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If home values decline by 50%. So do property tax revenues. You’d have stated needing to layoff a large portion of their police and education staff.
by bushbaba 4y ago
If home values decline by 50%. So do property tax revenues. You’d have stated needing to layoff a large portion of their police and education staff.
- mindslight 4y agoThat's not at all how real estate valuations work in my experience. In times of asset inflation, they lag to cut homeowners a break. So much so that other tax authorities outright reject using municipal valuations on their filings. And municipal valuations never go down, barring someone paying for an independent appraisal and going through the abatement process. If real estate values corrected by 50%, then the people who really complained might be able to get their taxes reduced by 10%. But even that's doubtful.
- lotsofpulp 4y agoThe government can also just increase property tax rates if property values go down. Instead of 0.75%, make it 1%, or 2%.
- bushbaba 4y agoThey can’t in California. Not without voter approval. Same is true in many states.
- nisegami 4y agoAnother win for land-value taxes over property taxes.
- not_the_fda 4y agoThats not how property taxes usually work. Most municipalities set a millage rate based on how much revenue they want. If property values decrease, the millage rate goes up. If all property went down 30% the millage rate is adjusted accordingly to hit the revenue target.