Bank of America building purchase a bad idea
March 20, 2013
In regard to the article, “County closes in on $2.9 million land deal,” of March 4: The county of Nevada plans to purchase the old Bank of America building in downtown Nevada City and remodel it to house the district attorney.
The DA certainly needs a professional office building to occupy. But the permanent loss of this prime retail building in the middle of town is a terrible long-term loss for the city of Nevada City and its citizens. When the county buys real estate, that property is removed from the tax rolls. A $900,000 purchase price means about $9,000 in property taxes removed from Nevada City’s tax rolls every year.
If the real estate in question housed a retail establishment, it would generate sales taxes. Arguably, a million dollars in sales could be producing more than $80,000 in sales taxes every year.
Furthermore, the county does not pay personal property tax, the annual tax a business pays for its assets every year. And let’s not forget the many other annual business “fees” and “revenues” the city (and county) collect.
In 10 years, the tax losses will exceed the highly publicized purchase price … all at the expense of Nevada City and its citizens.
It sure looks like Nevada City is asleep at the wheel.
North San Juan