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EDITORIAL: Property taxes

Group wants to qualify another ballot initiative

The business-page headlines bray that home resale prices in Southern Nevada are plummeting. And defaults by "sub-prime" mortgage holders could depress things even more.

Local tax assessors don't wait till a property changes hands to revise its valuation, of course. Homeowners regularly saw their bills soar during the go-go '90s -- even on houses that hadn't changed hands since the Reagan years. If a house down the street sold for $50,000 more than last year, your bill went up, as well.

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  • So property tax bills -- and monthly mortgage payments that are adjusted to include those bills -- should now be dropping all over the valley. Right? Sorry.

    That means there's still a considerable hunger among voters for a more permanent limit on property tax increases -- something closer to California's Proposition 13 -- says Sharron Angle, the former Republican state legislator and unsuccessful 2006 congressional candidate.

    Ms. Angle heads up We the People of Nevada, an outfit which aims to qualify a ballot measure to roll back assessed property valuations to an undisclosed year, place a 1 percent tax rate on those values, and then cap annual tax bill increases to 2 percent.

    Ms. Angle's outfit announced this week it has just banked an anonymous $200,000 contribution to kick off its fund-raising efforts. Two previous attempts to qualify similar amendments -- efforts dependent on volunteer petition passers -- failed to gather enough names.

    An added obstacle was added when the last Legislature passed a requirement that signatures be collected in all 17 counties.

    Assembly Speaker Barbara Buckley, D-Las Vegas is opposed.

    The 2005 Legislature "came up with a bipartisan solution which gave longtime homeowners relief," Ms. Buckley protested this week, referring to the two-tiered legislative edict which now allows property taxes to rise by 3 percent yearly for primary residences, and by 8 percent annually for commercial, rental and other property. "Why do we need to come up with another measure that some out-of-state financier wants to import to Nevada?" she asks.

    (Ms. Angle isn't saying where the $200,000 check came from, but blaming "out-of-state ideas" always sounds good. We await Ms. Buckley's renunciation of such out-of-state ideas as seat belt, motorcycle helmet and draconian DUI laws.)

    "We have to maintain a balance," intones Ms. Buckley. "We want to keep taxes low and stable, but we want to make sure we're not going to hurt our schools." But Ms. Angle quite sensibly points out our mercuric Legislature could alter its current property tax formula at any time -- a volatility that would be curbed under a constitutional amendment.

    The real problems with the current property tax system are more deeply ingrained than either of these parties seems ready to confront, of course.

    In the first place, why should those who buy real property with after-tax dollars then have to pay additional "rent" to their local governments indefinitely? It's interesting to note how the political class recoiled with horror at that portion of last year's eminent domain initiative that would have declared property rights "fundamental rights." Can we be taxed for exercising a "fundamental right"?

    But second, even if property taxes are deemed an appropriate way to fund local governments, why not set the annual or biennial budget, add up a "grand list" of assessed property, and then regularly re-set the tax rate to produce only the revenues needed -- with the rate to be OK'd by public vote of the elected county commission?

    Under such a system, rapid economic growth could actually cause tax rates to drop, rather than generating unforeseen "spend-me-quick" windfalls for our entrenched porkmeisters.

    In the meantime, however, if Ms. Buckley is correct and voters are happy with her current assurances and guarantees of "low and stable" tax bills, she need not worry -- Ms. Angle won't be able to gather enough signatures to put together a softball team, and this "problem" of uppity peasants attempting to set their own tax rates will promptly disappear.



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    Randy wrote on August 01, 2007 07:25 PM: Ken - I cannot argue with you. What you stated is true. But there is a very valid reason for the delays. There is still a shortage of police officers in Clark County. Calls to the police must by necessity be prioritized. Metro follows the same rules of triage that all hopital emergency rooms follow.

    I have listened to a friend's radio scanner. I was amazed at how busy Metro really is. I was also a skeptic concerning Metro's requests for more officers. Not any more. They truly do need more help.


    cas123 wrote on August 01, 2007 05:47 PM: There is an increasing loss of faith in cops/fire dept. due to disconnect between myth of "low pay" (not when you look at actual total comp per labor contracts) and reality of overstaffed functions (hire a public sector worker = voter in favor of higher taxes).

    The truth of cops isn't NYPD Blue, SWAT, or even "COPS" - for every "line" position that could even theoretically be dangerous (and the truth about line positions is that they are more unpleasant than actually dangerous - look at OSHA stats...) there is *at least* one office position occupied by a lard-butt bureaucrat that is in more danger from heart disease (surgery paid for by taxpayer) than getting shot.


    Aaron wrote on August 01, 2007 05:43 PM: One "intelligent alternative" is to increase taxes on the casinos. They are multi-billion dollar enterprises and already pay much HIGHER taxes in other states with no indication that they're moving out of those states. As for property taxes, once the assessed value of your home and property are inflated, that inflated rate rarely goes down even if the property and home are reevaluated at a lower amount. This happened to my parents and until they raised the issue with the city, the taxes on their home, originally purchased at $186K and reassessed at $300K and finally reduced to $210K, would have remained at the $300K level.


    Ken wrote on August 01, 2007 01:59 PM: You have some valid points Randy, However we have increased police salarys, given them cars and SUVs nicer than any I could afford, built new substations that are nicer than the trump tower. With the increase in Police force comes what? DUI arrest are up. It makes them alot of money. If your house is broken into, you will have to drive to the nearest substation, and fill out a report. That is unless guns were stolen or you were there at the time and a gun was used.
    If your vehicle was stolen, you better hope the radio station puts it on the radio, or just start looking for a new one. No police is going to waste thier precious time looking for something that is not in thier best interest. Just drive with an expired tag though, then you will see our finest in action.


    cas127 wrote on August 01, 2007 01:49 PM: Another new idea:

    How about volume-weighting comparable sales for the purpose of assessing property taxes?

    It is well known that real estate prices are "sticky" - that is, sales volumes fall off a cliff before median sales prices tend to fall very much (for an example, well, see almost every boom metro over the last 6 months...)

    And yet, our tax overlords choose not to play fair (big surprise) - nope, they prefer a system that taxes us 2 or 3% (NV is relatively better off in this regard - charging "only" .9 to 1% of assessed value) of overlord determined home value, regardless of boom market, flat market, or bust, teacher-only market (when 20% of the population is on the public teat, *someone* is always doing relatively well...).

    How "comparable" are sales when sales volumes fall by half?

    Why should comparables be solely determined by actual median sales prices (ignoring sales *volume*)?

    For all we know, a great many of the reduced number of sales might be made to Ms. Buckley's close-knit mafia family of lobbying public fisc feeders...

    Look, folks, the system is bullshit and always has been - the difference is that the national American economy is stagnant at best (and has been since 2000) and that we face unprecedented economic challenges (for one, China now produces $300 billion of US consumed goods, up from $100 billion in 2000).

    We can no longer afford the corruption that our political class has grown cozy and comfortable in.

    It is time to terminate them.

    And for those diehards who believe in Vegas exceptionalism (the 2002 to, er, 2006) boom - ask yourself this - if 50% of our besotted tourists come from California, what is propping California up?

    Actually, nothing anymore - the last RE boom is roadkill there.


    Steve wrote on August 01, 2007 01:35 PM: Randy: The "alternative" is to control spending. Cut the many, many, many expenditures that are not "necessary". Stop government officials from giving themselves unnecessary excessive pay raises every year. Require people like our illustrious convicted "representatives" to pay back all of their salaries they drew while committing their criminal activities in addition to all of the bribe money they accepted and place that towards funding "this City and County". Raising taxes should be a VERY last resort...instead, it's the first.


    Randy wrote on August 01, 2007 12:49 PM: I do not like taxes either. But, I have not seen Thomas Mitchell nor any of you offer an intelligent alternative to fund the needs of this City and County.

    I suggest that all citizens of Clark County who agree with you, especially Dr.(of what)? Paul, place your names on a list of addresses that Metro and the Fire Department need not respond.

    Property values in Clark County escalated due to the greed of investors, and people are still moving into Clark County at a rate exceding 5,000 per month. Get real people.

    And finally, to any idiot who believes that we do not need more police officers, you must be on some really good LSD.


    ra wrote on August 01, 2007 12:26 PM: we're from the govt.and we're here to help you


    Rob LoBue wrote on August 01, 2007 10:23 AM: I just love the tried and true comment of "we want to make sure we're not going to hurt our schools." This fallacy assumes that every last dime in taxes are spent "on the children" and there isnt a single place anywhere else in a bloated budget to make cuts. What a total and complete joke and its time the electorate immediately kicks out any politician who uses kids as their means of robbing the taxpayers, whatever the cause!


    Gene Rodney wrote on August 01, 2007 08:37 AM: I totally agree with this editorial. I wish we had the opportunity that Initiative and Referendum presents, here in New Jersey. Our multimillionaire Governor (JON -NO SEAT BELT- CORZINE) pushed through an increase in the State Sales Tax rather than cut expenses. Since my property taxes in New Jersey increased (12%) last year, Nevada is certainly a bargain. By the way folks, I also agree with Kiplingers Magazine (11-06), Delaware is the most friendly state for Seniors. Average taxes, on a 300K home are $1,500 annually and a Senior gets an additional $500.00 off. And of course there is no sales tax in Delaware. GO REBELS IN 2007/2008!


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