Rogue Tax

In my previous blog post I characterized the homestead property tax as being rogue. We all know that we need taxes to sustain our government, but it is very difficult to tolerate a rogue tax. The homestead property tax is based on a premiss that is impossible to sustain on its own. It is impossible to pay taxes on capital gains that one has not realized. To perpetuate the impossible property tax demand, the government assumes that all of us have other means of income to satisfy the impossible tax demand. Such an assumption, by the government, makes our homestead property taxes a form of extortion that can have extremely harsh consequences for the homeowner.

In Minnesota, are we all so desensitized that we can’t see that our homestead property tax is exclusively based on unrealized capital gains? I am convinced that there would be a massive protest if our income tax code would start taxing all of our unrealized capital gains. But why is it then that we can’t make the connection between property taxes and income taxes from the justice point of view?. After all, we pay all of our taxes from our incomes. Californians passed Proposition 13 that was a revolt/referendum against taxing unrealized capital gains for homestead property taxes.

Minnesota has the tax infrastructure and tools to make our homestead property taxes even more equitable than the California’s Proposition 13. I will comment on its details later, but for now, just click the MN Department of Revenue button above to see the resource for a just and equitable homestead property tax.

Our State Constitution, in its first article and section, states the following: Object of government.  Government is instituted for the security, benefit and protection of the people, in whom all political power is inherent, together with the right to alter, modify or reform government whenever required by the public good.
 
Our present form of homestead property taxes that take our homes as hostages in exchange for a ransom are punitive and in complete opposition of providing security, benefit and protection, It is extremely hard to accept the fact that the same government that is supposed to protect us has promulgated tax laws that harm us.

Allodial Title

Minnesota State Constitution ( Article 1, Sec. 15) grants us the right to have the American Dream of a homestead under an allodial title. That simply means that there are no “superiors” that can take away that right.

However, the Minnesota homestead property tax laws are in conflict with the allodial title concept of ownership. The laws usurp our State Constitution by placing the government as the “superior” over the sovereign rights of the property owners. In that position, the government has the ultimate right of possession or the authority to impose what amounts to a mandatory user fees for our homesteads. Such juxtaposition is the hallmark of a feudal style ownership that has been specifically prohibited by our State Constitution.

The dark side is that we are subjected by a rogue tax to sustain our local government services. But the bright side is that the rogue tax can be rehabilitated to join the family of fair and just taxes. However, before suggesting a solution, I anticipate there may be readers of my blog who don’t agree with the characterization of the homestead property tax as being rogue. For those skeptics, I will post blogs to illustrate that there is no other tax as aggrieving as the homestead property tax.

I view the “Property Tax Justice - Minnesota”  blog as a place for members to vent their grievances and frustrations about the property tax. But most of all, I hope that this will become a SUPPORT-ACTIVIST- LOBBY group to accomplish the MISSION of fair and just homestead property taxes.