Balance

Some people take statements about taxes to be right-wing or Libertarian. In fact, one should be able to to see facts for what they are, and not try to assign them to “right-wing, left-wing, or esoteric nut-job”.

I truly believe in freedom of choice, freedom of expression, freedom of pursuit of anything that doesn’t harm anyone else.

I am a liberal.

I also do not trust Democrats.

I also do not trust Republicans.

I generally find it hard to trust anyone who wants to lead me and claim authority over me.

What I do trust is people that I come into contact with who I perceive to be genuine and honest. These are the people I want to invest in.

It is natural and acceptable to desire to be left alone to work out our own fortune. It is also natural and acceptable to want to help others when you are in a position to offer something.

ANYtime you are forced to sign on to anything, accept a benefit, or be stopped in your private affairs to answer questions when there is no probable cause (party claiming injury by you), your rights are infringed upon and calling America a free country becomes a joke.

Transparency is something we have to force the government into practicing.

There is a special process to gain access to the truth from government– a Freedom of Information Act (FOIA) request.  You want the truth?  Oh, that’s a special situation. Fill this out and we’ll get back to you.

I do believe in government– generally to protect us from the greed of others. I can’t see a more important function.

The government should provide opportunities for us, and choices.  We, in turn, should have open access to all of the implications and details of that contract.

The government should truly be our servant, and have NO OTHER GOAL.  Putting us below it has gotten us to this point, one of the lowest points in history if we tell the truth. 

 

 

 

 

 

 

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We are being screwed.

How does the information that I’ve been mining help us?

I am constantly trying to grasp the big picture as new information keeps being put into place.

A general statement one could make is “Corporate America/big business constantly shifts the burden onto the people while minimizing the amount of benefit received by the people.”

Corporate America strives to pay less tax upon their gains, while we treat the money we are using to scrape by as profit— the real meaning of income.

American culture is tweaked and subverted to make the rich into demi-gods, and to make the people think they will someday be demi-gods as well.  “Be patriotic– don’t let the government take the money from businessmen!”

When you see what is really happening, you can only feel disgust.

“Businessmen” get rich through the privileged activities of acting through a corporation and gaining from investment of money. Both of those things are sanctioned/enabled by the government, and are TAXABLE.  This is, in fact, the basis of our internal revenue system; once a business is INCORPORATED, it has been “brought into the body”. We have seen references to “body politic” and “body corporate”.  To receive that benefit is to fall under the jurisdiction of the government.

These corporations’ activities, arising from privilege, are taxable.

Our activities, such as earning a living, and taking shelter in a house are done as a matter of right.

By claiming our house and land to be real property, we are declaring it to be owned as a privilege and used for business purposes, and not a permanent, private living space.

By claiming our pay to be income, we are submitting the figure as profit, which purports to be gained through the privilege of “employment”, defined in Title 26 as working for the federal government.

Meanwhile, the real beneficiaries of privilege receive tax cuts, subsidies, what-have-you.

Friends may talk about moving to another country to escape the greed that is so entrenched in American leadership. Here is the ideal scenario: the burden gets shifted back upon big business (whose leaders make more money than even they know what to do with, and seem addicted to acquisition) to pay a healthy tax on their gains, because they are making amounts above and beyond what would be deemed proportionate to their time and investment.

People NOT involved in any privileged activity (living in a house, working for pay) do NOT pay a tax on those activities. Activity is indeed what is being taxed when an income tax or property tax is enforced… but only “activity-on-paper”.

The authorities know that we are not all using our homes and land for business; they also know that we are not all receiving hourly pay via connection with government.

However, legally, they have a leg to stand on because we offer them the presumption that these things are happening. We do not rebut their assertion that we are living on “real property”, or that we are “employees” receiving “income”.

If my use the terms “employment” and “income” are not clear to you, and their meanings for you are still “working” and “pay”, respectively, you need to read “Cracking the Code” by Pete Hendrickson. While I do not espouse everything the man says (and wouldn’t it be strange if I did?),  he has done a remarkable amount of research on the income tax and all of the court decisions and history surrounding it. I read it 6 times to soak it up, and would probably benefit from another read.

Do we need to stop receiving benefit from the government?

Hell no. we need to know which activities are privileged and which are not.

Back to that “ideal scenario” I mentioned: you are working for pay, getting paid generally what your time seems to be worth, are not in debt as a matter of course, and have some money left over as a cushion. You invest that money in some sort of stock thingy I know little about. That is a privileged activity, and you will pay tax on that. Essentially, you are making money off extra money you do not absolutely need. This will set you up in later years during an emergency or retirement/unforeseen circumstances.

What I am getting at is that, because the Federal and local governments can only tax certain activities under their jurisdictions, we can all be very clear on whether we are involved in those activities.

As it is, we the people are paying an “unfair share” of the budgetary burden; we are paying it due to having the wool pulled over our eyes. Explicit, above-board application for benefits when we know exactly what we are giving up for what we are getting, is the only future path that is acceptable for us. To obfuscate this relationship gives power to those in charge of the coffers, essentially making the money trail untraceable, or at least untraced.

The burden keeps getting heavier upon us, while obscene dollar amounts are being hoarded by those bent on having as much wealth as possible.

It makes me sad, and then angry when average/below-average workers support the idea that “big business should not be taxed”, and that to do so is bad for the economy. The opposite is true. You do not have a right to exploit the system and not pay a tax upon that. You do have a right NOT to be in the system. If you can become rich through private endeavors, without corporate powers and conveniences, more power to you. None of the rich are doing that.

I have tried before now to minimize the editorial aspect of this blog, but the more I read and research, the more the implications become central to my mind.  We are being screwed.

The True Meaning of “Corporate America”.

I want to examine the assertions made by many that the government is a  corporation.

For starters, what is your local government? Is it simply a group of employees of the people operating in the interest of those people?

Glossary words are indicated with an asterisk* and found at the end of this entry.

Let’s look at the statutes again:

Chapter 153A.

Counties.

Article 1.

Definitions and Statutory Construction.

§ 153A-1.  Definitions.


(1)        “City” means a city as defined by G.S. 160A-1(2), except that it does not include a city that, without regard to its date of incorporation, would be disqualified from receiving gasoline tax allocations by G.S. 136-41.2(a).

(3)        “County” means any one of the counties listed in G.S. 153A-10.

(4)        “General law” means an act of the General Assembly that applies to all units of local government, to all counties, to all counties within a class defined by population or other criteria, to all cities, or to all cities within a class defined by population or other criteria, including a law that meets the foregoing”

The definitions of city and county both refer to another section. Very poor construction, if clarity is the goal.

Also, I emphasize that a general law applies to all units of local government (cities/towns, etc.). Never does it say that the general law (an act of the general assembly) applies to the people– the people are not entities with limited rights.  Remember, the inhabitants of the county are mere “mini-me”s of the county with the same rights. This clearly spells out the jurisdiction of the General Assembly.

Why not just state what a city is? Okay, I’ll go over to that other section:

“Chapter 160A

Cities and Towns.

Article 1.

Definitions and Statutory Construction.

§ 160A-1.  Application and meaning of terms.


(2)        “City” means a municipal corporation organized under the laws of this State for the better government of the people within its jurisdiction and having the powers, duties, privileges, and immunities conferred by law on cities, towns, and villages.  The term “city” does not include counties or municipal corporations organized for a special purpose.  “City” is interchangeable with the terms “town” and “village,” is used throughout this Chapter in preference to those terms, and shall mean any city as defined in this subdivision without regard to the terminology employed in charters, local acts, other portions of the General Statutes, or local customary usage. 

(4)        “General law” means an act of the General Assembly applying to all units of local government, to all cities, or to all cities within a class defined by population or other criteria, including a law that meets the foregoing standards but contains a clause or section exempting from its effect one or more cities or all cities in one or more counties.

(6)        “Mayor” means the chief executive officer of a city by whatever title known.

A mayor is just a CEO? Hmmm… so now we can see that a city is a municipal corporation.

Municipal corporation. A legal institution formed by charter from sovereign (i.e. state) power erecting* a populous community of prescribed area into a body politic and corporate with corporate name and con­tinuous succession and for the purpose and with the authority of subordinate self-government and im­provement and local administration of affairs of state. A body corporate consisting of the inhabitants* of a designated area created by the legislature with or without the consent of such inhabitants for govern­mental purposes, possessing local legislative and ad­ministrative power, also power to exercise within such area so much of the administrative power of the state as may be delegated to it and possessing limited capacity to own and hold property and to act in purveyance of public conveniences.”

By the way– do you like the sound of that– “with or without the consent of… inhabitants”? Does that sound like an inhabitant is someone served by the government, or someone controlled by it? Do you wish to be an inhabitant?

“Chapter 153A.

Counties.

Article 2.

Corporate Powers.

§ 153A-11.  Corporate powers.

The inhabitants of each county are a body politic and corporate under the name specified in the act creating the county. Under that name they are vested with all the property and rights of property belonging to the corporation; have perpetual succession; may sue and be sued; may contract and be contracted with; may acquire and hold any property and rights of property, real and personal, that may be devised, sold, or in any manner conveyed, dedicated to, or otherwise acquired by the corporation, and from time to time may hold, invest, sell, or dispose of the property and rights of property; may have a common seal and alter and renew it at will; and have and may exercise in conformity with the laws of this State county powers, rights, duties, functions, privileges, and immunities of every name and nature. “

Are you reading it right?

Essentially, being an inhabitant of the county means you are a PART of that county (legal entity created by the state), with no more rights than the county has. This is important because…

Remember the aforementioned definition of “Municipal corporation”, a phrase describing a city in North Carolina?

“A body corporate consisting of the inhabitants of a designated area created by the legislature with or without the consent of such inhabitants for govern­mental purposes, possessing local legislative and ad­ministrative power, also power to exercise within such area so much of the administrative power of the state as may be delegated to it and possessing limited capacity to own and hold property and to act in purveyance of public conveniences.”

How can you be a part of that body corporate, and not also have your rights limited? It stands to reason that if something can be done with or without your consent, you do not have to be a part of it or subject to it. This is recognized in state and US Constitutions.

How can you ever state that you are from _______ County and not be identifying yourself as an entity with limited rights? You would have to be declaring yourself an inhabitant of that county.

Realize this: when referring to “county”, we are not talking about a geographical area that we think of as a county. We are talking about wordplay, and legal status, and whether your rights are given up for the “privilege” of being part of the body politic and corporate.

In any given situation, you don’t have to claim to be that “inhabitant”.

We wonder why our government favors corporations so heavily… the county or city that claims jurisdiction over you is a creature of the state, of the same ilk as any other corporation in that state.

Essentially, you are considered a citizen of the county or city, without that term being used. If they did use it, you would be a citizen of county, state and federal governments, and might start to experience discomfort from all of those connections/ claims to you.

Why is it bad to be considered a citizen? It doesn’t have to be- but in every definition I can find, citizenship indicates a lowered status, and fewer rights. Those rights are privileges and thus revocable/shifting.

As usual, there are so many layers and branches I could explore. I hope you get something from this, and that I may have helped clarify/bring into focus that mundane thing that is your county or city.

GLOSSARY terms (Black’s Law Dictionary, 5th Edition):

(Quiet, Beavis…)

Erect. In England, one of the formal words of incorpo­ration in royal charters. “We do incorporate, erect, ordain, name, constitute, and    establish.”  “Con­struct” is synonymous with “erect”.
Erection. Raising up; building; a completed building; to build; construct; set up. There is a distinction between “erection” and maintenance. Turturro v. Calder, 307 Mass. 159, 29 N.E.2d 744, 746.

Inhabitant. One who resides actually and permanently in a given place, and has his domicile there. Ex parte Shaw, 145 U.S. 444, 12 S.Ct. 935, 36 L.Ed. 768.
The words “inhabitant,” “citizen,” and “resident,” as employed in different constitutions to define the qualifications of electors, means substantially the same thing; and, in general, one is an inhabitant, resident, or citizen at the place where he has his domicile or home. But the terms “resident” and “inhabitant” have also been held not synonymous, the latter implying a more fixed and permanent abode than the former, and importing privileges and duties to which a mere resident would not be subject. A corporation can be an inhabitant only in the state of its incorporation.

(If you have been made subject to duties, that is a contractual connection. No law can require to take any action if you have not committed a crime.–Ed.)

Covering the Chink in the Armor: More on the True Nature of the Property Tax

This includes some review, to drive these principles home and further clarify.

__________________________________________

In the previous posts, I have expected you to swallow that your property tax is being imposed incorrectly– fraudulently, to tell the truth. Do you believe it?

Back to the Statutes

The “exemptions and exclusions” clause, and related section on remedies, states that non-business property is personal property not used in the pursuit of profitable enterprise. Throughout “105 Taxation”, personal property is referred to as “anything that’s not real property”, and uses tricky methods to paint the picture of sharply defined classes of property according to whether something is moving or not. Okay. Something is taxable if it cannot be moved? An odd basis and justification for taxing something, isn’t it?

The real deciding factor on whether something is taxable is whether or not it is used in some privileged activity. Personal property, in its true sense, is anything that can be owned. Real property is a category of personal property used in a commercial fashion. That is the reason for that misleading “definition” of Real Property:

“Article 11 – Short Title, Purpose, and Definitions.

§ 105-273.  Definitions.

The following definitions apply in this Subchapter:

(13)      Real property, real estate, or land. – Any of the following:

a.         The land itself.

b.         Buildings, structures, improvements, or permanent fixtures on land.

c.         All rights and privileges belonging or in any way appertaining to the property.

Notice “Any of the following–“. A definition is not supposed to list possibilities of what a term could mean. Doing this leaves the reader to think that the listed items are always real property. From a legal/statutory construction standpoint, it is really only saying that those items CAN be Real Property.

The real determining factor of whether something can be taxed is HOW IT IS USED. If you are using your home as a matter of right, that is not a taxable use. Remember, rights and privileges are not the same. Privilege is a subset of rights, which are conditional and can be taken away. Hardly inalienable. True rights, human rights, cannot be taken away unless you allow it. You and I are both responsible for clearly establishing which rights those are, on an ongoing basis.

“§ 105-275.  Property classified and excluded from the tax base.

The following classes of property are designated special classes under Article V, Sec. 2(2), of the North Carolina Constitution and are excluded from tax:

(16)      Non-business Property. – As used in this subdivision, the term “non-business property” means personal property that is used by the owner of the property for a purpose other than the production of income and is not used in connection with a business. The term includes household furnishings, clothing, pets, lawn tools, and lawn equipment. The term does not include motor vehicles, mobile homes, aircraft, watercraft, or engines for watercraft.”

When you read this, you my automatically put “Real Estate” and “Real Property” out of the realm of possibility in your mind. Don’t do it. That was the intent of the ones who wrote this– to be legal only in a very technical sense when it is analyzed closely by an experienced person. It is easily construed wrongly by the average man and woman.

The assumption is:

They are only speaking of movable objects, not houses.

That is not true, and here’s why.  If personal property, in the class of movable objects, is not taxable when not used in a business effort, why would a house be taxable if not used for business, but to live one’s private life in? Think about that for a few minutes.

Then read this:

Black’s Law, 5th Edition:

“Personal property. In broad and general sense, everything that is the subject of ownership, not com­ ing under denomination of real estate. A right or interest in things personal, or right or interest less than a freehold in realty, or any right or interest which one has in things movable.
Generally, all property other than real estate.    It is sometimes designated as personalty when real estate is termed realty.    Personal property also can refer to property which is not used in a taxpayer’s trade or business or held for the production or collection of income.    When used in this sense, personal property could include both realty (e.g., a personal residence) and personalty (e.g., personal effects such as clothing and furniture).”

How does that grab you? This non-business property can be your house. You need to establish that with the county, who is operating under the presumption that your house and land are used in business. Why? That presumption makes them money. Rather dishonest, I would say.

However, a clear method for establishing the facts is indicated in the “Taxation” title;

“Article 27 – Refunds and Remedies.

§ 105-381.  Taxpayer’s remedies.

(a)        Statement of Defense. – Any taxpayer asserting a valid defense to the enforcement of the collection of a tax assessed upon his property shall proceed as hereinafter provided.

(1)        For the purpose of this subsection, a valid defense shall include the following:

a.         A tax imposed through clerical error;

b.         An illegal tax;

c.         A tax levied for an illegal purpose.

(2)        If a tax has not been paid, the taxpayer may make a demand for the release of the tax claim by submitting to the governing body of the taxing unit a written statement of his defense to payment or enforcement of the tax and a request for release of the tax at any time prior to payment of the tax.

(3)        If a tax has been paid, the taxpayer, at any time within five years after said tax first became due or within six months from the date of payment of such tax, whichever is the later date, may make a demand for a refund of the tax paid by submitting to the governing body of the taxing unit a written statement of his defense and a request for refund thereof.

…”

There you have it.

An assertion, of course is a statement that is made but not proven.

§ 105-282.1. Applications for property tax exemption or exclusion; annual review of property exempted or excluded from property tax.

(a)        Application. – Every owner of property claiming exemption or exclusion from property taxes under the provisions of this Subchapter has the burden of establishing that the property is entitled to it. If the property for which the exemption or exclusion is claimed is appraised by the Department of Revenue, the application shall be filed with the Department. Otherwise, the application shall be filed with the assessor of the county in which the property is situated. An application must contain a complete and accurate statement of the facts that entitle the property to the exemption or exclusion and must indicate the municipality, if any, in which the property is located. Each application filed with the Department of Revenue or an assessor shall be submitted on a form approved by the Department. Application forms shall be made available by the assessor and the Department, as appropriate.

Except as provided below, an owner claiming an exemption or exclusion from property taxes must file an application for the exemption or exclusion annually during the listing period.

(1)        No application required. – Owners of the following exempt or excluded property do not need to file an application for the exemption or exclusion to be entitled to receive it:

a.         Property exempt from taxation under G.S. 105-278.1 or G.S. 105-278.2.

b.         Special classes of property excluded from taxation under G.S. 105-275(15), (16), (26), (31), (32a), (33), (34), (37), (40), (42), or (44).”

So this class of non-business property as mentioned in 16 does not require an application, merely an assertion and demand establishing your right to use it free of taxation. Is the law saying you have to prove the land/house is not taxable? No, just establish that it is such.

Good ol’ Black’s Law 5th again:

Establish.    This word occurs frequently in the Constitu­tion of the United States, and it is there used in different    meanings:  ( 1 )  To settle firmly, to fix unal­terably; as to establish justice, which is the avowed object of the Constitution. (2) To make or form; as to establish uniform laws governing naturalization or bankruptcy. (3) To found, to create, to regulate; as: “Congress shall have power to establish post-offices.” (4) To found, recognize, confirm, or admit; as: “Con­ gress shall make no law respecting an establishment of religion.” See Establishment clause. (5) To cre­ate, to ratify, or confirm, as: “We, the people . . . do ordain and establish this Constitution.”    Ware v. U. S., 71 U.S. (4 Wall.) 617, 18 L.Ed. 389.

To settle, make or fix firmly; place on a permanent footing; found; create; put beyond doubt or dispute; prove; convince. Wells Lamont Corp. v. Bowles, Em.App., 149 F.2d 364, 366. To enact permanently. To bring about or into existence.”

A firm statement that your property is non-business property is sufficient. It’s all in the law.

Furthermore, this is the only place where a duty to pay the tax is mentioned:

“Article 28 – Special Duties to Pay Taxes.

§ 105-383. Fiduciaries to pay taxes.

§ 105-384. Duties and liabilities of life tenant.

§ 105-385. Duty to pay taxes on real property; judicial sales; sales under powers; governmental purchasers.

§ 105-386. Tax paid by holder of lien; remedy.

if you’re interested, read within the links. “Special duties” means “Specific duties”, not some rare or unusual situation. It is specifying who has the duty. Please find a section that indicates someone living in a house having a duty to pay tax on it. I have looked and looked. I know you won’t find it.

Not that anyone reads my blog… yet.

I would like to make these posts short and sweet, believe me, but if I only say enough for it to make sense to me, it is pointless to write. I want to bring others, and myself, into a better understanding of the law as pertains to the average man and woman.  The “common understanding” of laws is a MIS-understanding in most cases, even by those imposing the laws.

Let’s all please put aside political differences and stand together against the corporate authority finding any way it can to increase the bottom line by extracting ever more energy from us. Is your energy valuable? is it also limitless? You have the right to use it for yourself. Right now, it is being sucked away to enrich the rich. Leaving minimum wage low is a hidden tax. Have more respect for the people around you than the soulless, fictional corporate authority.

Why I am I using that term “corporate authority“? I guess that’s my next area to tackle in umpteen entries.

Until then,

Peace.

Your County’s Dirty Little Secret, Part 3/3

You may now believe that non-business property is non-taxable. I have just shown you that in part 2. If you are unsure, go to the NC General Statutes and look for yourself. See the context that these all come from. It might be worth your time to save hundreds of dollars per year or so on property tax.

So, if you are armed with that knowledge that your non-business property is not taxable, and it is BEING taxed, what do you do? Make a phone call?

As is almost always the case, there are remedies for you written into the law. Check this out:

(note: “remedies” and “rights” are terms used interchangeably).

“Article 27.

Refunds and Remedies.

§ 105-380.  No taxes to be released, refunded, or compromised.

(a)        The governing body of a taxing unit is prohibited from releasing, refunding, or compromising all or any portion of the taxes levied against any property within its jurisdiction except as expressly provided in this Subchapter.

§ 105-381.  Taxpayer’s remedies.

(a)        Statement of Defense. – Any taxpayer asserting a valid defense to the enforcement of the collection of a tax assessed upon his property shall proceed as hereinafter provided.

(1)        For the purpose of this subsection, a valid defense shall include the following:

a.         A tax imposed through clerical error;

b.         An illegal tax;

c.         A tax levied for an illegal purpose.

(2)        If a tax has not been paid, the taxpayer may make a demand for the release of the tax claim by submitting to the governing body of the taxing unit a written statement of his defense to payment or enforcement of the tax and a request for release of the tax at any time prior to payment of the tax.

(3)        If a tax has been paid, the taxpayer, at any time within five years after said tax first became due or within six months from the date of payment of such tax, whichever is the later date, may make a demand for a refund of the tax paid by submitting to the governing body of the taxing unit a written statement of his defense and a request for refund thereof.

(b)        Action of Governing Body. – Upon receiving a taxpayer’s written statement of defense and request for release or refund, the governing body of the taxing unit shall within 90 days after receipt of such request determine whether the taxpayer has a valid defense to the tax imposed or any part thereof and shall either release or refund that portion of the amount that is determined to be in excess of the correct tax liability or notify the taxpayer in writing that no release or refund will be made. The governing body may, by resolution, delegate its authority to determine requests for a release or refund of tax of less than one hundred dollars ($100.00) to the finance officer, manager, or attorney of the taxing unit. A finance officer, manager, or attorney to whom this authority is delegated shall monthly report to the governing body the actions taken by him on requests for release or refund. All actions taken by the governing body or finance officer, manager, or attorney on requests for release or refund shall be recorded in the minutes of the governing body. If a release is granted or refund made, the tax collector shall be credited with the amount released or refunded in his annual settlement.

(c)        Suit for Recovery of Property Taxes. –

(1)        Request for Release before Payment. – If within 90 days after receiving a taxpayer’s request for release of an unpaid tax claim under (a) above, the governing body of the taxing unit has failed to grant the release, has notified the taxpayer that no release will be granted, or has taken no action on the request, the taxpayer shall pay the tax. He may then within three years from the date of payment bring a civil action against the taxing unit for the amount claimed.

(2)        Request for Refund. – If within 90 days after receiving a taxpayer’s request for refund under (a) above, the governing body has failed to refund the full amount requested by the taxpayer, has notified the taxpayer that no refund will be made, or has taken no action on the request, the taxpayer may bring a civil action against the taxing unit for the amount claimed. Such action may be brought at any time within three years from the expiration of the period in which the governing body is required to act.

(d)        Civil Actions. – Civil actions brought pursuant to subsection (c) above shall be brought in the appropriate division of the general court of justice of the county in which the taxing unit is located. If, upon the trial, it is determined that the tax or any part of it was illegal or levied for an illegal purpose, or excessive as the result of a clerical error, judgment shall be rendered therefor with interest thereon at six percent (6%) per annum, plus costs, and the judgment shall be collected as in other civil actions.”

If your non-business property is being taxed, that is ILLEGAL. You have the right to shelter and ownership of a home.

Notice the words “assert” and “demand” and how a “valid defense” is clearly defined.

The word “prove” is not used, only “assert”. The taxing authority knows whether you are running a licensed business out of that building, or living there as a matter of RIGHT. Assert that right. They will surely see that you have a “valid defense”.

On the NC Dept. of Revenue’s own website, there are pdfs of presentations made to tax professionals/ assessors. One presentation, in reference to these § 105-381 remedies/exclusions, says that the “burden of establishing” an exclusion lies upon the homeowner. Once again, the word “prove” is sidestepped. We have already read IN THE LAW that one must ASSERT the exclusion. That it how it is established.

It is also noted in official literature that no application is needed for an exclusion; only for an exemption.

The Homestead Exemption is in the law as a Red Herring to have you read it and say to yourself “Awwww– that’s not me. Oh well– it was worth a try.” That exemption must be applied for. Essential, an application would be saying “This is taxable business property, but please make an exception… pretty please?”

The detailing of what must be said to the taxing authority makes the process super simple, and is not an application (request for privilege/special treatment) that could be denied. It is an ASSERTION of EXCLUSION.

It’s all laid out- you only had to look.

These people have taken an oath to the Constitution, but don’t mind at all that you are paying money unnecessarily and that the authorities have you scared into not even questioning the taxation of a right. If you don’t rebut the presumption that your land and home are business property, you must be in agreement, right?

Ha.

Your County’s Dirty Little Secret, Part 2/3

Okay, so now we know that there are types of property excluded from taxation. No surprise– they don’t tax your blankets, for example. You knew that.

Let’s look at the specifics of exclusion, from…

“Article 12.

Property Subject to Taxation.

§ 105-274.  Property subject to taxation.

(a)        All property, real and personal, within the jurisdiction of the State shall be subject to taxation unless it is:

(1)        Excluded from the tax base by a statute of statewide application enacted under the classification power accorded the General Assembly by Article V, § 2(2), of the North Carolina Constitution, or

(2)        Exempted from taxation by the Constitution or by a statute of statewide application enacted under the authority granted the General Assembly by Article V, § 2(3), of the North Carolina Constitution.

§ 105-275.  Property classified and excluded from the tax base.

The following classes of property are designated special classes under Article V, Sec. 2(2), of the North Carolina Constitution and are excluded from tax:

(1)        Repealed by Session Laws 1987, c. 813, s. 5.

(2)        Tangible personal property that has been imported from a foreign country through a North Carolina seaport terminal and which is stored at such a terminal while awaiting further shipment for the first 12 months of such storage. (The purpose of this classification is to encourage the development of the ports of this State.)

(16)      Non-business Property. – As used in this subdivision, the term “non-business property” means personal property that is used by the owner of the property for a purpose other than the production of income and is not used in connection with a business. The term includes household furnishings, clothing, pets, lawn tools, and lawn equipment. The term does not include motor vehicles, mobile homes, aircraft, watercraft, or engines for watercraft.”

Holy crap, that’s a lot to wade through to get to #16. That tells you something right there. Surely, a whole class of property that is excluded by nature should get its own heading, and be clearly stated. Instead, the legislature sees fit to put this in the middle of pages and pages of “Moose Lodge” this and “Elks Lodge” that.

So, non-business property is not taxable. Non-business, therefore, falls outside the scope of the state’s jurisdiction. It is excluded. This is a working definition of the state’s ability to tax- it can tax business property.  You don’t need to ask for an exemption; it is excluded from the start. The definition of business is that it is some activity done by privilege granted by the state. Therefore they can tax it.

Are you living in your house and mowing the lawn as a privilege? Me neither. I have a right to own private property. I will never declare my land to be real estate, real property or anything else that creates a presumption of jurisdiction on the part of the state/county.

“Non-business property… The term does not include motor vehicles, mobile homes, aircraft, watercraft, or engines for watercraft.”

Do you have to be TOLD that your house is non-business property? It certainly doesn’t say that it isn’t included in “non-business property”.

I will leave you to make your own judgment about how many presumptions are wrong, how many people are taxed incorrectly, how many people lose needed money this way, how many take sick/vacation go to court over this, how many lose homes for tax debts… I wouldn’t want to color your opinion.

Continued in part 3…

Your County’s Dirty Little Secret, Part 1/3: Your Land is Not Taxable.

This is a doozy.

I have been looking into the tax laws, scouring as I do to make sense of it all. There is always so much in the laws that is either unspoken or implied. This works to the advantage of those that benefit from taxation or fines.

i will try to break this into digestible sections. It’s a big subject, and there is a lot to grasp that differs from the common belief.

First of all, it is very easy for me to say that private property is not taxable.  I can tell you all sorts of reasons why it shouldn’t be… but I am going to show you exactly why it is not. That’s a little more useful, yes? You probably already know it should not be taxed if you are reading this.

Hopefully, you know that the statutes are not written to be clearly understood on first read. If they were, revenues would drop sharply.

From the NC Constitution:

“ARTICLE V

FINANCE

 Section 1.  No capitation tax to be levied.

No poll or capitation tax shall be levied by the General Assembly or by any county, city or town, or other taxing unit.

 Sec. 2.  State and local taxation.

(1)        Power of taxation.  The power of taxation shall be exercised in a just and equitable manner, for public purposes only, and shall never be surrendered, suspended, or contracted away.

(2)        Classification.  Only the General Assembly shall have the power to classify property for taxation, which power shall be exercised only on a State-wide basis and shall not be delegated.  No class of property shall be taxed except by uniform rule, and every classification shall be made by general law uniformly applicable in every county, city and town, and other unit of local government.”

It is clear that this article relates to the funding of state and local government, as it is called “Finance”.

The main take-away from this is that taxation can only be done under uniform rule. There is no “case-by-case” handling of tax decisions.

The juiciest part of this research has been this:

An exemption is when a subject of taxation, over which the County/state has power to tax, has been granted the status of being non-taxable. This status or rule could be changed at any time through legislation.

An exclusion refers to the subject of ownership being non-taxable by nature.

Over and over, we see that an exclusion merely has to be established; if the property is outside of the scope of what is taxable, there is no application needed. One applies for something when that request can be denied. Make sense?

“Article 12.

Property Subject to Taxation.

§ 105-274.  Property subject to taxation.

(a)        All property, real and personal, within the jurisdiction of the State shall be subject to taxation unless it is:

(1)        Excluded from the tax base by a statute of statewide application enacted under the classification power accorded the General Assembly by Article V, § 2(2), of the North Carolina Constitution, or

(2)        Exempted from taxation by the Constitution or by a statute of statewide application enacted under the authority granted the General Assembly by Article V, § 2(3), of the North Carolina Constitution.”

Continued in part 2…