can someone explain why property taxes are tied to the value of the home?

[MtnMan]

Since property taxes primarily fund education, they're tied to home values so you can have good schools while the ghetto kids make due with their shitty ones.

Every state does it different, only a small percent of what I pay goes to the schools, but that doesn't mean that can't find a bunch of rat holes to pour it down.

Here in NC, it's paid only to the county and municipality, not the state.

 

[bignateyk]

I have a hard time feeling sorry for someone who makes minimum wage but could be a multi-millionaire just by selling their house.

Why should someone be forced out of the home they own because of circumstances out of their control? Someone might have owned that nice beachfront property for decades, and is now retired and enjoying life, but suddenly they are forced out of their house because of outraguous property taxes?

Property taxes should be based on the purchase price of the house (and should be capped on x% of purchase price), and should never be allowed to go up at a higher rate than inflation.

 

[Capt Caveman]

Why should someone be forced out of the home they own because of circumstances out of their control? Someone might have owned that nice beachfront property for decades, and is now retired and enjoying life, but suddenly they are forced out of their house because of outraguous property taxes?

Property taxes should be based on the purchase price of the house (and should be capped on x% of purchase price), and should never be allowed to go up at a higher rate than inflation.

And if the High School needs renovation/replacement, how does the town afford it?

These individuals could tap into their equity since it has increased by millions to pay any property taxes.

 

[God Mode]

No wonder so many of our neighborhoods look like slums post apocalypse. No wonder I rarely see nice newly built homes instead the dingy and deteriorated 1920's crackhouse looking places all over the US. Tax should be based on lot size and utility consumption since this seems like a good indicator of how many people live in the home.

 

[bignateyk]

And if the High School needs renovation/replacement, how does the town afford it?

These individuals could tap into their equity since it has increased by millions to pay any property taxes.

Flat income tax? Or flat tax based on income and the number of kids you have attending public schools?

 

[ShawnD1]

Property taxes should be based on the purchase price of the house (and should be capped on x% of purchase price), and should never be allowed to go up at a higher rate than inflation.

House #1: $20 property tax
House #986346884: $20,000,000 yearly property tax

Yeah I'm sure that's not considered declaring war on the working class. You thought you were going to buy a house some day? LOLLOLOLOL dream on. You must be a renter for life because the only affordable properties are the ones owned for 50+ years by the same person.

 

[yllus]

There's actually a secondary reason for property taxes: To encourage best-possible use of land. As a piece of land increases in desirability, property taxes rise in concert in order for the land owner to have an incentive to better develop what lies on that land.

That typically leads to increased density which some people scoff at but is a vastly superior alternative to the situation that's developed in nations like India where hardly any buildings rise above 3 stories and the result are never-ending slums in all directions.

 

[ShawnD1]

There's actually a secondary reason for property taxes: To encourage best-possible use of land.

The taxes in Edmonton are based on assessed property and building value. The property tax on the condo I just bought is a bit under $1000/year. Let's say there's about 10 units per floor and it's a 4 floor building, that's $40,000 in property tax. If you put houses down, it would definitely be far less than 40k/year in taxes.

If anything, that model discourages building. Whoever owns the land would pay far less in taxes if the land were used to create a parking lot.

 

[yllus]

The taxes in Edmonton are based on assessed property and building value. The property tax on the condo I just bought is a bit under $1000/year. Let's say there's about 10 units per floor and it's a 4 floor building, that's $40,000 in property tax. If you put houses down, it would definitely be far less than 40k/year in taxes.

If anything, that model discourages building. Whoever owns the land would pay far less in taxes if the land were used to create a parking lot.

I imagine the reason the tax is based on land value and not building value is because land is valued for more than what's on it - it's actually perhaps more importantly about location. Someone biding their time with a parking lot (happens a fair amount here in Toronto) is incentivized by ever-rising property taxes to sell or develop ASAP.

 

[jagec]

That is why you are never truely an OWNER (If you are, no one can take it from you).

So there is no such thing as "ownership" in your world?

 

[Lithium381]

via eminent domain, the government owns everything. Had land in your family for 8 generations? the government now owns it. it was worth 8 million due to location and a nice lake? you'll be lucky to get 500,000 for it based on their evaluation of "fair compensation"

 

[jagec]

via eminent domain, the government owns everything. Had land in your family for 8 generations? the government now owns it. it was worth 8 million due to location and a nice lake? you'll be lucky to get 500,000 for it based on their evaluation of "fair compensation"

This has always been the case, in every nation throughout human history. It's a pretty simplistic view of "ownership" that demands that there is no way that anyone could ever deprive you of it under any circumstances.