Friday, February 10, 2006
Who Wants to Raise Your Taxes? Homebuilders Contribute Less Than the Profit on One House Trying To Raise Your School Taxes
Sometime between now and a couple of days after the March 21st primary election, school tax hike advocate committees will report multi-thousand dollar contributions from homebuilders.
$5,000, $10,000 and even $25,000 contributions from developers sound like a lot of money, don't they?
Especially if you're a homeowner who can't afford a tax hike.
McHenry County Blog looked at all Carpentersville School District 300 homebuilders’ contributions to school districts throughout the Chicago metropolitan area.
Now, let’s take the next step.
Developer contributions in multiples of $5,000 are a big deal in local politics, but they represent less than a fraction of the profit on one home for the builders whose profit margins could be found.
A lot less.
Let’s take the lowest profit margin that I was able to find—9.8%--the nationwide average profit margin.
According to the November 13, 2005, Los Angeles Daily News,
So, it certainly is reasonable to conclude that builders making $5,000 and $10,000 contributions in the coming school referendum campaigns will be donating less than the profit on a single home.
To read how much District 300 developers make on each housing unit, click here.
$5,000, $10,000 and even $25,000 contributions from developers sound like a lot of money, don't they?
Especially if you're a homeowner who can't afford a tax hike.
McHenry County Blog looked at all Carpentersville School District 300 homebuilders’ contributions to school districts throughout the Chicago metropolitan area.
Now, let’s take the next step.
Developer contributions in multiples of $5,000 are a big deal in local politics, but they represent less than a fraction of the profit on one home for the builders whose profit margins could be found.
A lot less.
Let’s take the lowest profit margin that I was able to find—9.8%--the nationwide average profit margin.
According to the November 13, 2005, Los Angeles Daily News,
The average profit margin on a new house dropped to 9.8% last year from 12% in 2002, according to an NAHB survey of the 10 largest builders in the country’s 50 leading metropolitan markets.To be able to afford to give $5,000 to a school tax hike committee a builder would have to sell a home for $51,020. There is nothing as cheap as that for sale in Carpentersville District 300 or Woodstock District 200.
So, it certainly is reasonable to conclude that builders making $5,000 and $10,000 contributions in the coming school referendum campaigns will be donating less than the profit on a single home.
To read how much District 300 developers make on each housing unit, click here.
