Join our host and special guests: former Representative and Senator Julie Frye-Mueller; Mike Mueller, retired engineer; and Matt Smith, host of the Straight Up with Matt Smith Podcast
Property taxes are infinite rent! You don’t really own your property. I’m a fan of removing prop taxes… but all else equal, home values would climb faster (lower ownership cost → higher demand). The increase in property values would also likely offset any savings for renters.
Replacing it with the transaction cost would also shift the tax burden onto more South Dakotans, even when considering out of state travelers. Best would be removing gov’t bloat/waste and lowering property taxes accordingly. But that’s not realistic. So, I think I’d support this effort (would need to dig in more).
Property taxes are infinite rent! You don’t really own your property. I’m a fan of removing prop taxes… but all else equal, home values would climb faster (lower ownership cost → higher demand). The increase in property values would also likely offset any savings for renters.
Replacing it with the transaction cost would also shift the tax burden onto more South Dakotans, even when considering out of state travelers. Best would be removing gov’t bloat/waste and lowering property taxes accordingly. But that’s not realistic. So, I think I’d support this effort (would need to dig in more).