Top 10 reasons to like property taxes

September 23rd, 2009 at 08:35am Wally Haas

Yesterday, Boone County treasurer Curt Newport met with some members of the Editorial Board to explain the property tax process. Newport was concerned after a series of stories, editorials and columns that the Editorial Board had some misconceptions about property taxes. He did a good job of explaining the system and gave us this top 10 list:

1. Taxing and spending decisions are made by boards of locally elected officials, at public meetings where we can attend and express our opinion. We can all make a difference, if we participate in the process.

2. Property taxes stay local. The money is spent here in our community, providing local jobs. We can see how the funds are used.

3. The property tax burden is shared among all property owners, not just local residents. A significant portion comes from commercial and industrial property, easing the burden on homeowners.

4. Exemptions reduce the tax burden for homeowners, senior citizens and disabled people, and state aid is available for low-income seniors.

5. Property taxes are deductible from federal income tax, further reducing their net cost.

6. Farmland is assessed according to productivity rather than market value. This tends to reduce the tax burden on farmers in areas where development is driving up land prices.

7. Annual tax increases are limited by PTELL (Property Tax Extension Limitation Law, better known as tax caps) to the rate of inflation.

8. Property taxes are enforceable and collectible. Unlike income and sales taxes, the property tax system does not depend on taxpayer honesty. You never have to wonder if your neighbor is cheating the government or paying his fair share.

9. Property taxes are calculated by the county clerk and billed by the county treasurer. Property owners do not have to keep specific records, file complicated forms, hire accountants or purchase special software.

10. Property taxes provide a stable source of revenue for essential government services. Revenue can be budgeted with considerable accuracy. This prevents layoffs and service reductions during periods when other revenue sources decline.

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