Callous, uncaring death tax's impact

Gary Walker and his family built a 60,000-acre cattle ranch, and he stands to lose it all to the death tax. Walker’s Turkey Creek Ranch borders Fort Carson in Pueblo County. Part of the ranch is under conservation easement bought by Fort Carson as a buffer. Like most family ranches, Walker’s is partly owned by his aging parents. After they die, Walker will owe a death tax calculated on their share of ownership. Estate tax is calculated on the “fair market value” of the item at the time the owner died. Walker’s land, like many rural properties, is being appraised at an inflated value so the government can collect more death tax. An ordinary land transaction involves a willing buyer and seller, each having an interest in the valuation of the property. The owner wants the highest possible appraisal; the buyer wants the lowest. The rational compromise, long established by the appraisal industry, has been to assign the fair market value based on the “highest and best use” that’s legally permissible. When it comes to the estate tax, the system of appraisal is grossly unfair. It typically involves an owner with no desire to sell or develop the property, and motivation to see the property valued as low as possible. The federal government has all the power and wants the property valued as high as possible in order to collect more taxes. The government additionally controls the appraisal process and assumes the right to dictate to the property owner what the land is worth. This fundamentally transforms the buyer/seller relationship into a coercive, involuntary transaction that’s rife with conflict of interest...more