RamRabbit@lemmy.world 1 week ago
Wealthy folks (in general) are heavily involved in property and consequently pay considerable property taxes.
It is taxed as such as it is a limited resource.
RamRabbit@lemmy.world 1 week ago
Wealthy folks (in general) are heavily involved in property and consequently pay considerable property taxes.
It is taxed as such as it is a limited resource.
nerv@fedinsfw.app 1 week ago
That might be correct in some places but not where I live.
Recurring taxes on property are calculated with the age of houses taken into consideration. This means the property value for taxation actually decreases over time, unless a given area undergoes through a serious development effort that forces property value up. This can reach such extreme cases that it is possible to get away with remodelling a house - as in a single standing building - completely, fully modernize it, and still keep its property value untouched, unless swimming pools and other value increasing additions are put in.
Property value and commercial value are separate and independent concepts. A property appraised for taxation in 100€ can sell for 100 times that value. There will be sale fees taxes applied to the transactions itself, for the buyer, and the seller may have to pay income taxes on the sale, but there are way to skirt most of these.
And then there are rents.
I pay more taxes on my work than a person for the rent they receive by renting property. It used to be a flat rate of 28%, equal to deposit interest and other values, but then someone said if the taxation on rents was to go down, the rents would go down and more home would come into the market. Except it did not happen and instead rent shot up and opaque companies started buying homes to rent from people that could not be bothered to manage what they have and pay their taxes on a yearly basis.
Everyone loses.