact Fee Study.

1. The Sumter County Impact Fee Schedule shows $3,356 per 1,000 sq ft for a Discount Club. Assuming a 100,000 sq ft Costco, that comes to $335,600. If we assume your 40% number is correct, at 100% it would come to a total of $839,000 or about $500,000 in additional fees.

2. There were several documents created in conjunction with the 2019 Impact Fee Study. One of those documents is a comparison of current fees at 40%, fees at 100%, and fees from several surrounding counties. The 40% and 100% numbers match the $335,600 and $839,000 numbers and therefore the $500,000 in additional fees.

I don't have the background to argue whether $500,00 in additional fees would keep Costco from coming here or whether $1,000,000 in additional fees would stop a hospital project. But until someone with the background cares to comment, I'll believe that those numbers are large enough to cause second thoughts and slow growth.

[ScottFenstermaker]

Originally Posted by Bill14564

I'm surprised you don't have that information. What are you basing your comments on if you haven't reviewed the impact fee documentation?

There are two sources for the $500,000 number though in the end they both come down to the same 2019 Impact Fee Study.

1. The Sumter County Impact Fee Schedule shows $3,356 per 1,000 sq ft for a Discount Club. Assuming a 100,000 sq ft Costco, that comes to $335,600. If we assume your 40% number is correct, at 100% it would come to a total of $839,000 or about $500,000 in additional fees.

2. There were several documents created in conjunction with the 2019 Impact Fee Study. One of those documents is a comparison of current fees at 40%, fees at 100%, and fees from several surrounding counties. The 40% and 100% numbers match the $335,600 and $839,000 numbers and therefore the $500,000 in additional fees.



I don't have the background to argue whether $500,00 in additional fees would keep Costco from coming here or whether $1,000,000 in additional fees would stop a hospital project. But until someone with the background cares to comment, I'll believe that those numbers are large enough to cause second thoughts and slow growth.

You brought up the figure, so I presumed you had the calculation easily at hand. I, obviously, did not.

Anyway: Initial building costs are depreciated and deducted from income taxes over the life of the building, say 30 years. Accepting your figure of $500,000, dividing it by 30 = a tax-deducible cost of $16,667 per year. Offsetting that would be lower property taxes. Do you seriously believe that net amount is going to deter Costco from building? I have reviewed hundreds of business plans. Let me assure you, it would not.

BTW, it is my understanding that the hospital does not pay property taxes. Having it located just on the other side of the county line with the ancillary, tax-paying buildings on our side is a blessing for Sumter County residents.