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Fall 2000 Newsletter
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Contents
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"DOUBLE
TAX" TO BE REMOVED
by: James A. Nearhood, PLS The transfer tax charged when a parcel of property changes title from one person to another has causes cost problems for developers and builders in Erie County, New York. This is about to be resolved by the County Legislature. The following is an article from the September 19, 2000 newsletter put out by Michael H. Ranzenhofer, Legislator for the 16th District, reprinted with permission: Elimination of Erie County=s Real Estate Transfer Tax In 1990, the Erie County Legislature enacted the County =s Real Estate Transfer Tax. Since its inception, the tax has created an extra financial burden for homebuyers and builders alike. Erie County has been the only one of the state=s 17 westernmost counties to charge an additional transfer tax on top of the normal state transfer fee.The transfer tax is applied to the sale price of homes when ownership is transferred. Currently, $5 per $1,000 of a homes =s sale price is charged by Erie County to home sellers on top of a similar $4 per $1,000 tax levied by New York State. The county=s transfer tax translates into an extra $500 fee on the sale of a home worth $100,000.Because of the way the law is written, the same parcel of land may be taxed as many as three times as it passes from landowner to developer, developer to home builder and finally to the new homeowner. This has created an extremely huge disincentive to invest in real estate in Erie County. This tax was created to provide a dedicated avenue of funding to the Niagara Frontier of Transportation Authority (NFTA) and generates between 6 and 7 million dollars in annual revenue. However, since the dedication of one-eighth of one percent of the county =s sales tax revenue towards NFTA funding, the county no longer utilizes the tax for its original purpose.During the July 13th session of the Erie County Legislature, I supported the passage of a resolution calling for the phase out of the county =s real estate transfer tax over the next three years.Effective January 1, 2001 the Adouble tax@ on developers and builders, resulting from the splitting and reselling of property will be eliminated. In 2002 the tax will be cut by 50 percent and in the year 2003 the tax will be eliminated.This was the right thing to do for the residents and taxpayers of Erie County. Such bold initiatives to reduce taxation will go a long way in strengthening our local economy. Outsiders from around the country will begin to look to our area as a place to live and do business. There is still a lot of work to do, but we are finally headed in the right direction.
By: Al Vanderpoel, P.E. How does a consulting engineering firm keep up with the latest innovations? And how does a client know that they are getting the most current technology? Well, it =s no mystery that consulting engineers must stay on top of the latest innovations, or they will not survive in a very competitive market. Clients can be assured that they will have current technology in the design of their project. It all comes from a wide variety of sources.The most obvious place to learn about new ideas is from colleges. Continuing education is a good market for the colleges, and they make sure engineers know what they are offering. As an example, I graduated from the University of Wisconsin, and I would guess that they send me fifty flyers each year on different courses they offer. Usually I attend one course a year, and with the variety of topics, it is easy to refresh skills and learn new ones. Continuing education is a must to maintain the skill level needed. Another way to learn from colleges is through the new engineers that are hired on. The new technology that these engineers learned while in school is passed along to the Aold timers@, and the inner-office skills for everyone improves. The new employees think of what they learned as routine, but much of it is on the cutting edge.Trade magazines are another valuable source of information. There are any number of these publications, which are sent to us free (and paid for by their own advertising). While 99% of the articles in these magazines are about projects that we might only dream of constructing, occasionally there is an article that fits with the services we provide. Three years ago I read about sludge beds, and I thought at that time that this might have merit. Currently we are seeing the construction of just such a project that we did the design for at Youngsville, Pennsylvania. And finally, sales representatives keep us informed of what =s new in the market place. We have several sales representatives who stop in on a regular basis, and provide us with information on what they market. Once again, it may be that 90% does not apply, but it is intriguing how often something comes in that is exactly what we are looking for. And in our search for the best product, we often get on the phone to the sales representatives, and ask for information.So, it is not a hit or miss proposition that gives you the best product for your money. We are very aware that we must stay up with technology, and we pride ourselves on the efforts we make to provide the latest innovations for your use.
By: Chris Ernst, E.I.T. What is the biggest problem face by rural landowners wishing to develop their property or looking to sell to someone who will? Most would probably say sewage disposal. The typical rural landowner does not have accessibility to a community sewage treatment facility and may not have the type of soils on their property required to construct a conventional on-lot system. A conventional on-lot system is comprised of a treatment tank that is used to remove solids and an absorption area that distributes the liquid from the treatment tank into the soil. A minimum depth of Agood@ soil between the soil surface and the limiting zone (high water table, bedrock, etc.) And an acceptable percolation rate must be met before a conventional system will be permitted.If the conditions described above cannot be met, then an alternative method must be implemented. Constructing a small flow sewage treatment facility (SFSTF) is the common alternative method used in our area. An SFSTF is comprised of a treatment tank used to remove solids, a self-contained absorption area used to filter the liquid leaving the treatment tank, and a dose tank used to control the amount of liquid entering the absorption area. A liner prevents the liquid from entering the surrounding soil and directs it toward a discharge pipe which leads to a chlorinating tank. The treated liquid is then discharged into an acceptable waterway. The major drawbacks to the SFSTF include the time to get approval (12-18 months), the increased cost to the landowner, and accessibility to an acceptable waterway. One alternate sewage system that is acceptable for use in the state of Pennsylvania when an acceptable waterway is not available is the individual residential spray irrigation system. The spray irrigation system treats the sewage in a manner comparable to the SFSTF and then discharges the liquid onto a spray field through a system of sprinklers. The spray irrigation system is a solution when there is no waterway available for the discharge, but is it the best solution? A large area may be needed for the spray discharge, it is questionable how effective the system is during the winter months, and it may be undesirable to have effluent discharged into the air by many landowners. The Ground Infiltration Treatment (GIFT) system is an experimental design that is currently under review by the State of Pennsylvania. The GIFT system also treats the sewage in a manner comparable to the SFSTF, but its discharge is released into the ground instead of the air. An experimental permit must be granted by the state prior to the construction of a GIFT system. This type of on-lot design may prove to be more effective and desirable than the spray irrigation system when there is no waterway available for discharge. The ideal situation for a rural landowner is to have soil that is capable of supporting a conventional on-lot system. These soils can be very difficult to find in our area and often the landowner is faced with the decision of installing an expensive alternate system or not developing at all. The sewage disposal industry must continue to try and find new methods that will effectively treat sewage in adverse soil conditions and be affordable to the average landowner wishing to develop. |