If you have to pay a regular fee to maintain control and use of a home or other parcel of property, do you really own it?
asserted
you → have → it
Or are you just renting it from whoever collects the money?
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whoever → rent → money
That's the question behind a growing movement against property taxes, which is winning support across the country and may see its next big test in the form of a proposed constitutional amendment on the Florida ballot that would significantly trim taxes on owner-occupied homes.
uncertain
that → grow → homes
You are reading The Rattler from J.D. Tuccille and Reason.
asserted
You → read → Tuccille
Advocates of reform understandably champion the inviolability of private property, which is threatened by continuously rising levies.
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which → champion → levies
Opponents predictably include people who fear reduced government revenues, but also those who worry that cutting property taxes will shift power to state governments at the cost of local autonomy.
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cutting → include → autonomy
"Property is the foundation of liberty," argues economist Vance Ginn.
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Ginn → argue → liberty
"It represents the right to the product of voluntary exchange, investment, and saving—not a privilege granted by government.
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It → represent → government
To tax property again every year after it has been bought with after-tax income is to deny genuine ownership.
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it → tax → ownership
Property taxes operate like an annual wealth tax or unrealized capital-gains tax, applied regardless of income or ability to pay.
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taxes → operate → income
"
Opposing Ginn's argument in the debate is the Tax Foundation's Jared Walczak, who is not so much a fan of property taxes as a believer that they suck less than the alternatives.
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they → oppose → alternatives
"Spending restraint can reduce property tax burdens," argues Walczak.
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Walczak → reduce → burdens
"But with property taxes accounting for 70 percent of local tax collections nationwide and upwards of 90 percent in some states, any discussion of property tax elimination must grapple with revenue alternatives."
asserted
discussion → account → alternatives
"It is axiomatic that whatever you tax, you get less of," he adds.
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he → tax → less
"Taxing income means less income-producing labor and investment, for instance.
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Taxing → tax → instance
But because land is an immobile asset, taxing property does less to distort market decisions than taxing income or even sales.
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taxing → tax → income
Walczak also points out that while property taxes are usually imposed by local governments, most alternatives to property taxes come at the state level.
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alternatives → point → level
That would move power further up the political food chain, away from the property owners worrying about their tax bills.
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That → move → bills
To this, Ginn responds that governments at all levels cost more than they should and that "the moral and fiscal failure of property taxes lies not only in how the money is raised, but also in how much government spends."
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government → respond → much
That means the debate over property taxes isn't just a struggle between those who want to trim the state's take and those who prefer larger government, but also between anti-tax activists and their frequent allies among advocates of local power.
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who → mean → power
In a piece this week on the groundswell against property taxes, Politico's Liam Dillon notes that "the uprising's most pitched battles are being fought in Red States where the issue has emerged as yet another dividing line on the right.
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issue → note → right
"
Localities Are Dependent on Taxing Property
The debate over property taxes is fierce partially because governments have come to rely so heavily on them.
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governments → tax → them
"In fiscal year 2023, property taxes comprised 28.9 percent of total state and local tax collections in the United States, more than any other source of tax revenue, despite being levied almost exclusively at the local (not state) level," Janelle Fritts wrote for the Tax Foundation.
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Fritts → comprise → Foundation
Property taxes in the U.S. range from roughly half a percent to just under 2 percent of assessed home value.
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taxes → range → value
States that rely most heavily on them, like New Hampshire (1.5 percent in 2024) and Texas (1.4 percent in 2024), also tend to leave a lot of government responsibility in local hands that might be exercised at the state level elsewhere.
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that → rely → level
It's worth noting that Cato's Freedom in the 50 States ranks New Hampshire as having the second least burdensome tax regime among states, with Texas in fourth place.
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Freedom → note → place
The lowest taxed states in property terms are Alabama (0.37 percent in 2024), Arizona (0.48 percent), Hawaii (0.29 percent), and Utah (0.48 percent).
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states → tax → 2024
Some states, such as Illinois (1.88 percent in 2024) and New Jersey (also 1.88 percent), tax the hell out of many things to support large and intrusive governments.
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states → tax → governments
Hawaii, despite low property taxes, is ranked as the most tax-burdened state by Cato.
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Hawaii → rank → Cato
As mentioned above, economists tend to like property taxes because they are efficient, minimally distort economic decisions, and empower localities relative to state and federal authorities.
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they → mention → authorities
But as Politico's Dillon emphasizes, "everyone who is not an economist seems to hate property taxes."
Homeowners Don't Like the Insecurity That Comes With Property Tax Bills
Property taxes rise with assessed property valuations that homeowners have no control over, as the market shifts with supply and demand.
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market → emphasize → supply
They require what feels an awful lot like an annual rent payment to keep a roof over people's heads many already paid for.
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many → require → heads
That reduces the sense of security that owners feel in their homes, since their habitation remains conditional on meeting local authorities' demands.
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habitation → reduce → demands
The bite of sales taxes can be reduced by buying less, and income taxes are dependent on earning paychecks, but property taxes (with some local exceptions) come due no matter what.
Soaring property valuations in recent years drove property tax bills higher for Americans who did nothing but remain at their established addresses, though localities can and sometimes do adjust tax rates to offset rising values.
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localities → reduce → values
USA Today reported that "between 2019 and 2023, the median value of annual property taxes increased nearly 25%."
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value → report → taxes
That has energized the movement to cut or abolish the taxes.
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That → energize → taxes
Efforts to reform property taxes have been effective in more than a dozen states, according to Governing.
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Efforts → reform → Governing
Most of these efforts involved reducing taxes, though eyes are currently on Florida where Amendment 3, a proposed change to the state constitution, would incrementally raise the homestead exemption to $250,000.
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Amendment → involve → 250,000
It also would require "the Legislature to prescribe a uniform procedure for counties and municipalities, for their respective levies, to increase the homestead exemption up to full assessed value," effectively abolishing property taxes on owner-occupied dwellings.
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counties → require → dwellings
As a constitutional amendment, the measure requires 60 percent of votes to pass.
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measure → require → votes
…and 6 more, not listed.
The Aporia
