Sassy Skelton

Since there has been a bit of comments on my first post Warning...Colorado Springs Sales Tax Increase possible in 2008, and some new background information appeared in this weeks Falcon Herald, I thought a follow on post was warranted.

In my previous posting, I question the motivation behind so many government services being funded by sales tax instead of property tax, as is more often the case on the East Coast. Presentatoin of some history is needed to understand how El Paso County and Colorado Springs got to where we are today because several factors beyond TABOR are at play.

There was a time (pre-1987) when property taxes provided 60% of the county's revenue, and sales tax was 40%. So voters approved an increase in the sales tax and a reduction in the property tax. Since then, the county and city's reliance on sales tax for their budget has grown pretty much on a yearly basis.

As budgets grew (as they always do!), the low property tax became a hinderance on the government. Taxes on new homes built weren't enough to cover the increasing demand on services by the growing popluation. So, here we are. A budget mostly driven by sales taxes, a populace resistant to voting FOR increases in property taxes and not enough revenue coming in during a down economy. TABOR and something called Gallagher place restrictions on how much taxes can be increased further complicating the equation.

So, a sales tax goes on the ballot. I wish it lots of luck!

The article says that the county decided to go with the sales tax because in surveys it seemed to stand a better chance than a property tax increase of passing. Deemed more 'fair' because its a consumption tax, seems it distributes the burden equally on all people. However, I content that it actually puts more of the burden on the lower income brackets.

Its a question of proportions. An extra hundred dollars a year or so for someone with a family earning minimum wages is a lot more of their take home pay than it is on a similarly sized family making $70,000.00. Property tax however is more egalitarian. People who make lower amounts of money either don't own a house, or buy lower priced homes which would see a proportionately lower increase. People making more money then to have more expensive houses, and therefore would pay a higher precentage of taxes.

Further, I would think that if property taxes were at an appropriate level, then the increased demands on county services injected by the newly arrived community members would be covered by the taxes on the home.

I cannot say how this would actually occur. For something like 5 years, mil levy increases on D49 appeared on the ballot to build new schools. It took a long time before they passed. But they did finally pass. And the money collected was specfically marked for new school construction and staffing.

I ultimately agree that as responsible community members, there is a shared burden on funding our governemnt to provide sufficient services. I disagree with making the bugets even MORE dependant on sales tax by raising them. That just makes the problem worse. There will be a finite cap on just how high sales taxes can go. When they get much above 5% and closer to 10%, it matters. It will effect where and how people shop.

Alas, that is the boat we're in at the moment. I'll have to ponder more deeply for a better solution because as yet, I don't have one. But there's more information on WHY its a sales tax increase proposal and not a property tax increase.

This is a short notice post to my blog that I will have to update later. This morning is the home-comming parade in Peyton, CO. We've been invited to attend as one of our kids is going to be in the parade. Never been to downtown Peyton so will have to report back what its like (hopefully with some pictures!).

Finally a couple of pictures uploaded...

The girls lining up for the parade. Due to short notice, couldn't work the logistics to bring their horses so rode stick horses instead. Turned out to be a good thing because just behind them were 3 classic cars, 1 of which was a hot rod...VERY loud! Not too appealing to the horses to say the least!

Way off topic of real estate related discussions but warrents publication as widely as possible.

Cases of voter registration fraud in Colorado, including El Paso County have occurred with individuals or groups manning tables or booths outside businesses.

If you did not register using the Standard Form 76A (referred to as the federal postcard application), the Colorado Combination Voter Registration & Mail-in Ballot Application (both on-line applications), or did not register at either a Colorado Motor Vehicle Office or the El Paso County Clerk and Recorder Office, your registration might not be valid.

If you have any questions about your voting status in Colorado, please call this number: 575-8683 (575-VOTE).

Now back to your regularly scheduled real estate programming!

10/18 UPDATE: Taking the day off from home staging to visit May Farms, pictures to come soon!

This past week, it has definately been unseasonably cool here in Black Forest, North and East of Colorado Springs. The weather feels like the on-set of a traditional British autumn. Almost time to pull out the Halloween decorations and get ready for our big Halloween Party.

But first, I am reminded of what has been an annual tradition in our house for the past 2 years - the trip to May Farms in Byers Colorado!

We first discovered May Farms 2 years ago when looking for a pumpkin patch to visit for proper pumpkin hunting with the kids. A few clicks of the mouse and searching on the web lead us to their website. Looked great. Piled into the car and headed up north the 'back' way -- avoiding the interstate and going up through Elbert and Kiowa to Byers.

May Farms delievered everything that was promised on their website. Huge pumpkin patch. Gigantic corn maze (that we haven't tried yet!), snacks and ample grass for the packed picnic we brought along with us.

It was such a hit with the kids that we went back again next year. Only this time we didn't call ahead and found that they were actually closed the day we went (week-day during Fall Break). However, the fine folks took us out to the patch anyway and let us pick 4 prize pumpkins. Brilliant!

Will be going again this year, maybe we'll bump into you if you decide to venture out. Its not far from Denver off of I-70E, and about 1-1.5 hours from Colorado Springs, depending which way you travel.

Can't wait!

According to sources at Yahoo, mortgage rates dropped again for the 3rd straight week to 6.35%. This should be generally good news for the real estate market and sellers. Drops in rates usually stimulate the market with incentivizing buyers to purchase while rates are low. However, the market is expected to still be challenged.

Mr. Frank Nothaft, from Freddie Mac attributes the decline in mortgage rates due to reports that consumer spending may slow further now that the impact of economic stimulous checks is fading. Unanticipated increases in gasoline and food costs have negated the impact of the stimulous package.

Houses are selling. Lower rates should help sellers buy motivating buyers. However, sellers must still remain vigilent. Prepare your home for sale in Colorado Springs by home staging it right with STAGED RIGHT professional home staging. Give your home an advantage over the competition. There is only ONE staging company you should call....STAGED RIGHT!