Passing the Bucks
A topic discussed at some length at the last council meeting (and earlier this year) was the raising of the electric franchise tax, er, I mean, fee, which Xcel charges its customers and passes through to the city of Maplewood. This past week all of us Maplewood residents got letters in the mail from Xcel advising us of the proposed increase, suggesting we could attend tonight's council meeting or call city hall if we had concerns about the 440% increase in this tax, er, I mean, fee. Apparently Xcel is not eager to get the blame for this.
Perhaps in response to such phone calls, the city of Maplewood has put up a document explaining the fee increase. With clumsy legerdemain that would make the lowliest street magician blush, the document contends that the fee increase should really be regarded as a reduction in taxes.
No kidding.
Besides the amusing proposition that "not increasing your taxes as much as we might" = "tax cut," the chart provided in the document is enlightening. Even by the city administration's calculations, we can see that the fee increase is shifting the burden of city expenses. Where is it being shifted? Well, if you're a homeowner with property in the lower valuation range ($150,000 or less) you're at best looking at a wash. If you are a renter or run a non-profit agency or other property-tax-exempt entity (wouldn't this include churches?), this will of course be entirely an increase in your taxes, I mean, fees. On the other hand, if you own a $400,000 house, you'll be able to rest, comfortable in the knowledge that you'll have an extra $44 in your pocket, helpfully provided by low-income renters, Second Harvest Food Bank, and the like, thanks to the Maplewood City Council.
I wonder if it really increases the appeal of this proposal to market it as a plan to redistribute wealth from those with the least assets to those with the most?
It might be an interesting meeting tonight. I wonder if some residents who have not previously had the Clowncil on their radar got a wake-up call in the mail from Xcel.
Perhaps in response to such phone calls, the city of Maplewood has put up a document explaining the fee increase. With clumsy legerdemain that would make the lowliest street magician blush, the document contends that the fee increase should really be regarded as a reduction in taxes.
No kidding.
Besides the amusing proposition that "not increasing your taxes as much as we might" = "tax cut," the chart provided in the document is enlightening. Even by the city administration's calculations, we can see that the fee increase is shifting the burden of city expenses. Where is it being shifted? Well, if you're a homeowner with property in the lower valuation range ($150,000 or less) you're at best looking at a wash. If you are a renter or run a non-profit agency or other property-tax-exempt entity (wouldn't this include churches?), this will of course be entirely an increase in your taxes, I mean, fees. On the other hand, if you own a $400,000 house, you'll be able to rest, comfortable in the knowledge that you'll have an extra $44 in your pocket, helpfully provided by low-income renters, Second Harvest Food Bank, and the like, thanks to the Maplewood City Council.
I wonder if it really increases the appeal of this proposal to market it as a plan to redistribute wealth from those with the least assets to those with the most?
It might be an interesting meeting tonight. I wonder if some residents who have not previously had the Clowncil on their radar got a wake-up call in the mail from Xcel.
posted by Frostbrand @ 3:18 PM
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