Quote:
Originally Posted by GullFoss
Unless people are going to move to Calgary for the new stadium, the CRL is 100% a subsidy because...office space or condos being built on the west end would have simply be built elsewhere in the city instead. Elsewhere in the city, those taxes they pay would go into munciple funds
Example without new facilities: bob wants to buy a condo and buys in victoria park. He pay a $1000 property tax which goes to a municipal fund. City gets $1000 per year
Example with new facilities: Bob was going to buy a condo in victoria park but instead buys into the Flames condo on the west end. He pays $1000 in taxes to the CRL. That $1000 goes to pay off the loan used to pay for the arena. The city does not get $1000 per year.
Now...and heres the kicker. The city still needs to provide services to Bob and his kids, but their tax base per capita is lower. So everyone elses property taxes rise to make up the funding shortfall.
Call it what you want. Its a subsidy.
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This example assumes Bob's condo is brand new in both cases, which is not necessarily the case.