Though it has a lot of detractors, the property tax remains one of the best ways for citizens to participate in democracy. In a recent op-ed piece for the Boston Globe, authors Joan Youngman and Andrew Reschovsky, fellows at the Lincoln Institute of Land Policy, noted that the strength of the property tax is that citizens can view just how their tax dollars are spent by looking at local budgets. As they noted in the article:
We get the bill, and compare it with the local services we receive. If the comparison is unfavorable, we are motivated to restrict local spending and support local candidates who agree with that view. Linking additional local spending to local taxes is an important source of fiscal discipline.
By contrast, few taxpayers have any idea of the amount they spend annually on sales taxes. Even income taxes that are withheld from paychecks are less visible than bills that must be paid in one or two large installments every year. The transparency of the property tax allows taxpayers to be engaged and to evaluate the performance of their local government to make independent decisions on the mix of taxes and services they prefer.
In Franklin, citizen’s can view the annual town budget simply by showing up at Town Hall and asking for a copy. They can participate in the budget hearings at the Town Council, Finance Committee, and School Committee meetings which take place each spring. The town’s Annual Report, which is published each November, gives line item detail of all income and expenditures. Through these processes, it is truly the citizens who make the calls, either through participation in hearings or by electing representatives in local government. On those years when the local government seeks to increase property taxes beyond 2 ½ percent, citizens participate directly through override elections.
In this way, the property tax is sound and represents an investment by the community for the community. These tax dollars go to fund local services such as police, fire, education and roads, among others. Debate about these expenditures is often robust, which demonstrates that the property tax works the way it is intended.
The property tax is not perfect, and results in some inequities. But it stands up well to the alternatives.
As Youngman and Reschovsky point out: “No one likes paying taxes, but as long as we value the New England tradition of local control over public services, we should appreciate the inherent strengths of our system. With the property tax, the citizenry has its hands on the steering wheel.”
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