Property Taxes

Alabama could probably stand to raise property taxes a smidgen, as long as there are commensurate cuts in growth-killing income taxes and curbs on other disincentives to wealth creation.

In general, I think that the property tax is a fairer form of taxation than the income tax, inasmuch as it is more directly related to the essential functions of government - like enforcing law and order, building and maintaining infrastructure, etc.

However, those who are constantly beating the drums for higher property taxes should beware of what they ask for. Property taxes can quickly become the most onerous form of taxation when they are allowed to be imposed with few limits. Luckily, property taxes in Alabama are subject to voter referendum. It's not that way in many other states, and lawmakers are being held accountable for the results.

Soaring property taxes are a top worry in state legislatures across the country, where lawmakers are trying to appease disgruntled homeowners and, in some cases, courts that are demanding change in the system so schools are more equitably funded.

Some states are weighing plans to lower taxes. Others just want to keep them from rising too fast. Still others are aiming to substantially change the tax system and find another way to help pay for schools that closes the quality gap between wealthy and poor communities.

"People are facing being taxed out of their homes," said Ted Harris, a 69-year-old retiree living on the Nevada side of Lake Tahoe, whose taxes climbed from $2,200 in 1990 to $12,000 last year. "Government simply swallows the money and finds lots of reasons to spend that money."

From Texas to Illinois to Pennsylvania, lawmakers are weighing property tax caps, limits, exemptions and other ways to ease the burdens for homeowners - whose tax bills are the down slide of home values increasing. Proposals to change the system have become part of the gubernatorial campaigns in New Jersey and Virginia, the only states with governor's races this year. (AP)