Tennessee Realtors has joined a coalition of nonprofits supporting a campaign to pass an amendment to the constitution that will prevent the state from enacting a property tax.
The Chattanoogan reports the realtors group is teaming with the Tennessee Chamber of Commerce and Tennessee Farm Bureau to promote “Yes on 2,” with Gov. Bill Lee serving as statewide chairman for the effort. Tennessee does not currently have a state property tax, which are enacted by local governments.
Tennessee’s constitution gives the state government the right to collect a property tax. But while there has not been a state property tax collection since 1946, a proposed constitutional amendment on November’s ballot would ensure that authority is disabled for good.
“The Tennessee Realtors are looking forward to talking with voters about the importance of banning a statewide property tax,” said Chris Garrett, president of Tennessee Realtors. “Excessive property taxes could make the difference between a Tennessean being able to afford a home or being priced out of the market entirely, and we will always fight to ensure the dream of homeownership is in reach for Tennesseans.”
Smart move. Ridiculous how the elected officials here in Cobb County GA have continued to raise the taxes for whatever is needed for their current favorite project . You will Never get rid of it once voted in.
I would like to point something out about taxes and development. When real estate is developed for residential, there is increased need for water, sewer, storm drainage and roads. Who pays for it? If there is an agreement with developer to be responsible for a portion, like stop lights, turn lanes, sewer line extensions/capacity, water line extension/capacity, etc., then the price of lots has to increase in the development to cover the additional costs(landowners could take less for their land too), which is in turn passed on to cost of the homes/townhomes/apartments or condominiums that are being built.
If they don’t pass on costs to developer(and some costs like sewer capacity increases etc. aren’t passed on to developer) then the municipality is responsible. Where does the municipality get the extra funds for the development of infrastructure to accommodate development in their area? Taxes. It takes money to develop more residential and no one seems to talk about the infrastructure costs forced on States, Counties and municipalities. I can’t imagine what the data centers are going to do to infrastructure costs for States, Counties and Municipalities. I worry that the infrastructure will be developed(like roads, water, electricity, etc.) and then the projects are scrapped.
Everyone can agree that taxes are often wasted or even misdirected to projects that were NOT intended to receive certain tax money. But, on the flip side, I’m always amazed that people trash the idea of taxes in toto, rather than examining whether or not certain taxes (t certain levels) would do good things for a city, county, region, or State. Local property taxes can be misused just as much as State taxes can be misused. It’s all in who you elect to regulate and enforce how taxes are spent.
As a Realtor, I find it hilarious (and quite annoying) that the Real Estate Industry routinely blames “the government” for the high cost of housing, yet our industry seems to be the Vampire in the Room whose reflection in the mirror disappears when we walk by it, though our sinister presence is felt by all.
(a joke..lots of Realtors are thoughtful people, but you will see my point below).
Let’s examine our Real Estate Industry and its pivotal role in the High Cost of Housing, shall we?
Do we Dare? Oh yes, we dare, we dare!
I will use the shorter term “Realtors” to refer to the Real Estate Industry as a whole.
Here we go.
Realtors have long promoted “Never Ending Growth” (Never Ending Development and Never Ending Population Growth) as a Sure Fire way to push property values and home values higher over spans of time.
Land is limited, so the more crowded areas become, the property values zoom higher, unless there is a massive job loss in that area (Rust Belt). But the more desirable areas in the nicer climate zones or where good paying jobs are (or both) is where (and still are) the places where Realtors pushed and pulled to bring in buyers by the millions upon millions upon millions, and then promoted and praised those who had lots of children, children who would be future home buyers!
Yeah Baby! NOW we’re Talkin’! Ka Ching!
My parents were exactly those buyers, Post WWII young military parents who came to California to follow a job and stayed for many reasons, nice weather being one of them.
They also had 5 kids (and would have had 8…but for 3 miscarriages). I am one of those children. My parents more than doubled the population in 1 Generation within our core family, as did many of our relatives who also had moved to California.
Thus, the typical mid 1940’s thru end of 1960’s families were flooding into California and replicating like aphids, as any patriotic American was supposed to do, right? The Baby Boomer generation had arrived and its impacts for generations onward are still being felt, and Realtors LOVED to sell them all homes, and Realtors are still promoting more development and more growth (nothing has changed on that tune, same old song, same consequences).
Realtors promised home buyers that they would have a “solid return on investment” due to Never Ending Growth driving up their home values and their home equity. And that really did happen in many areas, and is still happening. For most homeowners who bought in early enough, the equity in their home is the majority of their assets. Realtor Promise, Kept!
But, the Tarnished flip side of that dirty little Coin is that new buyers often cannot afford a home or have to buy a much smaller home or condo or move out of state. If they do buy, they are paying a lot more now for a lot smaller home size (often no yard) because the Realtors’ promises had come frighteningly true. Home prices are thru the roof! (If you can afford a roof at all).
So who is to blame for the current High Cost of Housing?
It ain’t the Government! (not entirely anyway).
The “Guilty Verdict” goes to Realtors and to our Industry who clearly are to blame for shamelessly and proudly promoting Never Ending Growth. Realtors got EXACTLY what they promised, super high and now Unaffordable homes prices for a large percentage of people. So take a good look in the mirror to see the Realtor’s reflection cuz it’s Realtors who are to blame, at least in large part, but not entirely either.
Others are to blame, as well, because many industries and just individual people (like my parents) promoted Never Ending Growth, Never Ending Development, and Never Ending Population Growth, and, yes, to some degree, the Government (the politicians whom those same individual people elected) also rewarded Never Ending Growth and ignored the obvious impacts that would make life harder and much more costly for future generations, including impacts on the Environment that, in many cases, are NOT fixable with such a High Population.
WW! It’s fun to read the different opinions. I am a Realtor in Maryland, a state which taxes heavily, and a state which benefits from increasing appraisals, and the property tax that is based on the appraised value. Where does the money go? Into many questionable programs, is the answer. Check out Mayor of Baltimore’s pet program B’More to help kids but funds end up in his wife’s salary! This is why Realtors and members of the general population don’t trust or believe in property taxes. I say ” Good for Tennessee” – to fund it’s government via other means, and not following the path of Maryland.