[ksec]

>you have to pay 2% of its value in taxes/year?

Sorry for being naive, that is the first time I heard of property tax in % of value every year! No wonder why so many comments were referring to what happens to China when they introduce property tax.

Coming from places where we have tax, but none of them are as high or based on its property value. Isn't that basically "renting" the property? For a million dollar value flat I have to pay $20K Every year? Or $1.6K every month? That is pretty insane if you ask me.

And why are people continue investing in US housing? So these tax, assuming being paid by its owner, are basally passed on to the lease? So a rise in property value will add an extra 2% effect on its rental pricing?

I would have thought property tax should lower the interest of investment in property, but that doesn't seems to be the case in US.

[imtringued]

Okay this sounds crazy, why on earth would anyone tax the market value of the building or apartment? Generally the idea is to tax the land not the property. This way multi family homes can split the tax burden vs a single family home paying the full tax.

[vkou]

You're right. Taxing the cost of the land + the cost of the building is insane.

Unfortunately, that's exactly what every municipality in the United States is doing, right now.

Most economists believe that only taxing the value of the land would be better public policy.