Argentina to seek looser foreign ownership rules for rural land

[Cordoba]

you are kind of proving my point.
a family, here, can hang on to land forever.
no property taxes, no school bonds, no inheritance tax.

In the USA, I live in an agricultural area, and I own a small farm.
the average price per hectaire there, assuming it was not zoned to build homes, (which could double or triple it). is around $28,000 USD.
The yearly property tax expense there for 690 hectaires would be around $20,000 USD.
Thats what happens when you have a tax system that is NOT designed to protect inherited wealth at all costs.
NYC gets around 50% of its $120 Billion tax income from real estate taxes.
Buenos Aires gets around 1% of its tax income in ABL, which is all immediately spent on garbage collection, street cleaning, and drains.

so the idea that a family can afford to keep raw land, vacant and uncultivated, for decades, is a direct result of the taxation system, which was designed to protect oligarchs and large property owners.

It might be very state-specific, but I see the opposite. Farmers don't pay anything where I live in the USA. Ag Use property tax is about 1% of residential or commercial use. A million-dollar farmland pays the same property tax as a $10k residential lot. Farms are exempt from the state's inheritance tax; they don't pay sales tax on most things they buy. No export tax and receive a significant amount of subsidies. Income tax only on profits. Then step up in basis on death.

 

[Ries]

It might be very state-specific, but I see the opposite. Farmers don't pay anything where I live in the USA. Ag Use property tax is about 1% of residential or commercial use. A million-dollar farmland pays the same property tax as a $10k residential lot. Farms are exempt from the state's inheritance tax; they don't pay sales tax on most things they buy. No export tax and receive a significant amount of subsidies. Income tax only on profits. Then step up in basis on death.

It varies a lot from State to State, the USA is a big place.
I own ag zoned land, and its in open space zoning, which bumps my property tax down.
But I also live in a place (the PNW) where there hasnt been a $10k residential lot in 60 years or so.
A half acre with a rotting mobile home on it is minimum a half million where I live, in a small agricultural county.
East of the mountains, far from the city, in hay country, I have friends who would have to pay $500,000 for 3 acres with a mobile home on it.
The average price of a house in the entire USA is over $400k now,
And the average national price for an acre of land is $4000 an acre and up.
Estate tax does apply to farms in my state, but the minimums are quite high, and it seldom applies.


but regardless- there is no real estate tax on most rural land in Argentina, certainly nothing like in first world countries.
And the net effect is that very large estancias stay in families for, literally, centuries.