I think if North Dakota eliminates the property tax they will be shocked at how many useless people their state can (and will have to) sustain, and how many generations people can go without ever working a job.
Here in NJ many people have opted for the renters/hired hands option in part BECAUSE OF the property taxes. In the past, the taxes could be dealt with because we had better-paying jobs, and you would deduct them on your federal income tax return (and often get a rebate from the state as well). Now many of our good jobs have left; as a result, marriage/childbearing is dropping off (so less people need the space of a separate home), and people want to have the option to follow the jobs (”Grapes of Wrath” style). The income is not there to either pay the taxes or really benefit from the federal income tax deduction anyway, so houses either remain unsold or go to “replacement Americans” who promply section it into apartments or rooms for rent (legally or otherwise).
In the years leading up to the election of Governor Christie, buying a home in NJ was the worst move possible; at least he has stabilized the taxes (resulting in the layoffs of thousands of municipal employees to a more affordable level). It isn’t a perfect scenario, but when your family grows to a certain size your monthly rent is higher than a mortgage payment would be anyway.
Yes, I don't like the thought of a fraud disability collector inheriting a million acres and never having to lift a finger in making the land productive. There has to be some check for this, and a low property tax would eliminate this problem.
Here in NJ many people have opted for the renters/hired hands option in part BECAUSE OF the property taxes. In the past, the taxes could be dealt with because we had better-paying jobs, and you would deduct them on your federal income tax return (and often get a rebate from the state as well). Now many of our good jobs have left; as a result, marriage/childbearing is dropping off (so less people need the space of a separate home), and people want to have the option to follow the jobs (”Grapes of Wrath” style). The income is not there to either pay the taxes or really benefit from the federal income tax deduction anyway, so houses either remain unsold or go to “replacement Americans” who promply section it into apartments or rooms for rent (legally or otherwise). In the years leading up to the election of Governor Christie, buying a home in NJ was the worst move possible; at least he has stabilized the taxes (resulting in the layoffs of thousands of municipal employees to a more affordable level). It isn’t a perfect scenario, but when your family grows to a certain size your monthly rent is higher than a mortgage payment would be anyway.
Yes, there is no check on high these taxes are pushed. In my previous post I spoke of a self-adjusting floating rate. I think that would be very good for home-ownership.