Opponents of Property Tax Caps: Unraveling the Oversights and Implications
Image Credit: Property Tax by Nick Youngson CC BY-SA 3.0 Pix4free.org
By Rob Mitchell [Rutherford County Assessor of Property] –
Proponents of property tax caps argue that they are a necessary measure to control local government spending and reduce the burden on taxpayers. However, opponents of property tax caps argue that they are ineffective and can have harmful consequences.
One of the main oversights of property tax caps is that they fail to address the underlying causes of rising property taxes. The costs of providing essential local services, such as education, healthcare, and public safety, are increasing at a faster rate than inflation. This is due to a number of factors, including the rising cost of employee benefits, fuel, and other materials.
Property tax caps also do not take into account the fact that local governments must grapple with uncontrollable cost increments, such as mandates from the state and federal governments. When local governments are unable to raise enough revenue through property taxes to cover these costs, they are forced to cut services or raise other taxes.
Another oversight of property tax caps is that they can exacerbate the regressive nature of the local revenue system. This is because property taxes are typically paid by homeowners, who are often low- and middle-income families. Property tax caps can lead to cuts in essential services that benefit these families, such as education and public safety.
In addition, property tax caps can have a number of unintended consequences. For example, they can lead to a decline in the quality of public services, as local governments are forced to cut costs. They can also discourage businesses from investing in a community, as they may perceive the local government to be unstable.
Finally, property tax caps are often ineffective in controlling local government spending. Studies have shown that local governments often find ways to circumvent property tax caps, such as increasing fees or borrowing money.
Observation: People are locating to Tennessee from states which have enacted property tax caps because the caps failed to address the underlying issues.
This observation is supported by data from the United States Census Bureau. In recent years, Tennessee has been one of the fastest-growing states in the country. This growth is partly due to people moving from states with high property taxes, such as California and New Jersey.
Many people who move to Tennessee are attracted by the state’s relatively low property taxes. However, some have expressed concerns that property tax caps in other states have led to cuts in essential services.
Conclusion:
Property tax caps are a simplistic solution to a complex problem. They fail to address the underlying causes of rising property taxes and can have harmful consequences for local governments and residents.
Policymakers should consider more comprehensive solutions to the problem of rising property taxes, such as abating property taxes for senior citizens and providing more financial assistance to local governments. Targeting relief to those most in need both slows the growth of state government while holding harmless local government. In Tennessee only local governments receive funding from property taxes. Removing from local government the ability to raise necessary funding is both short sighted and ill conceived.
9 Responses
Wrong, people are not relocating to Tennessee to avoid property tax caps. They are moving here to get away from too many taxes, too many illegals and “refugees”, too many corrupt politicians and crappy school systems. My parents bought a house in California in 1955. Their property taxes were capped with prop 13 which allowed them to stay in their home until they passed. Only people who moved several times had to pay more property taxes on homes that were probably over priced. I do agree that Tennessee should stop following the California road which WILL lead to the destruction of the Tennessee way of life. People who want to live the California lifestyle, move to California.
People are not moving to Tennessee for lower property taxes. They are moving here for freedom from government tyranny, which includes government raising taxes of any kind in order to pay for graft and unnecessary spending. I know of one such grant that teaches children how to ride a bike. Isn’t this a parent’s job? If we were flush with cash, maybe this would be nice, but funding such a grant with property tax increases is ridiculous! If the government would stop spending money for such trivial things and start using our taxes for mandatory expenditures, maybe we would find that we don’t need to raise property taxes. Most politicians these days think nothing of receiving bribes from business owners so that they will reward these businesses with either grant money or a government contract. The politicians then award these businesses with lucrative contracts or grants at the taxpayer’s expense.
The politicians don’t care, it’s not their money. After all, this has been going on for decades! Well, that doesn’t mean it’s right. It’s time we elect politicians that work “for the people” instead of “for their own financial reward”. Term limits are also necessary, since that is all of this graft and malfeasance continues year after year.
The Howard Jarvis Taxpayer Association said it best:
https://www.hjta.org/news-events/taxing-times-online-spring-2023/presidents-message/
Exactly the point. When you cap one source of revenue for government they will look to ways to create another. It will be through another tax or through a user or impact fee. In California, when someone wants to downsize their home the dilemma is this : If they sell their house which has an artificially low property tax and look to buy something smaller; the new homes taxes will be at the price they bought the home for and the property taxes in many cases are 200% to 300% higher than the house they just sold. So they look for a place like Tennessee to relocate where they will not have to be burdened with high property taxes. Our taxes are4 actually low compared to most other states. The best way to limit taxes is to elect people who can learn to say “no” to unnecessary spending.
This organization has caused greater damage to California’s overall economy than anyone realizes.
People should start asking themselves – why is Bill Lee turning Tennessee into Socialist Kalifornia ?
Crime is going up across Tennessee just like Kalifornia. Red Flag Laws are a Kalifornia/Los Angeles bred ideology as is the hate toward Christians and Catholics.
Newsom’s auntie, Nancy Pelosi bragged that Kalifornia would rule the country.
Socialist Kalifornia Policies are no good for any State.
One Ideology out of LA was – by protecting the rights of criminals, we are protecting the rights of law-abiding citizens. Try to make sense of that.
I am a conservative CA refugee. I worked in support of proposition 13 in the 70’s.
Question: if proposition 13 were such a “great deal for the government”, why has the CA government, year after year after year, lied, cheated, threatened “we’ll be forced to cut the number of teachers, cops & fire” (which they never did) and misrepresented every fact to get rid of proposition 13?? Why? The gov’t wanted more tax $$$ that’s why.
Additionally, they were angry, when assessed evaluations decreased, because under prop 13, the taxes also decrease & if overcharge had occurred, refunds were issued.
Currently TN has a somewhat conservative government. That’s why, constraints must now be placed on government, because no knows the future.
Proof? CA voted for Reagan twice as governor..
So TN, now is the time.
Tennessee must seriously consider and enact a law worded exactly like proposition 13. Protect your future. (They are coming to take it away..)
I am a conservative CA refugee. I worked in support of proposition 13 in the 70’s.
Question: if proposition 13 were such a “great deal for the government”, why has the CA government, year after year after year, lied, cheated, threatened “we’ll be forced to cut the number of teachers, cops & fire” (which they never did) and misrepresented every fact to get rid of proposition 13?? Why? The gov’t wanted more tax $$$ that’s why.
Additionally, they were angry, when assessed evaluations decreased, because under prop 13, the taxes also decrease & if overcharge had occurred, refunds were issued.
Currently TN has a somewhat conservative government. That’s why, constraints must now be placed on government, because no knows the future.
Proof? CA voted for Reagan twice as governor..
So TN, now is the time.
Tennessee must seriously consider and enact a law worded exactly like proposition 13. Protect your future. (They are coming to take it away..)
Tony,
Prop13 didn’t slow tax growth in CA did it? You said it so well! The Jarvis center and Art Laffer have a vested interest in spreading the propaganda of Prop.13. Maybe it should be called “propaganda 13”?
Maybe the mane was telling us something all along?