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Shhh! Don't tell politicians and bureaucrats the recession is over. If you do, they might raise taxes on your business.
Consider what's happening in Lee County, widely considered a pro-business area. Despite pleas from the construction industry, commissioners there are waffling over a proposal to raise taxes on new construction, also known as “impact fees.”
During the recession, Lee County commissioners cut taxes on new construction by 80%. But as homebuilding and commercial construction recovers, politicians and bureaucrats are licking their chops for more taxpayer money.
For example, county government would slap a $12,985 tax on every new home built in Lee County under a proposal now being considered by the commissioners. Currently, homebuilders and their customers pay a one-time tax of $2,942, already a significant amount of money.
Taxes on new construction have a marginal impact on the county's budget, but they place an inordinate burden on homebuyers. In particular, the tax is likely to harm homebuyers of modest means, the bulk of the market in Lee County.
But it doesn't take much for politicians to smell money when it starts appearing. Our advice to taxpayers: Watch your pockets.
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