Pollution Credits as Stocking Stuffers

Here’s a last-minute gift idea for a green-thinking loved one. A New York-based environmental group will retire a pollution credit in someone’s honor. The Great Lakes Radio Consortium’s David Sommerstein explains:

Transcript

Here’s a last-minute gift idea for a green-thinking loved one. A New York-
based environmental group will retire a pollution credit in someone’s honor.
The Great Lakes Radio Consortium’s David Sommerstein explains:


The Environmental Protection Agency issues pollution credits to power
plants. Each one allows them to emit one ton of sulfur dioxide from their
smokestack.


Several years ago, one power company donated 10,000 of the credits to the
Adirondack Council. The group’s a non-profit working to reduce acid rain.
Instead of trading them on the open market, where they can fetch up to 800
dollars apiece, the Council decided to retire the credits. Spokesman John
Sheehan says for 50 bucks, the group will send someone a gift certificate.


“That certificate will show that that person has removed essentially one ton
of sulfur dioxide from the atmosphere permanently and that that pollution
will never go up a smokestack anywhere in the country, and it will help
clean up the Adirondacks and the rest of the United States at the same time.”


Sheehan says the Adirondack Council has about 3,000 credits left. His staff
will be around until Thursday to help people give the gift of cleaner air this
Christmas.


For the Great Lakes Radio Consortium, I’m David Sommerstein.

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The Debate Over Mobile Home Parks

  • Because mobile homes can be transported they're not taxed the way permanent homes are. They're taxed like vehicles (when they're bought and sold). Mobile home owners pay a small tax for the small plot of land they sit on. (Photo by Chris McCarus)

People who live in mobile homes might be seeing their property taxes going up. Some government officials say it’s an attempt to tax for the services used and to discourage mobile home parks from sprawling across former farm fields. But others wonder if higher taxes aren’t a form of discrimination against this kind of affordable housing. The Great Lakes Radio Consortium’s Chris McCarus reports:

Transcript

People who live in mobile homes might be seeing their property taxes going up. Some government officials say it’s an attempt to tax for the services used and to discourage mobile home parks from sprawling across former farm fields. But others wonder if higher taxes aren’t a form of discrimination against this kind of affordable housing. The Great Lakes Radio Consortium’s Chris McCarus reports:


(sound of expressway traffic)


The Capital Crossings mobile home park sits on rolling farmland near an Interstate highway. The residents of the 15 homes have moved here either to retire or to make the 30 minute daily commute to nearby Lansing, Michigan. And more mobile homes are being pulled in.


(sound of construction)


Workers are building porches and attaching the skirting between the ground and the house. It’s supposed to show permanence, like a foundation. But mobile homes are not permanent. And mobile homes are not taxed the same way as other houses. They’re taxed like vehicles. Taxed when they’re purchased. Taxed when they’re sold. Still there are no property taxes on the homes. Only on the tiny lots on which they sit.


Some government officials say the $3 a month that these park residents have been paying for property taxes don’t cover the costs of police and fire protection or other government services. They want a tax hike to give local governments more money. Dave Morris is a farmer and the local township supervisor.


“We all have to pay our fair share for services such as sheriff, ambulance, fire department as well as schools. Schools is a big issue of course. And they aren’t paying their share. That’s all.”


But advocates for affordable housing say hiking taxes on mobile home residents is more likely just an attempt to discourage that kind of housing. They say zoning mobile homes out of existence has been tried, but taxing them out is a new idea. Higher taxes will likely lead to mobile home parks closing.”


John McIlwain is with the Urban Land Institute. He says as mobile home parks become more expensive to operate, their owners will sell off to subdivision or big box store developers.


“The numbers are going to be so attractive that the people who own mobile home parks are going to be much more interested in selling the land to a housing developer than in continuing to run the mobile home park. So in time the parks are probably going to disappear on their own anyway and trying to raise the taxes on them specifically is simply going to make that day come earlier.”


In Michigan there is a proposal to raise the taxes on mobile home sites four times higher. State Senator Valde Garcia says the $3 a month that mobile home park owners pay for each home site is not nearly enough.


“What we are trying to do is really change the tax structure so it’s fair to everyone. The system hasn’t changed in 45 years. It’s time we do so but we need to do it in a gradual manner.”


Senator Garcia’s colleagues in the state house have voted to raise the tax to $12 a month. He’d like to raise it to at least $40 a month. The mobile home park industry has hired a public relations firm to produce a video criticizing the tax increase.


“Site built homes pay sales tax only the materials used in their homes and don’t pay tax on resale. Manufactured home owners pay sales tax on materials, labor, transportation profit of a home and they pay sales tax every time a home is resold. ”


The two sides don’t agree on the math. Tim Dewitt of the Michigan Manufactured Housing Association says $3 a month sounds low because it doesn’t show hidden costs. The biggest cost comes when park owners have to pay the higher commercial property tax instead of the lower homestead tax. Dewitt says the park owners then pass the tax to the home owners whose average family income is only about $28,000 a year.


“That’s our worst fear. It could put people who could least afford any type of tax increase into a tough position.”


15 million people live in mobile home parks around the country. And different local governments have tried to find ways to increase taxes on mobile home parks. But Michigan is one of the first states to propose hiking taxes this much. State Senator Garcia says he is not trying to hurt the mobile home industry or make life harder for mobile home park residents. He dismisses the idea that he’s being pressured by wealthier constituents who don’t like to see the mobile home parks being developed.


John McIlwain of the Urban Land Institute says a bias against mobile home parks is part of the mentality that leads to sprawl. When people from the city and the suburbs move a little further into rural areas they want the look and feel of suburbia.


“The mobile home parks are no longer things that they want to see. And so they find ways to discourage those mobile home parks. The ones that are there try to see if they can be purchased, turned into stick built housing or otherwise discourage them and encourage them to move on elsewhere.”


But often the people who move in also want the shopping centers, restaurants and conveniences they once had instead of the mobile home parks.


For the Great Lakes Radio Consortium, I’m Chris McCarus.

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Part 1: Selling the Family Farm to Developers

  • A former farm field in Central Ohio ready for development. It's an increasingly common sight in this area. This land is right next door to a dairy. Worried about his new neighbors, the farmer is planning to sell. (Photo by Tamara Keith)

In the Great Lakes region, farmland is rapidly being developed into homes, office parks and shopping centers. Nationally, farmland is lost at a rate of more than 9-thousand acres a day. But in order for this development to happen, someone has to sell their land. In the first of a two-part series on farmers and the decisions they make about their land, the Great Lakes Radio Consortium’s Tamara Keith introduces us to some farmers who have made the difficult choice to sell:

Transcript

In the Great Lakes region, farmland is rapidly being developed into homes, office parks
and shopping centers. Nationally, farmland is lost at a rate of more than nine-thousand
acres a day. But in order for this development to happen, someone has to sell their
land. Tamara Keith introduces us to some farmers who have made that difficult choice:


At a busy intersection in a newly suburban area, a red barn and white house sit back
off the road. Lush green pasture land hugs the old farm buildings. But the days are
numbered for this bucolic scene.


(sound of construction)


Across the street dozens of condos are under construction… and farmer Roy Jackson has
put this 216-acre farm in Central Ohio under option for development. As soon as the
developer gets approval to build, Jackson’s farm will be no more.


“I’m a third generation farmer and you put your roots down and to see your land be
developed is something I have seen coming, but to actually see it happen across the
road; it’s a sad thing, but it’s progress.”


Sitting on his front porch, Jackson looks our on a neighborhood where once there were farms.


Jackson: “At one point we farmed over 1500 acres and now we’re down to about 300.”


Keith: “What happened?”


Jackson: “We’ve lost a lot of it to development. In the estate of my mom and dad
we had to sell that to settle the estate and that was part of it as well.”


Like many in agriculture, Jackson didn’t own all the land he farmed. He was leasing
it and when the owner decided to sell for development, Jackson was out of luck. Now
he says there’s not enough land left to farm profitably.


“I have a son that wants to farm with me and to do it here, there just isn’t enough
land to sustain two families and make a living for both.”


So, he’s found a big piece of land down in Kentucky, in an area where land is still
plentiful and development pressures are distant. He’s leasing it with an option to buy.
Soon Jackson and his son will have the cattle ranch they’ve been planning for years.
It just won’t be in the state where his family has farmed for three generations.


(sound of heavy machinery)


Workers operate backhoes to grade the ground in an open field that will eventually
be home to some seven-thousand people in a new development. Retired farmer and
agriculture educator Dick Hummel recently sold a portion of this land, allowing
the project to move forward.


“I had some people critical of me because I was going to sell farmland, but on
the other hand, I really didn’t. I traded. You just have to accept that in this
community because that’s what’s going to happen. That’s what has happened. Plus
the fact, it’s been pretty tough farming and this has given a lot of farmers a
chance to sell some land for some excellent prices.”


Hummel sold about 100 acres of farmland and bought some new land – 77 acres –
farther out in the country. His father had bought what Hummel calls the “home farm”
in 1935, and that family history weighed heavily on Hummel when he was deciding what
to do.


“It was harder to decide to sell that land because it had been in my family for many
generations than it was the agricultural part.”


His father bought the land for 100 dollars an acre and Hummel was able to sell it
for a whole lot more. Asked why he sold, Hummel’s answer is simple.


“The offer. I hadn’t thought about selling at all. I didn’t even know that they
would want any of this particular land ’till all at once there were others that
were selling for a price. I heard about that, and first thing I knew, a heck of
a lot of land in this area was selling. So you compare notes as to prices, et
cetera and so forth, and that’s how it happens.”


Hummel says he wasn’t pressured to sell. He’s well past retirement age, and
he says it was the right decision personally. And such is the case for most
farmers who sell their land for development, says Sara Nikolich, Ohio director
with American Farmland Trust.


“You’ve got acres of farmland that can be sold for 20, 30,000 dollars an acre at times.
For a lot of farmers that’s their retirement they’re sitting on, and when you have
development surrounding you and you don’t have any public policy to promote agriculture
and perhaps you don’t have any heirs, you don’t have any options available to you other
than development.”


And so, the personal decisions of individual farmers are transforming some of the
nation’s rural landscape into suburban landscapes.


For the Great Lakes Radio Consortium, I’m Tamara Keith.

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