Property taxes have a long history in the development of civilization all the way back to feudal systems where land owners “allowed,” tenants to farm for meager returns. Modern property taxes have become “government guarantees,” of revenue. They constantly increase, seldom decrease, give the government power to take your house if you don’t pay and that is why they are so popular. In fact, whether or not your wealth or income increase – your property taxes will.
Taxes should be paid fairly. Simply because you choose to put your money into a house should not mean that you pay a larger share of the local or county government. If it is to be fair, when you spend your money, it should be taxed because spending truly is the easiest way to determine wealth. Therefore, a sales tax would more fairly distribute the cost of government, Florida certainly thinks so. No matter who uses government provided facilities like parks, roads or libraries or put demands on services like police and fire departments, while in the community spending money, they would be supporting local government.
At the same time, local government should be allowed to assess a local sales tax to replace property taxes. Since the sales tax collection system already exists, it is a simple matter to adjust the rate for local communities and not have any serious cost to vendors or agents that collect it. Many states already have local sales taxes and this would not be difficult to impose. Regarding those who are in need, no one is better qualified to issue a tax exemption certificate to people who qualify. The local tax assessor already gives relief to property tax payers with low income. Simply provide them with a sales tax exemption card to use at local vendors and exempt them from the burden of local sales tax. I cannot believe the Florida Legislature has not offered a local sales tax option in any of their proposals – they should! Sales tax, tourism taxes like hotel taxes and entertainment taxes are the foundation of Florida’s revenue. If it is good enough for the State of Florida it is certainly good enough for local Florida government. We might even find a 1% sales tax would be enough to replace property taxes – is anyone checking what it would take?
Sales tax revenue would also reflect growth and retraction in the economy and not tax people based upon the sales price of other people’s property which is how it is done now. Currently your property taxes go up even though you are not selling but based on price increases, in your area, which you have no control over. Keep your house for twenty years, never sell it and your property taxes most likely will triple. Why? Did your income triple, did you get three times the use from your house or local services? Why should what you pay to support local government have anything to do with the tax assessor’s best guess of what your house is worth. Are you using more services based on the size of your house? I doubt it. Really – it is total guessing and your opportunity to challenge it is almost nil. It really is the worst tax ever. That is why it is revered by local government.
Florida could be the first state to actually allow home ownership. Right now, as long as property taxes exist, there is no home ownership. At least our forefathers who founded this country were granted real ownership, until the ugly property tax evolved. Florida has a chance to improve upon it’s already positive Homestead Exemption by expanding the property tax relief beyond the current amount and protect Florida residents even more by expanding the homestead exemption or limiting or eliminating property tax for residents.
Make no mistake, government loves the property tax, it continually grows, it is vested in their control as they set the rates and they own your property for which you pay rent in the form of property tax.
Take a look at your property tax bill next November and compare it to the last five or six years. Then ask yourself, did your income go up at the same rate? By the way, if you want to find out who owns your house, don’t pay your property taxes and I guarantee you within two years, the county will sell it to the highest bidder. Oh, you might get a few bucks back from the sale but they will sell it for the outstanding taxes therefore most likely you get nothing. The truth is your property should not be owned or controlled by any government. You bought it, paid for it and now you want to enjoy it before you pass it on to your heirs. Why should the government have any say in that?
Property values are completely arbitrary. Generally assessed based on what homes in your area are selling for. Why should where you live determine how much tax you pay even though you get the same government services – not more, not better – the same. Does not make sense that where you live determines what you pay for local services. Isn’t the theory – one person one vote everyone is equal? Not with property taxes.
Should we be lucky enough for the Florida Senate to wake up and send a bill back to the Florida House of Representatives to put property tax reduction or elimination on the ballot this year –VOTE FOR IT! For once in a life-time you might get the chance to actually have a say in the taxes the government levies on you. It would be a staggering benefit, for the people to be able to say to government, “enough already, we cannot take it anymore, you have abused your ability to control spending and we have had it.”
Ask yourself, why are local governments not adjusting IMPACT Fees to provide for new growth and get it from the developers and new residents causing the need for more services? Simple, they have property taxes and don’t want to offend new residents/voters!
Take your house back and remove it from the taxing base of government. You owe it to yourself. Call or write to your state representative and state senator’s office now to tell them to support property tax reduction/elimination in any form – now! Don’t believe the naysayers in local government, it’s your house let’s make sure it stays that way!
Robert Nyce is a resident of The Villages.