Editorial

By Stewart Dobson - May 09, 2008

Tax rates don’t matter. Tax bills do. That’s what seems to get lost in translation when governments talk about their budgets and how they plan to pay for them.

That was the situation this week when the Worcester County Commissioners announced that it appears they will leave unchanged the property tax rate of 70 cents per hundred dollars of a property’s assessed value.

Not raising the rate might sound like good news, but it is not, since it means that property owners not protected by the tax cap for residents, will see an increase in their bills.

This increase is because most properties have higher assessments going into the new fiscal year, even though the surge in property values resulted from real estate prices that levitated above reality before crashing last year.

Consequently, government at all levels will be operating on income generated at the beginning of the real estate cycle while property owners are mired down in the here and now.

What this means is that sooner or later government will have to come to terms with the same economic malaise that is already affecting property owners, particularly in northern Worcester County.

Unlike the private sector, which experiences all the volatility of this especially volatile tourist destination market, government seldom retrenches by doing such things as freezing payrolls, reducing hours or limping along the best it can with what it has.

The public shares a good portion of the blame for this, as no one is willing to accept cuts in favored programs and services. It is always someone else’s favorite that should bear the burden.

Given the circumstances that now envelop this area, and the entire country, for that matter, there has to be a point where the public and governments will be forced to make some hard choices.

So let’s not obfuscate the situation by focusing on the tax rate. Let’s go to the heart of the matter and talk about the bill.

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By Stewart Dobson - May 05, 2008

Joe Kroart of Ocean Gallery on the Boardwalk has had his share of zany ideas over the years – driving a car off the fishing pier was one proposal that never made it – but the man does know something about promotion and free advertising.

Moreover, his latest suggestion is anything but zany. What Kroart wants to convince the business community to do is offer free gasoline to visitors this summer.

Borrowing from a 1970s publicity stunt by former Mayor Harry Kelley, Kroart believes if businesses are willing to give gas credits to their patrons this summer, the news would not only spread far and wide, but would entice more people to Ocean City.

It worked for Kelley during the oil crisis of 1973, when the availability of gasoline was the issue. Kelley, who had more than a few brash moments during his tenure, announced that Ocean City had plenty of gas and that he would guarantee visitors the opportunity to fill up if they visited.

That declaration got plenty of play in the press and, apparently, it worked.

What Kroart wants to do is similar, but a little more sophisticated than Kelley’s brazen boast. He is suggesting that resort businesses select a specific period for the free gas promotions, such as when business is generally slow, and that a gas credit be deducted from a customer’s bill. The size of the credit would be commensurate with the amount spent.

What would be worse, Kroart asks, an empty seat or an empty room or giving a gas credit of $10 or $20?

Some businesses could do it and some couldn’t, but the point of the exercise is goodwill and good coverage, he says. He might be right and it’s certainly worth considering as Ocean City moves toward a summer loaded with questions.

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