Why conservatives fail . . .
Too often ‘conservatives’ become unwitting dupes for populist rabble-rousers, acting to increase unfairness in government, and pointing to the obviously wrong causes of everyday problems. Worse, so-called conservatives often rail against the cornerstone of capitalism, the prices set by the market. A case in point is real estate re-assessments and taxes.
We are taxed. It may not be pleasant, but it is a fact and it is a necessity. It is also a process that cannot be absolutely ‘fair’. As a society, we try to make government fair to everyone; to make everyone carry ‘their fair share’ of the necessary burden. We try to keep taxation itself from perpetuating poverty, and give breaks to charities and religious organizations.
No form of tax satisfies the goal to be perfectly fair and just, but one of the methods that is used to be equitable and just for all is taxation on capital. This is the real-estate tax, based on the assessed value of the property. In broad terms, Virginia mandates that the assessments on real estate keep step with reality; that the value of the real estate on the tax books be kept up with the actual market values of property.
With a few exceptions, reassessment —an updated assessment— must be done at least once every fours years. This is simply an issue of equality and fairness. The state tracks assessed values compared to actual sale prices –the open market– and penalizes local governments by withholding finances when local assessments fall too far below market prices.
It’s also mandatory for local government togive the owners notice about changes in assessed values, explain how or why values changed, publicly disclose assessments, and allow for assessment correction by a court or board of equalization.
There a a lot of minor rules and exceptions —and plenty to quibble over— but nothing changes the overall concern that a tax based on property value should have the property valued as accurately as practical. Assessed values should be real values; with reality enforced by the market value (capitalism) that equals appraised, estimated, assessed, and reassessed value.
So what’s the beef with reassessments?
How can ‘conservatives’ get upset over the marketplace? Why are the alleged supporters of capitalism distressed by capitalism itself?
Virginia Republicans have a creed that says “ the free enterprise system is the most productive supplier of human needs and economic justice . . .” and also states that people are “. . . entitled to equal rights, justice, and opportunities and should assume their responsibilities as citizens in a free society” Not equal outcomes, a socialist construct; but equal liberties and treatment under the law.
Yet in the hue and cry over reassessments some of these folks act as if they loathe free enterprise and suggest blatantly unjust methods to ‘equalize’ the outcomes. Others are exaggerating imperfections in the system —and ignoring the means to correct them— to decry all of it.
Implying that the new assessments will raise taxes is a far cry from responsibility —assessments do not raise taxes— but a tactic to scare people into rash action . That’s a characteristic of lefty liberals (see the congressional economic stimulus package for another example) and it’s no surprise the to find a Democrat in the front of this. In this case it’s the county’s leading Democrat, and sure enough, he’s leading these ‘conservatives’.
Conservatives fail because they are a small group, and have tried to become larger by allowing non-conservatives in. This is a problem plaguing small movements, and the early Party had its problems with John Birchers, loonies, and other infiltrators before it got rid of them. Conservatism is a fine doctrine –the best in my opinion— but it must shed those self-professed members who oppose and damage it.
February 4th, 2009 at 9:41 am
The beef with re-assessments is because it is NOT driven by the market. Assessments are a GOVERNMENT operation, not a market operation. In northern Va., homeowners are paying MORE taxes on houses that are valued less. Some houses, re-assessed to be at least 80K less in value are being taxed at $200 dollars more than they were in 2006, when the values were at the peak.
Virginia is addicted to high assessments. The counties depend on that to pay for, well, everything. When the value of a house drops, the rate is suppose to go up and vice versa. Example, 200K house rate at .80 per 100. Assessment drops to 150, and the rate rises to $1. However, the last time the rate was at that level, was when the house was worth 90K.
This is only an example and the numbers probably don’t add up. But this is an example of what’s happening throughout Virginia.
Chesterfield was basing assessments on 2006, yet the values of the homes in 2008 were 20% lower. At least Henrico hasn’t gotten that crazy, at least for my house. However, they jumped on the bandwagon on the run up. I watched Wyndham homes jump from 250,000 to 400 k assessments in 2 years. If the trend had continued, these homes would be assessed at 600K now.
The counties were part of the bubble problem. The banks want to loan more money. Higher appraisals mean bigger loans. Assessments were based on selling prices, not independent appraisals. They rose in lock step.
Assessments do raise taxes. Go look at the actual assessments. The taxes go up if the assessment goes up or down. The counties are gaming the system.
February 4th, 2009 at 2:20 pm
Cargosquid, here’s the short version where you wrote:
That is the problem. You do not believe in the free enterprise system and you reject the fundamentals of capitalism. You should rethink your political ties, because ‘conservative’ is something you are not.
February 4th, 2009 at 2:28 pm
And here is the longer version:
Assessments are as close to the market as a government procedure can get. Many city and county assessments are made by private enterprise firms, some by firms that also do appraisals. The basic point is that the assessment — a measure of property value — is as close to what the market sets as possible. You are exaggerating imperfections in the system —and ignoring the means to correct them— to decry all of it.
Nice strawman. A close look shows you are advocating high appraisals or very high assessments? There is no link between assessments and taxes paid, because assessments do not raise taxes.
Virginia isn’t addicted to them because the state doesn’t tax real estate property. For the cities, towns, and counties in Virginia, it is the only significant allowed source of tax revenue.
Since you brought this up and you are objecting to reassessments — we can use Chesterfield as an example since you introduced it — it’s your responsibility to show how this can be accomplished. So within legal limits, show what Chesterfield County’s budget should be without any real estate tax at all.
Indeed. The numbers “don’t add up” and that is not “what’s happening throughout Virginia”.
That is simply not true.
Perhaps. So what?
Ouch, ouch, ouch, and more ouches. Counties have no ‘relationship’ with banks except among the nutroots and konspiracy theorists. More to the point, here you admit that assessments actually have kept pace with the market prices — exactly as intended by law to keep tax burdens fair and equitable — and you object to it.
BTW, since it appears you don’t understand: Appraisals are an estimate by an independent third party, to the bank, on what a property’s selling price is. Selling price; the reality of the free market.
Assessments do not raise taxes, the article was written after looking at dozens of reassessments. Assessments do not raise taxes; it is illegal for an assessment to raise taxes.
So in the end, you admit the assessments have nothing to do with taxes. Taxes rise, you don’t like it, you blame assessments (instead of vaccinations?) because you don’t know what else to do.
The only valid statement you’ve made is that counties ‘game the system’; they do, and the system they game is people like yourself who totally fail to understand what and why assessments are needed, object to a fair basis of taxation, and advocate a ‘fair outcome’ instead.
At the end of the day, you’ve misrepresented known facts, exaggerated slight imperfections to condemn the whole, shown you don’t understand the economy, and repeatedly attacked the free enterprise system. You need to look in the political mirror, because your post isn’t a conservative view.
February 13th, 2009 at 4:11 pm
Actually, I’m not against assessments. I’m for ACCURATE assessments and taxes. When I say that Virginia is addicted to high assessments/high real estate taxes, I mean the collective of the counties. Not the state government.
Assessments DO raise taxes. Mine go up all of the time. They just did. The counties are supposed to make it revenue neutral, but, they get exceptions. Henrico does it all the time. When the assessment goes up, the rate goes down and vice versa. I understand. But, as I have seen in assessment after assessment, especially in Norther VA, the rates on lower assessments have RAISED the tax. Not brought them to a neutral position.
And the county appraisers don’t have a relationship with the banks. I understand that too. But the appraisers look at the sales prices and raise the assessments. The commercial appraisers look at the assessments and raise the appraisal. The banks make out either way. As long as the value of the house is going up, all is well. When the value of the house is dropping, the assessments need to be adjusted and so does the tax.
My point was, albeit, poorly said, in a nutshell, was that real estate taxes should not go up when values go down. If the house’s value is going up, well, that’s the law in Va. The taxes SHOULD reflect the value. If the homeowner is losing value, why should he pay more taxes? My assessment did not go up this year, yet, I’m paying more in taxes.
The outcry is when there is a disparity between value of a thing taxed and the amount taken. The outcry also happens when taxes rise because the county is doing stupid things, ie, overpaying for property purchases, giving tax breaks to commercial enterprises with the justification that they did so that the county wouldn’t have to raise taxes on private property, and then raising taxes on private property, etc.
I don’t want a “fair” outcome. All taxation is forcible takings. There is nothing fair. Someone is always getting hurt by it. But, as a society we DO have to pay for governmental services that we have decided not to privatize. Personally, I feel that we could use more privatization.