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Explain Like I am a child ... taxes. I get you pay taxes on goods you buy everyday. And you get said goods by paying a one time fee. But how come on a home after being paid off I still pay taxes...... (lemmy.world)
submitted 4 months ago* by to c/explainlikeimfive@lemmy.world
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I mean I paid for it like I would anything else I wanted. They charge a tax at checkout. So if I buy a house and pay the whole thing off, why do I still have to pay taxes on said house when I paid the whole agreed on price in full? It would be like me buying a six pack of beer I pay for it and tax at checkout. But then timely I have to keep paying taxes on the beer even though paid in full?

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[–] 4 points 4 months ago

I'll answer in a different way from others. Property taxes, in theory, ensure that the property within a jurisdiction is being used productively. Since you have to pay for the land no matter what, it's a good idea for you to do something with it that's productive. Even homes - it ensures that someone is loving theee and not just letting a house be empty.

In practice, that breaks down - speculation, tax writeoffs, taxes that haven't been adjusted in decades all mean that people/corporations don't give a shit and let property rot.

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