3 ms·

If the market is perverted or highly irrational, it does make some sense. For example, just because there are no buyers on the market, doesn't mean your home ha

If the market is perverted or highly irrational, it does make some sense. For example, just because there are no buyers on the market, doesn't mean your home has no value. (Think of black markets. It's hard to find a buyer, but the item definitely has value) And many governments depend in part on property taxes, it would be a double crisis if a perverse stagnant housing market also bankrupted your government. The scheme for a fair nominal value assessment does seem challenging to come up with, though. Perhaps you anchor your valuations in a past year, e.g. "what this house would have sold for in 2002".

notahacker 10y ago
If it's a pure property tax (as opposed to a LVT) the simplest way to do it is to either (i) let the government set the taxable valuation but oblige them to buy the house at that price (plus a premium) if the owner disputes it or (ii) let the owner value the house but grant the government the right to buy the house at that valuation (plus a premium) if they dispute the valuation. Both options have the side effect of potentially adding a bit of liquidity to the housing market in a downturn.