UNITED STATES – February 2019
Contents
USA - THE PROBLEM WITH PROPERTY TAXES.........................................................................................................3 USA - LESSONS FROM AMAZON'S DECISION TO CANCEL NEW YORK CITY HEADQUARTERS...................................4 USA - SANDERS’ ESTATE TAX PLAN WON’T LIKELY RAISE THE REVENUE INTENDED ...............................................6 USA - HOW BIG-BOX STORES BILK LOCAL GOVERNMENTS.....................................................................................6 USA - THESE MAJOR U.S. CITIES ARE SEEING PROPERTY TAX INCREASES THIS YEAR ..............................................8 USA - THUNE LEADS COLLEAGUES IN REINTRODUCING A PERMANENT REPEAL TO THE ESTATE TAX.....................9 USA - SANDERS PROPOSES ESTATE TAX OF UP TO 77 PERCENT FOR BILLIONAIRES................................................9 USA - THE SELF-STORAGE PROPERTY-TAX CONUNDRUM: ALTERNATIVES TO BETTER OUR COMMUNITIES ........ 10
PROP 13 SPLIT-ROLL TAX INCREASE WOULD HURT BUSINESS, AND AFFORDABLE HOUSING EFFORTS................. 12 CALIFORNIA BUSINESSES SHOULD REJECT EFFORTS LEVERAGING THREAT OF SPLIT ROLL FOR OTHER TAX HIKES13 CHANGING PROP. 13 COULD WORSEN CALIFORNIA’S HOUSING CRISIS. HERE’S HOW......................................... 14
PROPERTY TAX CHANGES COMING...................................................................................................................... 15
REAL ESTATE TAX 2019: NEW ASSESSOR, NEW POLICIES ..................................................................................... 16 ILLINOIS STATE AND LOCAL GOVERNMENTS SPEND MOST IN NATION ON PENSIONS ......................................... 17 NEW COMMISSIONER WORKS WITH COUNTY ASSESSOR TO MAKE WEBSITE EASIER TO USE.............................. 18 PROPERTY TAX RATES NEARLY DOUBLE SINCE 2007 AS RESIDENTS LEAVE HARVEY, ILLINOIS.............................. 19 IT'S TIME TO MODERNIZE THE ASSESSOR'S OFFICE.............................................................................................. 20 OTTAWA CONSIDERING EXTENDING DOWNTOWN TIF ........................................................................................ 21 WHY ARE FOLKS LEAVING CHICAGO? UNFAIR TAXES........................................................................................... 22
TAX COURT UPHOLDS 26 PERCENT INCREASE IN HOME VALUATION................................................................... 23
COUNTIES FIGHT BIG BOX STORES ON PROPERTY TAX APPEALS.......................................................................... 24
International Property Tax Institute
IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.
P a g e | 2
OUTGROWING THE EFFECTS OF PROPERTY TAX REFORM.................................................................................... 25
REAL ESTATE TAX REALITY ................................................................................................................................... 27 BOSTON CITY COUNCIL WANTS FAIR SHARE FROM PILOT ORGANIZATIONS........................................................ 28
MICHIGAN SUPREME COURT AGREES TO HEAR PROPERTY TAX CASE.................................................................. 29 MTA SHARES ASSESSMENT AND PROPERTY TAX BASICS...................................................................................... 30
NEBRASKA PROPERTY TAX FIGHT ........................................................................................................................ 32 PROPERTY TAXES REMAIN A PERENNIAL PROBLEM............................................................................................. 33
OVER $200K SPENT ON TAX APPEALS FOLLOWING CITY REVALUATION............................................................... 35 YOUR VACATION TO THE JERSEY SHORE IS ABOUT TO GET MORE EXPENSIVE. BLAME IT ON TAXES.................... 35 SOME JAW DROPPING NEW JERSEY PROPERTY TAX NUMBERS ........................................................................... 38
PIED-À-TERRE TAX GAINS CITY COUNCIL SUPPORT WITH NEW RESOLUTION....................................................... 38 CHALLENGING YOUR NYC PROPERTY VALUE ASSESSMENT MAY BE EASIER THAN EVER ...................................... 39 THE $238 MILLION PENTHOUSE PROVOKES A FIERCE RESPONSE: TAX IT ............................................................. 40 NYC PROPERTY TAX OVERHAUL PITS NEIGHBOR AGAINST NEIGHBOR................................................................. 42 LEVELING THE PLAYING FIELD ON PROPERTY TAXES WON’T BE PAINLESS ........................................................... 45
HOW’S THE MECKLENBURG PROPERTY REVALUATION GOING? HERE’S AN EARLY CLUE ..................................... 46
AUDITOR CRITICS ASK STATE TO ORDER NEW PROPERTY REVALUATION ............................................................ 46 END EXTRAVAGANT TAX BREAKS FOR THE WEALTHY .......................................................................................... 48 CRITICS FEAR SYSTEMIC MISTAKES IN LUCAS COUNTY AUDITOR'S HOME VALUES .............................................. 49
ELECTROLUX UNDERPAID TAXES BECAUSE OF LAND ASSESSMENT UNDERVALUED BY $100 MILLION................. 52
TEXAS...........................................................................................................................................................................53
THE PROS AND CONS OF PROPERTY TAX REFORM IN TEXAS................................................................................ 53 ANALYSIS: HERE’S YOUR PROPERTY TAX CUT, MAYBE. HEADS UP — IT’S EXPENSIVE .......................................... 54
International Property Tax Institute
IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.
P a g e | 3
ANALYSIS: SOMETHING’S MISSING FROM THE OPENING BID FOR PROPERTY TAX “RELIEF” IN TEXAS ................. 55 ‘BRING THE POWER OF THE DIGITAL AGE TO THE PROPERTY TAX PROCESS,’ SAYS BAKER INSTITUTE EXPERT..... 56 TEXAS PROPERTY APPRAISAL SYSTEM NEEDS A MAJOR REVAMP........................................................................ 57 SENATE COMMITTEE STARTS WORK ON REFORMING PROPERTY TAX ................................................................. 58 WHY TEXAS PROPERTY TAXES ARE EXPECTED TO SKYROCKET AGAIN THIS YEAR................................................. 59 TEXAS LEADERS' PROMISE OF 'PROPERTY TAX RELIEF' IS A FAR CRY FROM A PROPERTY TAX CUT ...................... 60
WALMART SEEKING ROLLBACK ON WARRENTON STORE TAXES.......................................................................... 61
WISCONSIN..................................................................................................................................................................63
BATTLE OVER WISCONSIN'S 'DARK STORE LOOPHOLE' TOUCHES NEW RICHMOND, HUDSON............................. 63 WISCONSIN MOST RELIANT ON PROPERTY TAXES IN MIDWEST .......................................................................... 64 5 ‘DARK STORE’ MYTHS DEBUNKED..................................................................................................................... 64 WISCONSIN GOVERNOR PROMISES TO CLOSE ‘DARK STORE’ TAX LOOPHOLE ..................................................... 66
________________________________________________________________________________________________________
USA - The Problem with Property Taxes
What is wrong with a property tax? As we continue to explore the reasons behind our efforts to eliminate property taxes, the concerns with a property tax as a means of taxation must be examined.
For those who are just getting involved, this article is the second in a series explaining the basis behind our property tax elimination bill.
The right to personal property sets the United States apart from other nations. Outside the United States, the rights to property have long been subject to the realm of kings and queens – a feudal society of sorts.
There is a tremendous anger surfacing due to the relentless loss of property and our government’s explosive spending
binge. Ravenous government spending mortgages ourselves, our children, and our property to an unrelenting assault by a government which is out of control.
The major negatives with property taxes relates to these very issues:
Property taxes are fixed expense with no regard to the person’s ability to pay. One’s property serves as collateral for potential unlimited government spending.
Taxes on property value reduce the incentive to maintain property The regressive nature of the property tax makes home ownership that much more elusive for much of the population.
International Property Tax Institute
IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.
P a g e | 4
Taxes on property have been debated incessantly for decades. What started out as an “innocent” means of raising taxes has
blossomed into a perceived unlimited source of funds by which government can make promises of future benefits to a select few to the detriment of the remainder of us. Property owners have the choice of either paying the taxes dictated for them by politicians or risk losing their property through foreclosure and tax sale.
Contrary to popular belief, the property tax system started in the United States dates at the time of the founding of our nation. At that time however, it is important to remember the historical context in that only the gifted few owned property. Only property owners at the time of the founding of our nation were permitted to vote.
The evolution of our republic has allowed the opportunity for owning property and of voting rights to expand to most of the population. As such, the antiquated notion of the property tax may negatively impact the very people who are now just beginning to enjoy the American dream evolving in the great experiment of the United States.
The negative impact of a property tax system is that your property serves as collateral for government promises. Ever increasing property taxes have allowed municipal governments and schools to make promises that they could not possibly keep if they did not have such a reservoir of potential funds at their disposal.
These “promises” have precipitated a record number of bankruptcy filings of municipalities since 2010. The settlement of these
bankruptcies will most certainly raise the level of debate of property taxes to unparalleled heights. The outcome of this battle will most decidedly determine whether or not American citizens have the right to own property.
With the rapid rise in property taxes needed by most jurisdictions to cover their promises and with lower pay and higher unemployment of taxpayers throughout the nation, the property tax is now forcing millions of Americans to reassess where they live, how they live, and if they can ever retire let alone own their home.
The U. S. Constitution addresses and protects property rights in so many ways: Source: “The Constitution and Property Rights” “The Founders were worried that Congress might use the tax system to loot property owners in some states for the advantage
of other states. Accordingly, they required that direct taxes (mostly importantly property and income taxes) be apportioned among the states (Article I, Section 2, Clause 3 and Article I, Section 9, Clause 4).
They granted the federal courts jurisdiction over interstate land claims and interstate debts to limit the extent to which state courts could discriminate against the property rights of out-of-staters (III-2-1 and III-2-2).
They added the Full Faith and Credit Clause (IV-1) partly to require state courts to honor property records in other states. The Founders gave Congress an unlimited power to dispose of public land (IV-3-2), but only limited power to acquire or hold land (I-8-17 and certain incidental powers). This was because they wanted most publicly-owned land to be transferred to the private sector.
They also inserted a number of other checks and balances, designed partly to protect minorities from unfair property
confiscations.”
Today, threats to property, particularly your home, are at epic levels and the battle will shape the landscape of our nation forever.
The American dream of home ownership and the liberty inherent in property are at risk. Ending property taxes will begin to restore the American dream to those most negatively affected by such an antiquated system as a property tax.
USA - Lessons From Amazon's Decision To Cancel New York City Headquarters
giving tax breaks to specific companies is a bad idea.
International Property Tax Institute
IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.
P a g e | 5
local politics and policy can also significantly influence whether a business succeeds
Amazon recently abandoned plans to build half of its “HQ2” in New York City. The company was going to receive about $3
billion in taxpayer subsidies for its New York office, and it appears that a small-but-vocal group critical of the subsidies had something to do with its change of plans.
This whole ordeal was a mess, but hopefully it’s taught companies and governments some valuable lessons. First, giving tax breaks to specific companies is a bad idea. There’s substantial evidence that such tax breaks are largely a waste of money. They typically don’t have much influence on a company’s final decision and the promised benefits—more jobs, more economic growth—either don’t materialize or would have occurred regardless. Playing the tax-subsidy game is like betting against the house—everyone thinks they’ll win but in the end they’re left with empty pockets and little to show for it.
Second, companies need to think differently about where they locate. From an economic standpoint, New York City is attractive
