No One In America Owns Their Own Home

The American Dream. Homeownership. The three bedrooms, two bath, two car garage, lush green yard, and white picket fence dream home.

According to the March 5, 2022, US Census Bureau the current rate of homeownership in the US is 64.8 percent.

Over one third of Americans don't own a home.

The median U.S. home price just passed $400,000 for the first time ever, according to data from the St. Louis Federal Reserve.

In Gallatin County Montana where I live the median home price just passed the one-million-dollar mark.

You can get a nice townhouse or condo for around $750,000.

Glad mine was nowhere near that price and paid off many years ago.

But according to the laws of the state of Montana and every other state — if I fail to pay the property taxes it can be taken from me and sold to someone else.

In the grand scheme of things, the state owns my home and I rent. Sound more like a Russian nightmare than the American Dream.

Property Taxes Are Always a Hot Topic

Every year property taxes become a hot topic on my radio show.

People calling in wanting to know how they’re assessed. Where to appeal and why are they so f***ing high?

The Bozeman, Montana city commission is obsessed with low-cost housing.

How can teachers, fireman, policemen, and Interstate off ramp panhandles afford to live here?

No current corner lot homeowner wants his million-dollar home at one end of the block and a $220,000 at the other.

While property values are a pain your property is still a major investment that usually appreciates in value over time.

But there’s also the problem of older folks on fixed incomes being property taxed out of their homes.

Prop 13 Was a Good Start

California introduced “Prop 13” which said your property taxes are the same each year you live in the home.

When you leave the home is reassessed and the new owners will have a higher tax that will remain the same until they leave.

This did three very important thing. One, it kept neighborhoods together.

Two, families maintained their homes so the value of the property would appreciate but not the tax bill.

Three, seniors were able to stay in their homes longer.

My idea to Eliminate Property Taxes

Your property taxes would be based on the income your home produced.

In my case I would have some tax for writing income and consulting out of my home office.

If your home was your home only with no side income done in the home, then there would be no property tax on that home.

When the mortgage was paid you would own it outright like your car or lawnmower. No sheriff could come along and kick you to the curb for unpaid taxes.

To offset the loss of taxes on personal property those commercial properties that produce income would have to pay more in taxes.

Won’t that mean higher prices for goods and services? Yes, it would but hear me out.

The reduction of home property taxes and the increase in commercial property taxes would take place over time — perhaps ten years.

Customers with no property taxes would have more disposable income to help them maintain their standard of living by paying a little more at the store.

Currently commercial properties are not all taxed the same just as homes are not taxed the same.

Not all prices would rise at the same rate. Some things would be more some others might stay the same or be less.

In a low population state like Montana, I think this could work. Imagine moving to a state where no one could take your home from you?

What would that be worth?

Some Final Thoughts

There are two certainties in life. Death and Taxes. Getting rid of a tax to a politician is akin to heart failure.

They begin to sweat, chest pains, pounding heart. OMG how are we going to make up the difference is the common refrain.

They never say, “Let’s cut back on some of our spending.” But they always say, “Tax and spend is all we know.”

Maybe my idea will work and maybe it won’t.

For the time being I’ll just sit on the deck of my palatial estate with a strong adult beverage and survey all that I don’t own.

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