We’ll Have Fun, Fun, Fun till the Taxman Takes the Good Times Away
Rising property taxes may tear down a beach amusement park that has lasted 117 years at Ocean City, Md., where thousands of Washington and Baltimore families escape the summer heat. The Washington Post reports:
For 117 summers, generations of children have frolicked through Trimper’s Rides on this beach resort town’s signature boardwalk. But this Memorial Day weekend might begin the last summer they circle the antique wooden carousel, fling around the Tilt-a-Whirl and loop through the Tidal Wave roller coaster.
The Trimpers say they are considering closing the amusement park and arcade this year.
Linda Davidson — The Washington Post |
As Ocean City has exploded into a megaresort, property taxes have soared for Trimper’s, which operates on the last chunk of undeveloped land on the town’s three-mile boardwalk. In the past three years, family members said, their assessed property value has tripled, from $21 million to $65 million.
You couldn’t blame the Trimper family if they decided to cash in on the value of their land. But it would be a shame if the family wanted to continue operating the oldest continuously owned amusement park in the United States, and rising property taxes forced them to sell. After all, their income isn’t going up nearly as much as the assessed value of the land. So an owner being taxed on the theoretical value of land that he isn’t planning to sell is then forced by the burden of taxation to sell his land after all.
The power to tax is the power to destroy charming old amusement parks.
We might note that the same phenomenon can destroy environmental amenities. A landowner who prefers to leave his land undeveloped even as development happens around or near him can find the assessed value of his land rising, and thus faces a higher tax burden, and thus feels compelled to sell the land to a developer. I have nothing against development if it’s a market phenomenon, but I don’t like the idea of conservation-minded landowners being forced by the property tax into making a decision they wouldn’t otherwise choose.
Of course, one might object that the Trimpers and the conservation-minded landowners have just as much obligation to pay for the state of Maryland’s budget as any other landowner. And you can hardly expect a big modern state like Maryland to subsist on the taxes it can assess on a three-block area valued at $21 million. So that’s part of the problem–governments today do so much that they can’t be supported with modest levels of taxation.
And then–to bring it full circle–the very people who demand bountiful government services that require burdensome taxes then bemoan the loss of cultural and environmental amenities; so they propose that government subsidize amusement parks, or buy up land and keep it undeveloped, or forbid development in designated areas. Thus requiring more government spending, more taxes, more forced sales, and the cycle continues.
So kids, when you see Trimper’s being demolished to build some more oceanfront hotels and condominiums, remember that big government did it.
Posted on May 30, 2007 Posted to Budget & Tax Policy,Cato@Liberty