Quote:
Originally Posted by rage2
The math isn't tough to figure out the number. Let's say the city contribution is $300m and it's funded solely through municipal taxation. If you want to work out how much it costs per home on average:
300m x 48% / 499222 = $288.45
48% is the percentage of total residential property tax revenue (business taxes contribute the other major chunk of taxation, so they'll be contributing).
499,222 is the # of dwellings subject to property tax in 2016.
Of course that's not going to be a 1 time payment, as it's a capital project, serviced by debt over 30 years, so roughly $9.62 a year over the life of the arena plus financing costs. Also as # of dwellings increase, that number goes down. Assuming the same growth rate as our last 10 years, dwellings will increase to 910,881 by the 30 year mark, in which your household payment would drop to $5.27 per year per dwelling plus financing costs.
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I think you are making a fundamental mistake in counting dwellings only. Corporate and industrial properties pay property tax as well, and often at a higher rate (but corporations can then use those payments to lower their income taxes). So to the extent they pay, that greatly reduces the amount per dwelling.