Is The Property Tax A Good Tax

• April 6, 2009

The Bismarck Tribune, a publication which can’t be reliably depended on to discern what is and is not tax relief, has an article up today asking whether or not the property tax is a good tax.
Meaning, is it an appropriate way for the government to collect revenue. Which is a good debate to have, I think.
On one hand, the property tax is troubling because it essentially means that you never really own your property. You are endlessly “renting” it from the government, and if you don’t keep up on your “rent” (or manage to be extra-special friends with a politician with some pull on an economic development board or something) the government will take your property away from you.
From that perspective, what does the property tax imply about property rights? That we really, truly have none?
On the other hand, property taxes seem like a good way to tie the expense for certain government services as closely as possible to the people who have (presumably) authorized the government to provide those services. Parks. Schools. These things are paid for by property taxes in the areas where the parks and schools exist. That seems fair enough, and certainly it’s worked in that to the extent property taxes are a problem in this state, they’re being driven high by out of control local spending. If we could just get local officials to quit trying to pass the buck for those high taxes/high spending to the state (and get the state to quit accepting that buck) we’d be set. The taxpayers would hold local officials accountable for that spending, and the problem would be solved.
But, from the larger perspective, I think there are better ways for local governments to collect revenue. Healthier ways. The property rights/property taxes argument alone is persuasive, but then there’s the simple fact that some taxes are healthier from an economic perspective than other. Consumption taxes, for instance, are better than taxes on property or income because consumption taxes don’t punish you for earning more. Creating more wealth. Investing more in property.
Sometimes the manner in which we tax is every bit as important as the amount we’re taxed. Ending the property tax, though probably a pipe dream politically, would be a healthy thing for this state overall.

Tags: Asshats, Domestic Issues, Politics

http://Array Paul Smetana

there is no such thing as a fair tax. That is why you should have many different types of taxes. As a farmer I am hit with high property taxes, high gas taxes, high license fees for all of the vehicals and high sales taxes on imputs. An insurance agent would pay very little of either, but could get hit with sales taxes, gas taxes, and income taxes. Taxes will never be fair, but the best way to tax is to have many different taxes to catch everyone. The average size farm in the north central part of ND is 4000 acres of both owned and rented. The real estate taxes run about $5.00 per acre. That means the the average farm here has to generate about $20,000.00 just to pay the property tax on all of the land in the average size farm. Before someone says that we don’t pay the tax on the rented land, remember that the first thing that is done with the rent we pay is to pay the tax, thus the farm has to generate the revenue for the tax.
Hawk

Consumption taxes, for instance, are better than taxes on property or income because consumption taxes don’t punish you for earning more.

And it also pushes a higher tax burden to the poor, which is always a good thing.
http://www.homerepossessionhelp.co.uk/ Stop Repossession

Hi,

The idea that a property tax would have avoided the current budget crisis is misleading. The sales tax is an immediate reflection of the local economy. The property tax is delayed by the the reassessment cycle. While property tax is stable right now, the real estate market is down sharply as well. Next year and subsequent years are going to show 30% or so declines in property values. So property tax revenue is going to also go down sharply next year. And it will also take longer to recover because of the delay caused by having to be reassessed.
Stop Repossession
J.bob

“Fair tax… would add more tax to the poor.” Hence the term “fair”, as almost 40% of wage earners pay no income tax.
J.bob

Obviously taxes to support city services must enacted in some way, however, how fair really is the poperty tax as it exists now? You`re taxed on the value of your property, but what does that have to do with how much your city “spends” on you? Shouldn`t (maybe) the single person in a mansion pay less than a couple with five children in a smaller house? Who will use the roads, schools, police, ect., more?
Rezistik

I prefer to think that a reworded fair tax would be better than a property tax.

(In its current wording it allows for the government to continue income taxation after x amount of time, along with its sales tax. I feel this would be extremely bad, a rewording would have to remove that.)

I also wonder if fair tax would be detrimental if implemented now, it would put a temporary hold on spending which could be very very bad. It would also add more taxation to the poor potentially.

So I am split on the issue.
ec99

I wouldn’t mind a property tax as long as the revenue goes to services needed by the community. It’s when local government uses them to satisfy the wants of part of the community (dog parks, health centers, the arts) that I get ticked.

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