[StBernard] Hospital tax passes in St. Bernard Parish

[Westley Annis]

A millage amount is still a tax, it's just a tax on property. It's just a
lot lower than sales tax.

As for how the monies were to be generated to pay for the start-up of the
hospital, you had several options:

1) Property tax
2) Sales tax
3) Add-on tax (tax added on to your water bill)

What I see are pro's and con's of each one:

1) Just about everyone pays property taxes, even those that rent. Homeowners
and businesses see their property tax bill directly and pay it directly.
Renter's don't see the property tax directly, but that cost is deducted from
their rent. If the property owner is not collecting enough rent to pay for
the property tax then it is their poor business skills that is preventing
it.

A plus for property taxes is that they can be deducted from your federal
taxes if you meet certain criteria.

Unfortunately, in the state of Louisiana, we have the homestead exemption,
so everyone gets a break on the first $75,000 of value on their property,
except for businesses, which get no exemption. Some home owners will pay no
taxes because the value of their property does not exceed $75,000.

One other fact on property taxes most people don't know. Businesses pay
property taxes not only on the real estate they own, but also on the
equipment they own, even something as small as a computer or copier.

2) Everyone that purchases something within the boundaries of a taxing
authority will pay sales tax. The problem with a sales tax is that it
discourages sales, especially for people who frequently travel outside of
the boundaries of the taxing authority.

Also, it is harder for a taxing authority to estimate how much sales tax
they will collect since it will vary with the overall economy and other
outside factors. How much has St. Bernard's sales tax collections dropped
with the economy and with the BP oil spill?

3) Not everyone has to pay an add-on tax. Lot owners, with no improvements
on their lot, will not have water service and will not get a water bill.
After Katrina, there are a lot of empty lots out there with no water
service.

The other thing to remember about the hospital is that it is not a "free"
hospital. Everyone will have to pay for services rendered. With luck, the
hospital will be self sustaining and not have to rely on government
subsidies, but that depends on a lot of different variables, unfortunately
most of it is political on the local, state, and federal level.

St. Bernard needs a hospital. Not everyone can afford to leave the parish
for medical care. Hopefully, the care and quality of the hospital will be
high enough that those that can afford to leave for medical care will choose
to stay in St. Bernard. It can be done, but it requires a high-caliber
administrator and not someone getting a political payback position.

Westley


-----Original Message-----

It's not a tax, it's a millage amount.




	-----------------------------------------------------
	First, I don't understand why only St. Bernard Parish should be
taxed for
	the hospital since people from other Parishes will be able to use
it.
	Second, I don't understand why this tax would be only on homeowners
& not on
	renters as well.
	Third, I don't understand why businesses aren't being taxed for the
new
	hospital since their employees will have use of the hospital
especially if
	they are hurt on the job.
	
	Terry