Sunday, October 18, 2009

Oh yeah, that's a lot better....

The state legislators property tax solution may be starting to take affect. You may recall the push for a Constitutional amendment to cap property taxes at 1% of the assessed value for residential properties, 2% for agricultural properties, and 3% for business properties.

A lot of Democrats worried that it would limit the government's ability to collect enough money to fund everything they wanted to fund. A lot of Republicans claimed it was the only way to protect property owners. A lot of people, (Libertarians mostly, I think) worried that if the caps took effect, and even if the sales tax was raised 16%, the assessed value could change enough to negate any savings the property owners might temporarily receive.

Sure enough, the New Castle Courier-Times is reporting on the plight of business owners that have seen their taxes double, triple, or worse under the new plan. A Kentucky Fried Chicken restaurant located on State Road 3 has seen it's taxes increase from $5751.26 in 2005 to $31,453.61 this year. Another restaurant closed when it's taxes went from $3000.00 to nearly $17,000.00.

Of course, the new plan hasn't been fully implemented as of yet. But before the public votes to put the plan in the state Constitution, homeowners might want to take a look at what is happening to business owners and farmers, and remember that the same thing could happen to them.

Libertarians know that property taxes can be eliminated like this. Or this. Or this. They can be replaced sales taxes and user fees, kept in check by limiting government spending to legitimate government functions.

Last year would have been a good time to start.

So will next year.

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1 Comments:

Blogger Endiana.com said...

Rex,

I recall being called a kook for opposing property taxation back in 2004.

In time, the Republicans realized they needed to do SOMETHING about it. (Keep in mind their goal is not to lower taxes, it's to get re-elected). And so they did.

Rather than rob Peter to pay Paul, they decided to rob Paul to pay Peter.

1:28 AM  

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