Bill McGonigle's Weblog

Property Taxes, Eminent Domain, and Allodial Title

Posted by Bill McGonigle Thu, 26 Jun 2008 00:29:00 GMT

Who owns your property (real estate)? You do, right? Or maybe your bank does if you have a mortgage.

Nope, the State does. It’s held in a feudal-style system where the State may tax your property or take it at will. You’ve paid for a title to it, that is an exclusive use of the land, but that title is granted by the State.

This is why the State may tax your land, and if it so pleases them, take it for other uses. We have a guarantee of restitution for such takings, by the Constitution, but not a guarantee against such takings.

So, be careful to say, “I hold title to this property”, not “I own this land”.

There is another option, that’s called Allodial title. Allodial is from “without a Lord”, a reference to the feudal system where the Lord owned all the land, and merely leased it out to those who would work it. With an Allodial title, you own the land. It’s yours. Nobody can take it away with force. Nobody can tax it, it’s yours. Certainly the State may attempt to ply the land from you with an offer of cash sufficient to convince you to leave, but they can’t serve you papers and cut a check of their choosing.

Many NH Citizens equate a property tax with increased freedom, but in this light, it’s really a drain on Liberty. Now converting all NH properties to allodial title overnight wouldn’t work at all, there’s still some area that’s undefined. It’s argued that an allodial title can’t be mortgaged and it can’t be subdivided, yet I’ve seen no justification for this (do try to explain it to me). There’s also the issue of replacing the property tax with a just, fair tax. So far the best option I’ve seen is a head-tax, where each citizen is assessed an equal fee to support the services of the government. Setting this use-fee at a rate that every citizen can afford (how’s $500/yr?) would ensure a government that is as lean as it can be, and largess by the Legislature would be felt directly in the next yearly bill, which ought to encourage proper behavior by a legislators who wish to retain their seats. The current system of ‘sticking it to the other guy’ that the politicians play is ultimately destructive, as some day you’re going to be the other guy (only they’ll only pander to other people about that one).