Property tax unfairness / by kevin murray

While there are probably few people that are actually happy to pay taxes, in point of fact, most people will admit that the payment of taxes are a necessary and a needed function for those that are part and parcel of their communities; in order to demonstrate in principle that they are good contributors to their community, if by nothing else, at least by their tax paying contribution. This thus signifies that what is really most meaningful for taxpayers is that the system as constructed is both uniform and fair.  When it comes to property taxes this is surely not the case, and in fact, hasn't been the case, and probably won't be the case anytime soon.

 

For instance, certain properties are exempt from property taxes, such as universities, churches, governmental facilities, public school facilities, non-profit hospitals, and many general non-profits, as well as various exemptions are typically made available for senior citizens, veterans, and even corporate businesses that have negotiated a special deal with the appropriate governance of a particular city, county, or local authority.  So that, as reported by lohud.com, it is estimated that "The state of New York is home to 5.7 million parcels of property worth an estimated $2.8 trillion But when property-tax bills go out each year, nearly a third of that value — about $866 billion — never gets billed."  Obviously, those properties that are thereby totally exempt, or have their taxes reduced for whatever reason, necessitates that those that are not exempt, must therefore carry significantly more of the tax load, in order to provide necessary monies for the infrastructure of their government to successfully perform and to provide their community services.

 

When it comes to those property taxes, the payment of such has nothing to do with discretionary spending, such as what a sales tax so represents, for goods so purchased; but reflects instead the ownership of real estate property that one either conducts their business from, and/or resides within, and since everyone needs a place of residence, and those of working age, typically require a separate place where they work, the taxes so assessed are relevant.  Because, whether or not, a given person owns the business, or owns their dwelling, property taxes will be paid either directly, because of that ownership, or indirectly -- for instance, when they are just an employee or just a renter; but paid they are going to be, in one form or another, by, for example, higher rents to reflect those taxes, or lower wages or lower job opportunities, or some sort of combination, thereof.

 

One way for the common property taxpayer to begin to fight back against this unfairness, is for a public list of all exempt businesses, schools, churches, non-profits, and the like, thereby becoming available in an easily accessible public database, and further to the point, leading to some sort of pushback by the general taxpayer against the fact that total property tax exemptions, should really be few and infrequent, of which, the reasoning of those exemptions being provided in the first place, should be foundationally re-examined.  This is not to say that universities, for instance, don't provide a public benefit; but why should that benefit, include a total exemption of property taxes, as if every square inch of that university is all for the benefit of the public, when, in fact, only a small percentage of the residents of a community typically ever set foot even upon the campus.

 

The bottom line is that property taxes are not cheap, and for those that are compelled to pay, annually, they never actually go away.  So it would be fairer, if all the members of the community in whole did their fair share in their contribution to the payment of such, rather than their outright avoidance.