03-15-2008, 06:58 PM
So how did we get into this mess[?][?][?][?]
Many moons ago, when I went to real estate school, they hammered into our heads that Assessed Value and Market Value were two distinct, unrelated numbers (even if coincidently they were the same. Market Value was what a property was worth given willing and able buyer and seller. Assessed Value was a totally fictional number made up to arrive at a tax figure.
But, we, smart people that we are, couldn't keep them straight and historically would use the Assessed value when comparing one property with another. Probably because those numbers were publicly available. I know in pre-internet days, the towns I lived in published an annual report that contained these values. So now we see a shift to where the taxing officials bias their assessments by talking market value. I wish they would remain separate.
In my own humble opinion this whole property tax system sucks on several levels:
1st - why is property tax the way to finance local government? Can anyone convince me that a million dollar property occupied by the typical family of 4 uses more municipal services than a $200,000 house occupied by the typical family of 4? Does it really use 5 times the resources? I'd say for the most part, NEITHER property uses the services, but each family does. Not to be insensitive, but I'd guess a "homeless" family of 4 probably uses more county services than the million $ property family of 4.
2nd - How often does the tax base decrease because there are less taxable properties in the jurisdiction? Somehow, the change in the base should account for the increase in budget. The fact a property may have arbitrarily increased in value on paper doesn't mean it needed more services.
3rd - Wonder how much government expense could be saved if all property tax related positions/tasks were eliminated? Wouldn't be needed if county revenue was based on something non property related. Perhaps collected on a per capita basis of some tax we already pay into the system (income, sales/GET)?
Governments have already gotten around Prop 13 by use of special assessments/fees. Worse than property taxes as I understand most aren't tax deductible.
David
Ninole Resident
Many moons ago, when I went to real estate school, they hammered into our heads that Assessed Value and Market Value were two distinct, unrelated numbers (even if coincidently they were the same. Market Value was what a property was worth given willing and able buyer and seller. Assessed Value was a totally fictional number made up to arrive at a tax figure.
But, we, smart people that we are, couldn't keep them straight and historically would use the Assessed value when comparing one property with another. Probably because those numbers were publicly available. I know in pre-internet days, the towns I lived in published an annual report that contained these values. So now we see a shift to where the taxing officials bias their assessments by talking market value. I wish they would remain separate.
In my own humble opinion this whole property tax system sucks on several levels:
1st - why is property tax the way to finance local government? Can anyone convince me that a million dollar property occupied by the typical family of 4 uses more municipal services than a $200,000 house occupied by the typical family of 4? Does it really use 5 times the resources? I'd say for the most part, NEITHER property uses the services, but each family does. Not to be insensitive, but I'd guess a "homeless" family of 4 probably uses more county services than the million $ property family of 4.
2nd - How often does the tax base decrease because there are less taxable properties in the jurisdiction? Somehow, the change in the base should account for the increase in budget. The fact a property may have arbitrarily increased in value on paper doesn't mean it needed more services.
3rd - Wonder how much government expense could be saved if all property tax related positions/tasks were eliminated? Wouldn't be needed if county revenue was based on something non property related. Perhaps collected on a per capita basis of some tax we already pay into the system (income, sales/GET)?
Governments have already gotten around Prop 13 by use of special assessments/fees. Worse than property taxes as I understand most aren't tax deductible.
David
Ninole Resident
Ninole Resident