I have always had a big problem with property taxes for the very situation you describe. You buy a house. You live in it. You pay property taxes. Then, because of market influences, or inflation, suddenly, it is worth three times as much. The local tax assessors now hand you a property tax bill three times higher than what it was 15 years ago. What did you do wrong? I mean, sure, theoretically you are wealthier, but you still need a place to live. Maybe you don’t want to move. Even if you did, the next place would be more costly to buy. Why should the local government reap a tax windfall simply because the market value increased? What if you are an older person on a fixed income? Taxing wealth is a very destructive policy, in my opinion.
“Then, because of market influences, or inflation, suddenly, it is worth three times as much. The local tax assessors now hand you a property tax bill three times higher than what it was 15 years ago. What did you do wrong?”
Oddly enough here in Californiaof all places that’s one problem we don’t have thanks to Howard Jarvis’ Prop 13 passed many years ago. Your property taxes are based on your purchase price not the current assessed value, though there’s a small adjustment in the value each year.
Also the tax rate was orinally set at one percent, now it has gotten a bit higher, but still relatively low.
THAT SCENARIO is exactly what led to Prop 13 in Calif in 1978.
I agree with your overall conclusions, but theoretically if an entire communities property value increases, then each person's share of the total remains the same. The problem of increasing property taxes doesn't come from the increase in value of the property, but the increase in spending by the government, and therefore an increase in the amount of money to be raised from the property taxation.
The people with the highest property taxes are all in very liberal Democrat states. Democrats hate their voters.