Wicomico Taxpayers Receive Back Door Tax Increase

The arrogance of bureaucrats never ceases to amaze me.  They spend the TAXAPAYERS’ money yet act as if it’s from their personal discretionary account.

A current example is the $4 million purchase of the Powerwave campus on the corner of US 50 and Walston Switch Road, east of Salisbury.  Almost daily we hear a sad tale of woe from Maryland Gov. Martin O’Malley or Wicomico County Executive Rick Pollitt about the said state of either the Maryland’s or Wicomico County’s fiscal situation.  There simply isn’t enough money to go around according to these two.

However, a few days ago we learned that the Tri-County Council of the Lower Eastern Shore (TCC) has purchased the Powerwave Campus.  According to comments made by several officials, the TCC needs the space.  Perhaps they do.  I’m certainly in no position to argue that point.  However, several points are easily arguable.

With the purchase of this property, the land and building will be going off the tax roles.  Based on its current assessment, Wicomico County will be losing approximately $30,000 per year in property tax revenue.  This means that county taxpayers will be paying a higher rate next year than they would be otherwise.  This isn’t arguable – this is fact.  One of the benefits of the county’s revenue cap is that big government advocates such as County Executive Rick Pollitt or Councilman Bill McCain can’t truthfully argue otherwise.

Where did the money to purchase this property come from?  That’s right folks, it came from YOU the taxpayer.  According to Mike Pennington, Executive Director of the TCC, as much as $1.2 million in grant funding will be coming from the Maryland Transportation Authority with the balance of the purchase price paid for win either federal or bank loans.  Either way, taxpayers will be footing the bill.

I would be interested to know who voted for the purchase of this building.  Wicomico council members Dave MacLeod and Sheree Sample-Hughes are the county’s representatives on the TCC Executive Board.

The state claims it’s out of money, yet it’s willing to finance the removal of property from the county and state tax rolls.  County officials like Pollitt, McCain, MacLeod, and Sample-Hughes want to end the revenue cap, but don’t object to taking property off of the tax rolls.

In the minds of too many bureaucrats the taxpayer exists to pluck, like a chicken.  Mike Pennington of the TCC justified the purchase of this white elephant, in part, by stating:

“We (the TCC) spend hundreds of thousands of dollars each year in Wicomico County.”

When reminded that “we” don’t spend anything but the taxpayers money, Pennington quickly ended the conversation.

Behavior such as this is the primary argument for keeping the revenue cap in place.  The best way to limit government has proven to be “starving the beast”.  When government wastes money while claiming to be broke, we can only imagine what would occur if they could raise more revenue.

In all fairness, the TCC isn’t the only culprit in this game of keeping tax rates artificially high.  Each year Salisbury University and PRMC (usually through their respective foundations) take millions of dollars of property off of the city and county tax rolls.  The Dresser Wayne property, the Noland building, and the old Daily Times building are but a few examples.  When PRMC purchases property and then rents office space to physicians they are in direct competition to businesses that are required to pay taxes.

PRMC and SU are, respectively, the largest and third largest employers in Wicomico County.  Their economic impact is unquestioned.  However, how long can Salisbury and Wicomico County provide services to these entities when there is no tax revenue derived from their income, plant, property or equipment? 

In the meantime, each new property purchase by a non-profit or governmental entity result in a back-door tax increase for those that actually pay taxes.

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