My state legislature (Pennsylvania) is currently kicking around a number of ideas for property reform, including an amendment to the state constitution outlawing the use of real estate taxes to fund public schools. Apparently, the $1 billion dollars Governor Rendell promised we would get from slots and use for schools hasn't quite materialized. In some parts of the state, school taxes are quite high--several thousand per year. The spending per student varies widely, from as low as under $2000 per student per year to over $21,000 per student per year. It sure doesn't look very equal. We have 501 school districts in Pennsylvania, each one ruled by a local school board. The persons elected to school board range in intelligence, talent, and dedication from Moe and Curly to the caliber of a Andrew Carnegie, or possibly a Henry Ford. Some folks manage to get themselves elected to school board to right an old wrong (real or perceived), get their family members jobs in the district, or just grind another axe. A product of what was then, and still appears to be, a fairly decent public school district in Pennsylvania, I went on to college and majored in English Literature. It is my study of literature, and Charles Dickens in particular, that causes me to cynically say that I cannot ever envision my state (or any other state) eliminating property tax as a source of revenue for anything. Various Dickens characters, including some in Great Expectations referred to 'portable property'. Portable property was, and is, just what it sounds like: property you can move around with you. Easy to conceal in many cases (some extremely valuable items, like gems and precious metals are quite small), and therefore hard to tax. Real estate, on the other hand, is really hard to hide. I'll never forget a great story I got from a student in an appraisal class several years ago. As an icebreaker exercise, I told everyone, as they introduced themselves, to finish this sentence: "The weirdest thing I ever saw while doing an appraisal inspection was...." Well, the weirdest thing for Phyllis Riccadonna, from Elk County PA (if you don't know where, it's at the end of the world--turn left), who went out to do an inspection and couldn't find the house. She searched and searched, finally asking a man sitting in (what else?) a pick up truck next to a metal storage building where so-and-so's house was. "Right here" he replied, taking her inside the metal pole barn, where a complete ranch home was located. "I'm not paying taxes on a house" he asserted. Well, the roof on that place would probably not wear out...and it might be great house for someone who works third shift and wants darkness at noon...but back to the point--real estate is just too darn attractive for taxing bodies. It's there, it can't be hidden, ownership records are for the most part public--it is a tax collector's dream. So, although I'm watching the debate in my home state with interest....I don't think it has a 'dickens' of a chance.

Melanie J. McLane, ABR, CRB, CRS, ePRO, GRI, RAA, SRES, SRS,  32 year veteran of the real estate industry. Offering training, speaking and consulting throughout the industry, I teach everything from ABR to USPAP. Certified ePRO Instructor. To contact me, email me at: melanie@TheMelanieGroup.com or visit my website: www.TheMelanieGroup.com