I refuse to get into prop 13 debate with you. I am sorry but I didn’t read your reply. I don’t think taxing unrealized gains is fair. I am saving us both time and bandwidth by not engaging with you on this. Thanks.
ex: i bought a tractor and i will be making payments for 60 months. i paid the required taxes on it at the time of purchase and that is included in the loan repayment. i can depreciate the tractor as a fixed asset. i can claim deductions for repair/maint/service. the tractor is useful and still working even after i pay off the loan. after 60 months, i am not expected to pay a tax for it. even though i have no more payments and i still use the tractor to farm to generate income.
the realisation requirement is the fundamental rule of the IRS. asset appreciation is deferred up until realisation. the quality of life doesnt improve in an old house. if there are improvements made to the building, the assessment changes and the tax amount will change too. california increases property taxes by a capped percentage every year. it is govt spending that has gotten out of control and this spending is not always for the benefit of the tax payers in california. so perhaps thats where the fault lies.
if you change the IRS rules in this regard, the entire economy would become unstable and collapse. the problem is that CA govt spending is bloated and there is no accountability. there is a lot of money. the state is highly taxed. we are not asking enough questions and instead targeting the weakest participant because its the easiest and laziest thing to do.
Real property in most US jurisdictions; cars in several US jurisdictions (though this is sometimes obscured.by opaque terminology; e.g., California has “registration fees” that are, in effect, an ad valorem asset tax on automobiles); net personal wealth in several international jurisdictions.
> the realisation requirement is the fundamental rule of the IRS
That's income taxes (on gains), not property/asset taxes (on value).
> There is a realization requirement for tax on value of asset class like property
No, there isn't.
Realization is what the IRS uses as the taxable income event for taxes on capital income (gains).
It is not, in any of the US jurisdictions that tax assets (real property or otherwise) a requirement for taxes on asset value, and doesn't begin to make sense for such taxes (one purpose for which, in some theories of tax on “hard” assets like real property, is motivating sale of idle assets to those who will productively employ them.)
Taxing assets isn’t taxing gains, realized or not.
Flows vs. stocks.
(You might also object to asset taxes, but that is a fundamentally different thing than taxes on unrealized gains.)