R: Exempt Possessory Interests in Real Property

Summary

Eliminate property taxes for individuals or businesses that use government-owned property for a private benefit worth $6,000 or less in market value.

Vote Yes

This is placed on the ballot by a bipartisan majority of the state legislature. This amendment is an example of how our constitution has way too many details in it - it's nuts that this cannot be accomplished with a simple legislative bill.

Arguments Against

Amendment R provides an unfair tax break for businesses and individuals who use government-owned land and puts a greater tax burden on others to pay for local government services. The state constitution requires that taxes be charged uniformly for all taxpayers. A small tax bill does not justify exempting a business or individual from paying the tax on the private benefit they enjoy on government land. Simple fairness demands that all businesses and individuals pay taxes, no matter how small.

Arguments For

Amendment R reduces the administrative burden of collecting a tax that in many cases costs more money to collect than it brings in to local governments. For example, the majority of possessory interests in the state are for agricultural leases, many of which owe less than $10 in property taxes. The cost of administering this tax - mailing notices, maintaining tax rolls, and collecting and enforcing the tax - often exceeds this amount.