Are there any municipalities in the US that provide home owners the option of making a lifetime property tax payment exempting them from property tax liabilities in the future? I’d envision something like this–a property is assessed at $100,000 and the county rate is 1.5%. The owner’s annual property tax bill is thus $1,500. The county offers to waive all future property tax assessments on the property for as long as the owner remains alive and retains the property for something like ten times that annual rate of 1.5%. If the owner takes offer and pays $15,000, he never has to pay again.
Searching around, I’m unable to find any such arrangement. I’m not sure why. Reducing current budget shortfalls at the expense of the solvency of future budgets is hardly unique in the world of government finance. Third-party lenders would step in, but it’s not obvious why that be a bug rather than a feature.
I’d think it would be an attractive revenue generator for local pols concerned about this year’s budget but not budgets a decade out, though it appears I’m incorrect. Countries that don’t have property taxes essentially mandate this by levying a stamp duty on property taxes. Monaco, for example, collects 6%-7% on property transactions but does not levy property taxes, so there is international precedent for it.