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Rodney Lockwood - Monday, December 07, 2009
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Current Rating: 3.0 (208 votes cast)
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I propose the current system of real property taxation be modified. Currently it is based on the value of land plus improvements which the owner either make or purchased when buying the property. This creates additional tax revenue for municipalities based on owners making improvements. For example, if I put an addition on my house, I pay more taxes which is a discentive for doing so.
How about having property taxes be based on the value of the "land only", not on the land + improvements? The assumption here is municipal good government, in the form of police, fire, schools, zoning, etc. creates more valuable land, while the value of the improvements is created by the owner building same.
This provides the proper incentives to all involved parties and makes local government more accountable.
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