Allodial Title, True Property Rights, do not Exist in the Land of the Free. Aside from eminent domain, there is a much greater problem with regard to property rights in America. We have the same property rights we might have under a dictator, or king which is tenant rights, or basically no property rights. This is an error with America from day one in my opinion, and it should be corrected. The problem is property taxes, and really the correct name for this tax should be rent. Throughout the entire history of civilization, property taxes have existed. For a brief time within a few western States in the United States, it was possible to own land outright without the possibility of it being taken by failure to pay the rent that your local government charges you each year. This type of outright land ownership is called allodial title. The two States where this is possible today are Nevada, and Texas. Nevada actually has recent legislation on the books regarding allodial title. There were also a lucky few who held such land in feudal Europe. Even during the early dark ages preceding 1000 A.D.
Nevada’s Allodial Title Granting Absolute Property Rights is almost Pointless
“Nevada’s Allodial Title System Described
The surest way to understand what Nevada’s new allodial title program is to ignore the confusing history of the allodial concept and examine the details of the program itself. To take part in Nevada’s new allodial title program, a property owner must meet several stringent criteria. First, he must own the property outright, without any mortgage or encumbrance. Second, the title holder must actually reside on the property. After completing a simple one page form and submitting it to the program administrators, the property owner is told the amount he must pay to “buy out” his property tax obligation. He must then pay the Nevada State Treasurer this fairly large lump sum of money, which, behind the scenes, the Treasurer will place into an ‘Allodial Title Trust Fund’ in the property owner’s name. At that point, the property owner need never pay property tax again, providing he is not forced to surrender allodial title for any of several reasons.
The amount of money the property owner must pay to buy out his property tax obligation is actuarially determined by the Treasurer to be equal to the total amount that the property owner would have paid in property taxes throughout his estimated lifetime, including normal property tax increases for a certain projected average level of improvements to the property. This amount will be held in the Trust Fund by the Nevada Treasurer and the principal and interest it earns will be used to pay the property taxes on the owner’s behalf. If the property owner dies ahead of schedule, the excess left over in the account will be refunded to his estate. If the property owner lives much longer than average, he will receive a windfall, since his property taxes will continue to be paid, at state expense, even if his own Trust Fund is exhausted. In no case will the property owner be required to make further contributions to his Trust Fund to retain allodial title. The amount that a property owner must pay to acquire allodial title is therefore much higher for younger people, since the Treasurer is expecting it will have to pay property taxes out of the Fund on the owner’s behalf for a much longer time.”
Allodial Title, True Property Rights, have Never Really Existed in The United States for Most People
Most people throughout human history have not owned real property. They did not, and have not had, real property rights. It is true that the United States granted allodial title by calling their grants “allodial title.” This was superficial though. In actuality, the previous holders of tenant land under feudal England were removed, and replaced by state, and local government holdings of those titles after the American Revolution. These titles were still subject to property taxes to the government instead of feudal lords. So, really, this was not true allodial title. It was only allodial from the point of view of the new government in relation to previous feudal land owners, i.e. the king and his men.
Allodial Title, True Property Rights, Theory Versus Reality
In a way, Allodial Title is patriot mythology. In legal theory it is something that exists. However, in practice, it is nearly impossible for the average person to get their hands on it. American’s should demand Allodial title, and without having to pay a lifetime worth of taxes to obtain it. In other words, all 50 States should fight to actually have Allodial Title that is obtainable for the average middle class person. This is how we will have real property rights, and a truly free country. I know people will argue about how this money is needed to run a local government. I think there are other ways to raise revenue without risking people’s property rights. You should be able to own land, and a house outright without risk of losing it. If you go through a bank and have a mortgage with a lien that is up to you. At least you only have one risk of losing it rather than two. I would be okay with increased sales taxes. Of course, this assumes that the money is needed to begin with which is a whole separate argument on whether government should be involved with the things they are involved with in the first place.