April 2, 2013
Family Fortunes and the I.R.S.
Why do we tax what we tax? In subsection C of §21. Other Property Exemptions of ARTICLE VII. REVENUE AND FINANCE of the constitution of the great state of Louisiana, the following is exempted from the property tax: "(19) All artwork including sculptures, glass works, paintings, drawings, signed and numbered posters, photographs, mixed media, collages, or any other item which would be considered as the material result of a creative endeavor which is listed as a consignment article by an art dealer." Is Louisiana great or what --- an actual limitation on the power of government to tax. Louisianans themselves created this limitation in 2006 by voting for Amendment 5: the Exempt Art from Ad valorem Property Tax Act, which was legislatively-referred. What's interesting here is that we might surmise that prior to 2007 Louisianans were paying property taxes on their art, but not on categories of property that pose a cost to society. After all, your refrigerator can leak coolant, which some...(Read Full Article)