David (I think) in an earlier posting spoke of the end of the limited market
value increase portion of the law, which was intended to protect those on
fixed incomes.  My recollection of news about the tax law passed is that this
clause wasn't renewed, but also doesn't expire for at least a couple of years.
The issue was that if the public wants to keep it, they need to make sure that
the legislators need to pass a renewal.

I think that may be what kept Bob's taxes to an annual inflation of 8 12%.

California went much farther when they passed Proposition 13 that froze the
taxable value of a house (maybe all property) until it was sold.  That has
led to pronlems in school funding.  I don't think that it was the total tax
paid, but I could be off on that.

David also wrote:
> Also, I don't want to argue that
> commercial-property taxes are perfectly fair for all payers. Just like
> residential property taxes, they don't take into account ability to pay
> (corporate profits).

I have a problem with the idea that if you had lower profits you wouldn't
have to pay [as much] property taxes.  Currently property taxes are part of
operating expenses and therefore reduce profits.  A corporation like Bob's
could shunt a bunch of money into salaries so that there is no profit, thereby
reducing or eliminating property taxes, depending on the rules.  Such an
approach might also cause accounting headaches in figuring taxes between
state and federal.  How would the city, county, and state be able to predict
how much tax revenue there would be if it depended on the fiscal success of
each corporation?  You would also need to build in a couple of years' lag so
that you would have profit figures to base the tax on.  Imagine the paper work
needed if a corporation filed an amended tax return that had a significant
change in profitability.

Bruce Gaarder
Highland Park  Saint Paul
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