OPINION: Time to abolish all property taxes

The only solution to the problem is an entirely different tax code, one that eliminates property taxes and abolishes the board of tax assessors. The only practical way to do that is with an enhanced sales tax program.

Now I have, for a long time, had problems with the concept of property taxes. It makes no sense to me for a person or family or business to put forth the effort to secure a title to property, then be forced to pay rent to the government for property they supposedly own. Among the rights guaranteed by the Constitution are property rights. Yet government can slap a big tax on property, then seize it if the owner fails to pay that tax. Finally, people who go to the trouble to purchase and improve property are taxed. People who rent that property are not taxed.

People who use their property to produce food, minerals or wood products are taxed on the amount of property, not the production from that property. And they are required to pay the tax even if the property is producing no income. Property owners must pay taxes that benefit all citizens of the county, including those who own no property and pay no taxes.

Property taxes are often ill conceived and unfair to the property owner. I strongly support the idea of abolishing all property taxes.

So how do we replace the property tax? After all, essential county services must be paid for and tax revenue is the only source county government has for financing those services. I support an enhanced sales tax as the source of county revenues. By enhanced, I mean that the sales tax should apply to all financial transactions.

Currently, we pay sales taxes on merchandise we purchase, but not on most services. If you take your car to the garage, you will be charged sales tax on the parts the mechanic puts on your car, but the charge for his labor is not taxed. Same applies for house cleaners, landscapers, swimming pool cleaners or other services. I think sales taxes should be extended to services as a replacement for property taxes. Stocks, bonds and insurance policies should also be included in the sales tax program.

We can easily finance country government in a way that places the burden on all citizens, not just the property owners. And that would make the tax assessors office unnecessary, thus solving that long-standing problem.

Frank Gillispie is founder of The Madison County Journal. His e-mail address is frankgillispie671@msn.com. His website can be accessed at http://frankgillispie.tripod.com/