[econjack]

Generally, there are two theories for taxes: 1) ability to pay (e.g., federal income taxes) and 2) benefits received (e.g., gasoline tax). Property taxes don't fit into either one...it's a crappy tax based on wealth, not income. It impacts retired people heavily who often have reduced incomes (violates principle #1) and don't have kids in schools (violates principle #2) which is where a huge chunk of property taxes go.

Solution? I really don't see property taxes going away any time soon. However, I would like to see credits issued for property taxes paid that could be sold in the open market. For example, if I paid $2000 in property taxes, I'd have a piece of paper I could sell to someone who has kids in school which they could use to pay their kids “tuition” for public schooling. Further, the credit could be used for private schools, too. This would force public schools to get their act together or fade away.

[Eska]

Over much of rural Alaska, no property taxes; and it's the one concept everybody here wants to preserve, no changes. It also forces communities to live on the what the state gives them from the oil profits.

Sure the urban areas such as Anchorage have property taxes and spend 1/3 to 1/2 more on education spending/student; but you don't see positive results in the test scores.

The state politicals go crazy thinking about us rural Alaskans not having property taxes; forever talking about head tax and other taxes that would capture the bucks slipping through their greedy hands.