Quote:
|
Originally Posted by wehatetoquitit
California answered the question of escallating property taxes long ago with proposition 13. This proposition locked in the assessed value on the date of passage and is only allowed to increase at the rate of 1 to 2 percent per year, unless the property is sold. Then the property is assessed at its full market value and the new value (for tax purposes) then escallates at 1-2%/yr.
The purpose of this bill was to insure that older, retired, or those on fixed income would not be forced from their homes do to increasing property taxes. Transfers between famly members is exempt from the re-assessment.
|
In California then, a 45 year old, at the peak of his earning ability, who has been in his house for twenty years has a great deal. He has property that is worth a LOT more than what he paid for it and super low property taxes. Meanwhile, a twenty five year old, just struggling to get started is going to have to pay a fortune for a house and get zapped with full current value property tax that will probably be a barrier to owning his own home. Part of the reason that property is so expensive in parts of California is because of laws like this. Only people with uber money can afford to live there and they bid up prices.
This may have helped some seniors but it's also a great example of the "I've got mine!!" philosophy. "I have my house and a great property tax shelter, nuts to everyone else!!" Also, its not a very discriminating solution. Why do seniors or actually long term California property owners, as a class of people, deserve blanket exemption from property tax? Many seniors (and long time property owners) are quite well off and can easily afford property taxes.
I recognize that our New Hampshire property tax system, and reliance on it as the primary source of state revenue, creates its share of problems. Others have pointed to various tax systems used by other states as the solution, but those states simply shift the tax burden around and in most cases are fiscally worse off than New Hampshire is. The most important control on the rate of any taxation system is
spending control and spending control is far more difficult the further the government body is from the people. Federal government spending is out of control because it is almost impossible for people to exercise control of it. Yes, we constantly struggle with the paying our public bills in New Hampshire. It's painful to pay our taxes. Isn't that a good thing? Before we open our wallets to government don't we want to make sure that the spending is really needed? Doesn't tax pain cause us to look more closely at what the money is being used for. Most people pay as much or more in federal taxes than property tax. But the federal government plays a psychological trick on us and bleeds our money from us week by week in payroll taxes before we even get to see it. And think of all the wasted spending and fraud by the federal government. At least most of the property tax is used for education funding.