- Aug 3, 2012
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Property tax is based on value - not unrealized gain
I was going to go through your post line by line, but this one right here just confirms what I said about you not understanding what you're talking about. "Value" vs "unrealized gain" is not the distinction you think it is.
Let's say you bought a house for $100k. Now it's worth $300k, but you haven't sold it yet. Therefore, you own a $300k asset, with $200k in unrealized gains.
Capital gains taxes don't get incurred until you sell the house, at which point, you pay taxes on the sell price minus the purchase price (and minus any other exemptions, but we'll ignore those exemptions for now). In this case, if you sold for $300k right now, you would pay taxes on the $200k profit.
But that's not how wealth or property taxes work. Those get levied against things you own, not cash you've received. For the house, if the county assesses its value at $300k, then you pay property taxes on that $300k valuation while you own it, not after you sell it.
Regarding the states that levy personal property taxes:

State Personal Property Tax Law
Know your state's personal property tax regulations to know your rights and obligations. Speak with our expert tax lawyer for assistance.
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