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A related story about property evaluation for tax purpose:

Everyone is familiar with the practice of putting a low sale price on the bill of sale to reduce the amount of sales tax due. In the waning days of the 2003 session, the Kansas State Legislature passed a bill allowing the county treasurers to collect sales tax on vehicle purchases based on actual sale price or book value, WHICHEVER IS HIGHER. The bill became laws without much public awareness. In 2004, it became a political storm because people buying wrecked or beat-up cars had to pay sales tax on book value, much more than actual sales price. The law was repealed and the treasurers had to refund money to people who could prove an actual lower sale price. What a mess!

In Georgia, private transactions are exempt from sales tax. Only sales involving a bonafied dealer (business license, and other state or local certifications, etc) are required to pay sales tax. Should the sale have occured out of state, say, you cross the river and purchase an automobile from one of the 70 or so dealers in Phenix City, Alabama (a state record) when you register the auto in Georgia, you will have to pay sales tax to Georgia to bring up the amount of tax paid to the same level that you would have paid if the auto were purchased in GA. (Assuming the tax in AL were less than GA).

Several years ago, the state got the idea that they could place sales tax on all auto and airplane and boat sales. They collected the tax for about two years, until the courts determined it was illegal, and Georgia had to refund millions they had collected on all of those private transactions.

In Georgia, virtually everything is taxable if it has value. This is the major form of revenue for the local counties, cities, and school districts. The total amount they would collect would be same (their total annual budget) no matter what is exempt or not exempt, so taxing all property of value (both tangible and in-tangible) serves to spread that tax burden a little differently, but the total burden on the residents/property owners and businesses of the county are no different.

Charles

Ditto in PA!