What is Nostr?
Chris Guida
npub19z2…fkd4
2024-08-28 21:29:00
in reply to nevent1q…727m

Chris Guida on Nostr: Well yes, that's how property taxes are assessed, but no, it does not follow that ...

Well yes, that's how property taxes are assessed, but no, it does not follow that what's being taxed is an "unrealized gain".

A "gain" is something that happens when we sell an asset for more than we bought it. If property tax were a tax on a gain, the amount we paid for the asset would have to be taken into account so as to calculate the difference between what the property is worth now and what it cost us to acquire, ie the gain. Since property tax is assessed on the total value of the property, this cannot be what's happening.

The reason people buy property is to *use* the property, unless they are speculating. So what's actually being taxed is a "realized benefit" rather than an unrealized gain.

The government or security agency says "hey, you're benefiting from that property, and we're protecting it with our guns, we therefore impose a fee that is proportional to the benefit".
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