Concerns About Property Taxes

 A Distortion of Genuine Constitutional Rights

by Lee F. McKenzie (Utah)

As we consider our mutual concerns about taxes, might I suggest that we reflect upon the proper role of our government as outlined in the Constitution, that being, to preserve the rights of our citizens to life, liberty and property.

THE FUNDAMENTAL PROBLEMS ASSOCIATED WITH PROPERTY TAX

1. When we as law abiding citizens consider our relationship to State and County government, the greatest fear and threat we have is that our government will take away our property should we become unable to pay property taxes. Our homes are things which we have worked a life time to earn and pay for. The forceful threat of losing our homes is very intimidating and by its nature puts us at odds with the very government which is intended to defend our rights of property.

2. By comparison to excise taxes, sales taxes, import taxes and income taxes, property taxes are the most threatening of all the types of taxes currently used by our government.

3. Whereas import, sales and income taxes are "one time" taxes, property taxes are levied year after year on the same article. This is a concept which seems unfair, particularly when we initially pay sales tax on the materials used to build our homes. The unceasing claim that government exercises upon our homes to a significant degree has taken away our right to property.

4. Income taxes, excise taxes, and sales taxes are typically collected incrementally throughout a year as we earn income or purchase merchandise. By contrast, property taxes are collected one time per year. The financial pressures of life make it all too difficult for retired home owners who have finally paid for their homes to suddenly in November make very large property tax payments.

5. Unlike all other forms of taxes, property taxes discourage citizens from improving, beautifying and otherwise increasing the value of their property. As a consequence property taxes are a deterrent to improving our neighborhoods.

6. One major concern which has been expressed regarding property taxes is the severe burden which they have become for retired people and those of low income. The threat to these people is of course potential loss of their homes to the government or the need to sell and not be able to enjoy that which they have worked a lifetime to build up.

7. Excluding the possibility of selling one's home, there is little a homeowner can do to change how much property taxes are owed. With sales taxes however, a citizen can take positive measures to reduce the amount of taxes paid -- by being frugal about purchases!

APPROACHES TO REDUCING AND ELIMINATING PROPERTY TAXES

1. I agree that relieving the pressure from oppressive property taxes on retired and low income citizens is critical. In addition, I would suggest that by their nature property taxes are the most oppressive of all taxes. As such I believe we should work toward eliminating property taxes on all citizens and replacing property taxes with less threatening forms of taxation.

2. When we speak of eliminating a certain type of tax, the immediate outcry is, "where do we get the public money necessary to take the place of property taxes"? The obvious answers are of course --

1. Shift the tax burden to sales tax (state or municipal)
2. Shift the tax burden to income tax (state or municipal)
3. In certain very notable ways "Big Government Creates a Need for Itself". Restructure laws and the intent of government so as to reduce the need for taxes.

3. Elimination of all residential property taxes would place from $50 to $200 per month in the pockets of most home owners and renters. That same amount of money can be targeted by sales and or income taxes. Careful and frugal retired and low income citizens can then proactively reduce tax burden through budgeting.

4. It seems unlikely that we can in one shot eliminate all property taxes. A much easier approach would be little by little eliminate certain parts of property taxes and shift taxation to sales and income taxes. For example:

1. Eliminate that portion of property tax levied in behalf of schools and pay for schools through sales or income tax. (perhaps other parts of property taxes such as public libraries, zoo, etc., etc., might be more appropriate to shift in to other forms of taxation.
2. Perhaps we could exempt property taxes on a persons primary residence while still taxing rental property or commercial property. This would be a nice first step, but many low income people will still be hit hard by the higher rents which are required due to property taxes on the rentals in which they reside.