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It probably depends on the jurisdiction, but many places (such as Vancouver) adjust tax rates to meet the budget requirements. So if property values double acro

It probably depends on the jurisdiction, but many places (such as Vancouver) adjust tax rates to meet the budget requirements. So if property values double across the board, tax rates will halve, such that you're paying the same number of dollars as last year. If only your property value doubles, then yes, you'll pay more in property tax than you did last year, and your neighbours less. But anyway, the city certainly doesn't get the value increase back in taxes, and you could presumably sell your property and capture the increase before paying more than a fraction back in tax.

seanmcdirmid 7y ago
Kind of true, but the city will make a grab for that value eventually. Property taxes in Seattle, for example, have been scaling with increase in property prices. California will re-adjust property tax valuations on sale of property (encouraging people not to sell...). Why not pay $500/month in property taxes on that $800k townhome? And really, why would that be unexpected? As the value of the house rises, the services that can be provided increase, often on direct demand of those house owners themselves (they want good/better schools, for example).
- munk-a 7y ago
  I think this is just that terrible America effect, governments are constantly under attack for inefficient spending so they constantly fight to increase revenue sources even when that increase isn't immediately necessary just so they'll have some margin to safely jettison when they come under attack for not spending all the money they're collecting. It's extremely weird, but seems to be accurate, that the US is the only place on earth where people become less trusted via the action of taking on public service responsibility.
  - seanmcdirmid 7y ago
    It really isn't that though, governments never have enough money to provide for all the things that their residents are asking for. It isn't really like "oh, let's grab some more taxes now just in case we need it later", its more like "how do we upgrade from a B-level city to an A-level one?" or worse: "how do we fight off a downgrade from a B-level city to a C-level one?" The American tax burden isn't really that bad compared to everywhere else in the developed world, especially for the facilities that we demand (huge houses, less density, lots of roads, nice schools with football stadiums, etc...).

seanmcdirmid 7y ago

Kind of true, but the city will make a grab for that value eventually. Property taxes in Seattle, for example, have been scaling with increase in property prices. California will re-adjust property tax valuations on sale of property (encouraging people not to sell...). Why not pay $500/month in property taxes on that $800k townhome? And really, why would that be unexpected? As the value of the house rises, the services that can be provided increase, often on direct demand of those house owners themselves (they want good/better schools, for example).

munk-a 7y ago
I think this is just that terrible America effect, governments are constantly under attack for inefficient spending so they constantly fight to increase revenue sources even when that increase isn't immediately necessary just so they'll have some margin to safely jettison when they come under attack for not spending all the money they're collecting. It's extremely weird, but seems to be accurate, that the US is the only place on earth where people become less trusted via the action of taking on public service responsibility.
- seanmcdirmid 7y ago
  It really isn't that though, governments never have enough money to provide for all the things that their residents are asking for. It isn't really like "oh, let's grab some more taxes now just in case we need it later", its more like "how do we upgrade from a B-level city to an A-level one?" or worse: "how do we fight off a downgrade from a B-level city to a C-level one?" The American tax burden isn't really that bad compared to everywhere else in the developed world, especially for the facilities that we demand (huge houses, less density, lots of roads, nice schools with football stadiums, etc...).