SMN Archives/Opinions

<< back




Opinions4/11/01


Tax districts provide stability for downtowns

SMN

Timing, as they say, is everything. So perhaps Sylva leaders are correct to put off, at least for a while, any plans to create a Municipal Service District for the downtown area.

Mayor Brenda Oliver said the recent revaluation of real property in Jackson County was among the most important reasons to hold off. That revaluation meant a sizable tax increase for most property owners, and many of those owners are still smarting over the hike.

An MSD is a special taxing district that generates additional revenue through the imposition of an additional property tax. In towns that have MSDs, like downtown Waynesville, the money goes right back into the area where the tax is levied. It can pay for continued physical improvements, promotions, extra attention from town staff, the salary of a downtown director, or for whatever the town feels is needed.

Downtown Sylva is currently in the midst of a significant renaissance. New businesses are finding it an attractive place to locate, and the vacancy rate on Main Street is practically zero. Locals and tourists alike can find something to do downtown. The relatively new director of Sylva Partners in Renewal (the organization of downtown business owners) seems to be well liked and appreciated. In all, it seems the downtown area of Sylva is doing well.

But just as important as timing is momentum. Many of those involved in SPIR have been there since the beginning. New support, in terms of downtown area business people willing to give time and energy, is needed. New blood is vital for a group that relies almost entirely on volunteer support. Without the new volunteers, it’s not too hard to imagine a day when SPIR will lose steam. Elections will occur, and new town aldermen or county commissioners may not be as generous when asked to support the group with cash contributions.

That’s why a regular source of income will, at some point, be necessary. We’re talking about a modest tax increase that won’t be detrimental to property owners but will create a vital flow of cash. Creating a special downtown taxing district and continuously injecting new money, new projects and new ideas into downtown Sylva is the best way to keep it moving forward. Otherwise, the vagaries of politics may quickly kill what many have worked long years to accomplish.

 

Back to Top
The Smoky Mountain News