Citizens around the nation are utterly fed up with this legalized extortion and have begun to take action, the Monitor reports:
This year, legislative proposals, citizen initiatives, and lawsuits are on the agenda in at least 20 states. These new efforts reflect both residents' distrust of how their property tax dollars are being spent and concerns that rising assessments are driving working-class people out of popular towns and cities. . . .
"The intensity of outrage has not been this high since Prop. 13's heyday," says Pete Sepp, spokesman for the director of the National Taxpayers Union in Alexandria, Va. . . .
Revolt is in full swing in Incline Village, Nev., on the shores of Lake Tahoe.
There, Maryanne Ingemanson's tax bill is now $80,000 a year for a 5,000-square-foot house. She and a group of residents raised $400,000 to fund a lawsuit claiming recent assessments are unfair. Last week, 17 residents won a battle against the tax assessor when an elected county board threw out the new assessments.
Of course, many believe homeowners should be glad that their homes are worth more, says Ms. Ingemanson. But many people - especially the working class and those on fixed incomes - can't always afford the new taxes and have to leave. "This runaway taxes situation is driving people from their homes," she adds.
South Carolina last week passed a law that caps the increase in property assessments at 3 percent per year.
Many Georgia lawmakers are backing a measure to put a similar cap in the state constitution. The bill's sponsor, first-term state Rep. Edward Lindsey (R) from Atlanta, argues that it's unfair to hit homeowners with a big tax boost years before they sell their home and profit from its increased value.
"Not even the IRS is so bold as to tax people on unrealized gain," says Mr. Lindsey. "These are essentially backdoor tax increases that give government no incentive to be efficient or responsive."
I deliberately retained the mention of Lake Tahoe here, because I think it's important in that it is a relatively hard case with which to sympathize. It's easy to suggest that people living in very expensive homes in beautiful places such as Tahoe should be taxed higher than others, but I think that even the most wretchedly coldhearted socialist must see that charging a person $80,000 a year just so that they can keep their home is an outrageous act of greed and malevolence.
The value of these homes is indeed very great on paper, but the people living in these places are not actually benefitting from any increased value from their homes if they do not sell them (except for their ability to take out home equity loans, which is not a special advantage)—at which point they are no longer subject to paying the property tax! And of course, the burden is even harder on people of lesser incomes, as the Monitor story points out. This property tax revolution is a welcome development indeed, and I wish its purveyors godspeed.