Over the years the government has been through numerous changes in polices that govern the real estate industry. Most can bear witness to the fact that most of the polices that have been passed have been beneficial to all but there are some that have in one way or another affected a large portion of the society and they need to be addresses quickly. One of the most controversial tax policies is the property tax. Property tax is the tax that is on the value of the property owned.
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The issue on property tax is one of the biggest problems that many American families address in their daily budgeting. The tax set has seen many individuals lose their home simply because they have failed to cope up with the amount of tax that is charged on this property. In addition the burden has heavier on the individuals who have their houses on mortgage. This is because they not only have to deal with paying mortgage but also have to insurance and the property tax. This has lead to many of the individuals taking up second jobs and leaving in fear of not being able to pay the amount that is dew.
There many causes for the raise of this particular problem but the main is the fact that the property prices are on a constant rise for example in Alexandria the property prices have doubled over the past two year this has resulted in the doubling of the tax payable. This has greatly affected individuals who are living habitat for humanity houses. Since habitat for humanity is a nonprofit making organization most of the families that have acquired houses through this organization happen to be low ncome earners. Therefore a slight change in the amount they spend on property tax will affect the entire budget of the individuals. We this has a great effect in since the house that are built in this area have deed restrictions prevent their owners from selling the homes for profit or getting home equity loans until the 20-year mortgages are paid.
The government should consider various aspects in order for them to come up with tax policies that are lenient and are considerate to its citizens. Some of the available options are special tax assessment for individuals who are owners of home in the habitat for humanity areas, giving tax incentives like mortgages tax relief or a property tax relief to ease the burden these individuals are to pay other option may offering the individuals an opportunity to differ tax and pay later when they are able to pay it.
One of the options that are open to the government is special tax assessment for the individual who own property in the habitat for humanity areas. This option is among the best option since for one the deeds to the land explicitly prevent the owners of this lands from selling this property for profit. This therefore makes the property tax that is charged on this property is an unrecoverable expense to the property owner since he will not be able to sell the property at the current market going rate.
In addition the individual cannot take any home equity loan on these house therefore though they own the house they cannot in any way benefit from the houses as the owners. These calls for the government t come up withh a n alternative criteria of valuation of these particular properties. The government should enquire and take an in-depth research on the best criteria that is is effective and reasonable.
On the other hand the habitat for humanity can play their role in this emerging problem. Since there main aim is to provide a roof over the heads of low income earners, they could in one way help unite the individual who have acquire houses in this housing project and help they lobby of better rate for the property tax. Through having a union it is easier to bargain for better rates compared to an individual.
Other way that the habitat for humanity may help is by de-marketing the areas that are this helps the in reducing the demand for the property and in the long run maintaining the value of the property at a relative constant. Though this method may not be effective for a long period of time it can help them control prices before they get a workable solution. Another way that the habitat for humanity may use is through carrying out campaigns. Through these campaigns the group will be able to lobby for tax relief and sound tax policies
This property tax problem is a true picture of the effect of economic growth and the divisive effect it has on the different classes of people. Though the fact of an increase in the property values is a great benefit but it is a serious and painful ordeal to individuals in the low income earning bracket this brings into light the need for the government to make policies that are both reasonable and considerate to all the levels of income.