Agenda - Council - 10/25/1983 - Laserfiche WebLink

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I I I I I 18 TAX LOSS If taxable land privately owned were acquired by a county'for a landfill, the municipality or township, school district, or other special taxing district would lose property'tax revenues. Private acquisition and devel- .opment of a landfill would likely increase tax revenues for a community, particularly if the site were in an area zoned agricultural. Should communities be compensated for property taken off the tax rolls through public ownership of a landfill? If so, should communities be compensated for tax losses resulting from other public lands--for example, regional parks, airports, sewage treatment plants and interstate highways. Airports, highways and similar facilities generate income to the commu- nity that encourages and stimulates other businesses. They also increase employment and property tax revenues. Solid waste landfills, on the other hand, do not generally encourage other businesses. Despite their size, landf$11s generally do not provide many jobs or much tax revenue because they are not capital intensive. During their operation, land- fills may also affect surrounding property that is difficult to measure or analyze. Furthermore, most solid waste landfills once closed have limited uses for subsequent development. Similarly, if taxable land, privately owned were acquired by a county for resource recovery, the municipality or township, school district or other special taxing district would lose property tax revenues. Although the amount of land acquired may be much less than for a landfill, the lost revenues may be substantial. The reason is that a resource recovery facility is more likely to be located in the more densely populated, urban portions of the Region, where land uses generate more property tax revenue than rural areas. Resource recovery facilities may initiate adjacent development, but it is by no means clear that they will do so. Consequently, if property is taken off the tax rolls because of public ownership, then a payment in lieu of taxes IPILOT) should be paid to the local unit of government, school district and special taxing districts annually during a facility's Operation. The payment should be calculated at the current year mill rate, and should be over and above any statutory levy limitations. The taxes or PILOT should be based on an industrial property tax classification rate. The industrial classification permits application of the highest tax rate allowable. In principle, the PILOT should be paid by the users of the landfill or resource recovery facility--that is, the waste generators...The payment can be accomplished by a taxing mechanism requiring the county or other public body to compensate the municipality or township the amount of taxes levied thereon for municipal or township purposes based on an indus- trial property tax classification rate or the county shall contract with the municipality or township for a PILOT. Landfills create some uncertainty about the future value of the land and adjacent properties, not to mention other adverse environmental or socio- economic impacts upon the host community. Consequently,' the Legislature should require all owners of landfills to compensate the municipality or