The document discusses how a community can stimulate its local economy using monetized property tax credits (PTCs) without raising taxes or taking on long-term debt. It proposes that a city government could identify future funded projects and pay contractors in PTCs that are transferable, allowing contractors to pay employees and suppliers who can then apply the credits to their own property taxes. This has the potential to generate more economic activity than the original project amount as PTCs circulate within the local economy. PTCs work because virtually everyone pays property taxes, giving the credits broad acceptance that does not require changes to accounting systems.
3. And where do communities usually look for that money? External sources …and if outside sources are not forthcoming? How can a community create new money from within? Federal and State government Outside investors
13. A service station exchanges $500 in gas cards for PTCsRemaining PTC’s remain ‘as credit’ against future taxes with the county assessors office
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15. Rental agency staff applies their bonuses against their property taxes………..$5000 +……..$1000 +……..$4000 +……..$1000 +……..$4000 $15,000 From $5K in PTCs
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17. They can immediately improve a balance sheet as a tangible asset
25. Monetizing property tax credits How a city government would get started Identify future funded projects that seem like good candidates. Best would be those that generate new tax revenue. Discuss with suppliers: Would youaccept PTC’s for the project if it was moved into current year? (If not, the project is performed in the scheduled year) Discuss with subs: Would you accept PTCs from prime if it meant work for this year rather than next year. Build and share list of suppliers and subs that will accept PTC’s. Begin project funding
26. In summary… In good times, PTCs are not necessary. Money would be plentiful and resources would be used to their fullest. Economic Activity of a Community Money Motivation Employed Citizens = Thriving Businesses Desire to Spend and Invest Available Capital
27. In summary… In bad economic times, outside capital contracts result in economic distress. Economic Activity of a Community Money Motivation Employed Citizens = Thriving Businesses Unemployed Closed Businesses Desire to Spend and Invest Available Capital
28. In summary… Using Property Tax Credits, local communities can create their own stimulus with less reliance on outsiders Economic Activity of a Community Money Motivation Employed Citizens = Thriving Businesses Re-employed Workers Fewer Struggling Businesses Desire to Spend and Invest PTCs Available Capital Local projects
