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I mean, you pay property tax whether you live there or not. I don't know how this works in other states or other countries, but at least in New York a primary
by jrockway 3y ago
I mean, you pay property tax whether you live there or not. I don't know how this works in other states or other countries, but at least in New York a primary residence has tax advantages.
That said, I'm not sure what you do with a rich municipality that has no residents. You probably want the corner store to be open when you go out there for the winter for some reason, and with no customers, that's not an economic reality.
- polski-g 3y ago"Paying property tax" does not fund the local business revenue needs.
- jrockway 3y agoTax dollars can be used for pretty much anything. "We'll write you a check every month if you keep your store open," for example. I think infrastructure needs to come before people will come. "Induced demand" basically.
- fomine3 3y agotax valuation is almost zero.
- throwaway2037 3y agoThis is not correct. The house is worth zero, but the land has value. This will generate tax revenue.
- fomine3 3y agoRural land isn't technically zero tax value, but it's too minor as a revenue.
- throwaway2037 3y agoWhat? How else does local (rural) gov't generate revenue? It's land tax or nothing. In Japan, sales tax (VAT) is national.
- Ekaros 3y agoLand tax would be based on value of the land. If land has very low value then the tax would have to be extremely high to generate meaningful revenue. In worst case it could be more than value of the land.
- bobthepanda 3y agoOf all the things Japan has been doing, skimping on infrastructure is not one of them.
- ekianjo 3y agoMoney is fungible you know
- Ekaros 3y agoNo income tax is paid. The central government is less likely to pay services. No economic activity happen, let's say barbers with enough users year round. And so on.