Comments for LeoFoley's Blog

Comment on Paying for the ‘Red Awnings’ by intuitivereason

intuitivereason — Wed, 18 Jan 2012 06:49:04 +0000

Someone asked the other day why, when they had paid for their land, they should also pay land tax.

It’s a good question, and to some extent a fatal hole in explaining any partial land tax system.

I’m coming to the conclusion that the only way to successfully introduce land tax is to introduce it in complete form; that no price is paid for land, but that land tax is thereafter paid at the full market rate required to maintain a zero price for land.

The system should be established at the state level, not federally.

Both stamp duty and payroll tax should be simplified and reversed.

A portion of the take should be utilised to monetize community benefit.

A reasonable estimate of the annual levy would be the product of the current housing interest rate and land value.

Without question, the state government should pay out the value of land resumed under this arrangement, in proportion to the initial charge. If it needs to do so (and it would), the costs for capital on the market would be substantially less than the income returned.

Comment on Our Rating System by leofoley

leofoley — Wed, 02 Nov 2011 05:09:52 +0000

Assessed Annual Value (AAV) is the rating system used through most of Tasmania. But no-one knows why and no Councillor takes responsibility for it. It is an anachronism.
AAV is based on an estimate of the rental value of the property (land and buildings). Since most of them are never rented, it is a fictitious figure estimated by bureaucrats who guess at the result. It is absurd. A family needs a bigger house to accommdate the kids, so AAV charges them more than the ‘Double Income No Kids’ living next door. So much for supporting ‘working families’!
A rate based on land value is fair, because it is the Council services (and other government and private services) that gives the land its value, so rating on Land Value is a proper reflection of the benefit received by the householder. In the example above, both households would pay a similar figure – because they receive the same benefit.
Land Tax could also be based on land value, at a fixed rate. That would make it fair, too. At present, all landholdings are accumulated, and the more you own, the higher your rate of Land Tax. It is primarily a wealth tax, so if we want one of those, then lets call it that. A land tax should be simply that – a levy on the land we own; no exemptions, no privileges and no sneaking in ideological taxes on ‘wealth’. That sets it up to fail.
Thanks for your comments, Leo

Comment on Our Rating System by jillian paterson

jillian paterson — Wed, 02 Nov 2011 04:16:05 +0000

Leo,
As a Victorian visitor who received your flyer. What is AAV because I have people saying to me we need to sort out Land Tax here in Vic? I printed the article by Jessica to see if that sheds some light. I don’t think people with money should be allowed to buy up big/monopolise and then make lots of loot on rentals, to those who cannot buy. We have a threshold here in Vic ($125,000) which means you can own a property up to that amount and then you pay land tax over that. Not sure if that is the same as AAV?
I will read your pages with interest. Hope you do well.
jill

Comment on Leo Foley to stand for Alderman by leofoley

leofoley — Sat, 22 Oct 2011 01:59:40 +0000

Hello Roald
I am in favour of public access to public spaces. That means I support access to the foreshore. I certainly supported the initial idea of a track around the foreshore, which was opposed by local residents. A cycleway is a much bigger project, and very much more costly. I’d have to be convinced that a cycleway jutting out into the river is financially responsible, and weather resistant. I doubt it. I think we can get cyclists from Marieville Esp to the city in a better way.
Similarly, the mountain should be accessible to the public – especially when it snows. That’s the best time up there. A cable car is one way of providing access, and I could support an environmentally friendly cable car. Kuranda is OK, but there are even better ones these days. Langkawi comes to mind. A cable car will be a privately funded project, and I don’t think there is any proposal on the table at this stage. I’m happy to look at one, though. I think the best chance of getting one operational, with least objections, is from the Tolosa Valley area. When we are one city, and think as one city, that won’t sound so outlandish.

Comment on Leo Foley to stand for Alderman by Dr Roald Fullerton

Dr Roald Fullerton — Sat, 22 Oct 2011 00:20:31 +0000

Dear Leo,

I feel strongly that a Battery Point foreshore walkway should be built with cycle access as well.
I also feel the objections to building a cable car as based on the design in Kuranda near Cairns would not be environmentally damaging.

What are your opinions on these issues?

Regards,

Roald Fullerton

rfullert@iinet.net.au

Comment on Abandon Fixed Charges by leofoley

leofoley — Fri, 07 Oct 2011 22:54:30 +0000

The rates we pay are a direct result of Council expenditure not the system of calculating them. I argue for a fair system, and that is Land Value Rating.
But that is just the start.
A separate issue is the expenditure by Councils. That is where the escalation has been. Hobart City Council has over 300 expenditure programs. Most people wouldn’t know about more than 20 or 30. I am advocating more citizen participation, including a budget forum, to decide on priorities and (indeed) which programs might be cut. Give the people a say.

Comment on Abandon Fixed Charges by intuitivereason

intuitivereason — Fri, 07 Oct 2011 12:07:03 +0000

Good point on the fixed charges. However rates would have escalated in recent years under LVT, just as they did under AAV. That in fact is the whole point – to absorb any increase that would accrue to land value into rate charges. I suppose the shock might have been less as rerating is an easier process and could be done yearly under LVT.

To get the really beneficial effects such as speculation minimisation you would need to significantly increase the rate.

Comment on Candidates are out there! by leofoley

leofoley — Thu, 29 Sep 2011 11:40:26 +0000

No, I don’t like term limits, There are some good people on Councils who would be barred. We need them to contribute. I’d rather the electors choose wisely between candidates, culling out the dead wood, and that means they have to know the candidates better. Small-group, multi-level democracy does that best, I think.

Comment on Candidates are out there! by intuitivereason

intuitivereason — Thu, 29 Sep 2011 07:09:10 +0000

Two term limits for Council members?

Comment on My simple philosophy by Christopher Polis

Christopher Polis — Mon, 26 Sep 2011 22:16:18 +0000

Yes, in the immediate situation, the replacement of all state and local taxes with a land value tax would be great.