Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Why are we forced to pay taxes on a home when we own it free and clear? We don't continue to pay taxes on cars, RVs, clothes, food, etc... Just curious is all.
If you didn't pay taxes on your home the government would just end up taxing something else to make up the difference. Government services cost money and taxes are the way that government is funded, no free lunch.
The other way to look at it is that instead of demanding a lump-sum tax at the point of purchase like sales tax (which would be astronomical on a house), the government spreads out your tax burden over the duration of ownership. And the tax burden doesn't have anything to do with whether the home is paid off -- even someone who pays cash owes taxes. It has to do with home value.
Also, this is worth noting: property taxes allow the government to have a stake in property values. If they invest in services people want like schools, parks and safer streets, then home values will rise and they prosper from that. They have built in incentives to better the community. And like others have mentioned, these services won't pay for themselves.
If you're anti tax, don't move to Kansas City, MO. We've got property taxes, personal property taxes, state income tax, sales tax (up to nearly 11% in some areas) and a city earnings tax of 1% if you live or work within the city limits. Fortunately, Missouri does have relatively low gas taxes, but the roads show it, too.
Southern Washington is the place to be. No state/city income tax. Low property tax rates. Which they make up for with a high sales tax rate...which you can avoid by shopping across the river in Oregon with no sales tax.
And drive away all business across the state. Unless they know what they are doing doesn't sound too smart.
Why are we forced to pay taxes on a home when we own it free and clear? We don't continue to pay taxes on cars, RVs, clothes, food, etc... Just curious is all.
Next time you get your property tax bill, look at the breakdown on where the money goes. It will make more sense as to why you still have taxes on a home that you own free and clear. Your mortgage and tax has nothing to do with one another.
It doesn't really matter how they tax you or what they call it, it's going to happen in some form. my guess is property taxes is a sure way to make sure the Govt gets their cut from the folks who don't work and pay income tax
People that don't work and don't pay income taxes probably are not homeowners.
How do you propose cities, towns, counties pay for police, roads, fire protection, schools, libraries, snow removal, etc., etc.? Those things are not free.
Why are we forced to pay taxes on a home when we own it free and clear? We don't continue to pay taxes on cars, RVs, clothes, food, etc... Just curious is all.
Are people still going to school in your area? Are you continuing to use the water that the city provides and purifies? Are you continuing to use area rec centers or vote at polling places? Are you still allowed to call the police for an emergency, or call a city department?
If you do any of those things, or other things....you must pay for them. Even if you don't use a specific thing, other residents do, and those things cost.
Property taxes aren't sales taxes.
BTW....I still pay taxes on my car, even tho it's paid off. It's called registration.
I don't have to pay a property tax on clothing and food, because no one else uses it but me, and it doesn't require the city or county or state to maintain it on a continual basis.
Different states handle the fees to residents differently. Some have low property taxes, but have a state income tax and high sales taxes to make up for it. Some have low sales tax rates and no state income tax but have high property taxes. If you didn't have a property tax, you'd have high sales tax and a state income tax high enough to pay for the state, city, and county services.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
