4 ms·
Property Taxes aren't terrible for old people. How the mille-rate is set is terrible for old people. A fixed mille-rate results in taxes going up as value goes
by jpollock 4y ago
Property Taxes aren't terrible for old people. How the mille-rate is set is terrible for old people.
A fixed mille-rate results in taxes going up as value goes up. This might be difficult to plan for and manage. However, many cities will simply put a lien on the property and collect when the property is sold/transferred/person dies.
However, this isn't necessarily how things need to be done. In New Zealand, the mille-rate is set to clear the budget. That way, the mille-rate changes with the city's budget, not valuations.
If the city wants to do more, they put it into the budget and say "do you want to pay for it?". Then the mille-rate is changed and everyone's taxes change.
If your house changes value, your taxes don't change! Unless your neighborhood changes its relative valuation, then it might go up or down.
- waterlaw 4y agoCities would stop caring about new residents then (as they've done in Canada.) They mostly cater to the existing residents that own homes and partake in municipal voting. They'll stop creating new housing developments and put massive permitting fees on proposals for new construction.
- jpollock 4y agoNo, it doesn't stop development. New houses increase the value of the land it is sitting on, so the tax from that plot of land will go up. The entire goal should be to encourage residents to partake in municipal voting. That's everyone's responsibility as citizens.