Property taxes are one of the
most irksome forms of taxation. There
are many drawbacks to them.
Property assessments can be,
and often are, arbitrary, subjective processes, dictated by the whims of
assessors. The Louisiana law regarding
assessments pretty much says it all:
‘Fair market value is
defined by LA Revised Statute § 47: 2321 as follows:
‘Fair Market Value is the
price for a property which would be agreed upon between a willing and informed
buyer and a willing and informed seller under the usual and ordinary
circumstances; it shall be the highest price estimated in terms of money which
property will bring if exposed for sale on the open market with reasonable time
allowed to find a purchaser who is buying with knowledge of all the uses and
purposes to which the property is best adapted and for which it can be legally
used’ (‘How does the assessor determine my home’s Fair Market Value for
assessment purposes?,’ stcharlesassessor.com).
This is more akin to the
pagan practice of divination by examining dead animal guts than it is a just
and rational way to calculate someone’s tax bill.
Furthermore, if a citizen
disagrees with said tax bill that the parish assessor lays upon him, the
assessor is assumed to be in the right; all of the burden is on the citizen to prove
otherwise and to navigate the bureaucratic labyrinth that has been set up to
arbitrate disputes:
‘As a taxpayer, you have a
certain legal responsibility to furnish accurate information on your property.
Our office welcomes all information provided by the property owner. If you have
complied with these legal requirements, you are entitled to question the value
placed on your property. If your opinion of the value of your property differs
from the Assessor's, you may come to our office to discuss the matter in
person. Be prepared to show evidence that the Assessor's valuation of the
property is incorrect. Our staff will be glad to answer your questions about
the Assessor's appraisal. If, after discussing the matter with the Assessor, a
difference of opinion still exists, you may appeal your assessment to the
Ouachita Parish Board of Review according to procedures and published
deadlines. After reviewing your appeal, if the Board agrees with the Assessor
and a difference of opinion still exists, you may appeal the Board's decision
to the Louisiana State Tax Commission. If the Commission agrees with the Board
and the Assessor, you can plead your case before the courts should you choose
to do so’ (‘Help / FAQ,’ opassessor.com).
How would a car mechanic or a
school teacher ever find the time and/or money to make it through that appeal
process?
And the coup de grâce: If one fails to pay his property taxes (for
whatever reason), his property is taken from him by the government.
With all that said, we also
recognize that property taxes have been around for centuries and that they are
very helpful for local governments in raising funds for critical services
(education, emergency response, etc.).
In the spirit of improving the system rather than burning the whole
thing down, let’s see if we can find some ways to reform it, to make it more
bearable for the property owners who are carrying so much of the tax load for
local government.
First and most importantly,
votes on property taxes must limited to property owners. This is akin to the closed political
primaries that have recently been re-enacted in Louisiana: Just as Democrats can’t vote in Republican
primaries and vice versa, so also those who don’t pay property taxes shouldn’t
have a say when determining property tax levies; allowing them to do so is an
act of injustice.
Second, property tax
increases could be capped. California
voters famously did this in 1978 with Prop 13, though this seems
to create
new problems of its own. Circuit
breakers, which lower property taxes if they exceed a certain percentage of
an owner’s income, are another option.
Third, a sovereign wealth
fund (SWF) could be established by the State of Louisiana that would reimburse
Louisiana property owners at least a portion of the amount they paid in
property taxes. Norway has perhaps the
most famous SWF, and President Trump has proposed establishing one at the
federal level in the US, but one of our sister States, Alaska, also has a very
robust fund, upon which Louisiana could model her own. (Technically, Louisiana already has an
investment fund like this, the Louisiana
Education Quality Trust Fund, but its focus is limited. Nevertheless, the experience in operating it
should help in establishing a broader SWF.)
At the foundation of Alaska’s
SWF is her mineral deposits, mainly hydrocarbons:
. . .
The rest is at https://thehayride.com/2025/04/garlington-ease-las-property-tax-burden-with-a-sovereign-wealth-fund/.
--
Holy
Ælfred the Great, King of England, South Patron, pray for us sinners at the Souð, unworthy though we are!
Anathema
to the Union!
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