Assess This

All this said, I do concede that there remains a problem with the property tax: its effect on low- and fixed-income homeowners. Rapidly increasing real estate values often mean that property tax burdens rise faster than income. Low-income homeowners and those on pensions or other fixed incomes do struggle to pay the property tax.

While Maryland, Virginia and the District all offer some form of tax relief for elderly and low-income taxpayers, the focus at assessment time is rarely on helping those who need it most. And more relief can be provided without dismantling the local public finance system. Governments, for instance, can enact circuit breakers, which limit property tax liabilities to a certain percentage of one's income. The income thresholds and reduction limits vary from state to state, but circuit breakers generally target those who need help the most. In the District, for instance, only those earning $20,000 a year or less qualify for the program.

There's lots more that can be done. The states and the District could provide property tax rebates to low-income homeowners, in the form of either income tax credits -- as Maryland, for one, provides -- or a check. Virginia and Maryland could also make use of deferral programs like those used by 24 states and the District. These programs allow senior citizens to defer payment on property taxes until their homes are sold, at which time the accrued taxes are paid out of the sale proceeds. I know -- if they die before selling their homes, their heirs will no doubt complain about the property taxes. But at least there would be no threat of Grandma being forced to sell her house to pay them. The problem with deferrals in the District and elsewhere is that most senior citizens don't know about them and so don't apply for them.

If we help the poor and elderly meet their property tax burdens, all legitimate complaints about the property tax dissolve. For all of you who still have a problem with your taxes, there are three choices.

You can sit back and think about what you're getting for your tax dollars. Are the schools good? Is the snow plowed? Does someone answer the phone when you dial 911? You just may be convinced that the price of your civilization is not terribly high.

Still unhappy? Then write your local politicians and ask them to lower the tax rate. Just because assessments are going up doesn't mean the government has to collect more taxes. Call them up and see if they'll lower the rate. If enough people call, maybe they will.

Alternatively, move to a place that has a smaller tax burden and fewer government services. Alabama, maybe?

Author's e-mail: dbrunori@tax.org

David Brunori, a contributing editor to State Tax Notes magazine and a research professor of public policy at George Washington University, is the author of several books on state and local tax policy.