We received our property tax assessment, have you? Did yours increase even though your property value decreased? Do you understand how this happens?
O.K., here's a course in Property Tax 101.
Let’s say a property is worth $200,000, and property tax is assessed at 1%, so property taxes on this property are $2,000.
Property values drop and it's now worth$180,000; so we would think our new taxes should now be $1,800, yes? Then how come it's assessed at $1,980, a drop of only $20? And we’re also seeing an increase in the school district, etc., so the new taxes are now assessed at $2,120 for an increase. An increase with lower property values.
It's because the government is used to getting its $2000 and in order to continue getting it they play a numbers game. If taxes were assessed at 1% and property values drop, they just adjust the rate, or the 1% to 1.1% for a new property tax of $1,980 and get the same amount as before. It's all in the rates, a numbers game.
You remember the older kid who was always changing the rules in Monopoly so they could win? Same thing here. Let’s end this game so we can lower our taxes. If we must tighten our belt; then why not the City as well?
With your support and my desire to tighten the City's belt, we'll work wonders.
04 August 2009
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Jeff, Your explanation seems very symplistic. If this is the how the property tax scenario works, did our income go down as our property values decreased? I don't think so. Now if cities got an income tax then your example might work. This doesn't look like a "numbers Game" to me but merely of a way to keep police officers on the street instead of hiring and firing based on how much yout home happens to be worth each year. Am I wrong? Thanks.
ReplyDeleteAnonymous,
ReplyDeleteYour correct, it is simplistic. It's 101 and I like simple explanations. Once we get past the details, I find most things are at the core, simple.
Now I'm not quite following your comparison of income taxes to property taxes. Please e-mail me so I have a clear understanding of your question/comment.
If I did understand your comment/question correctly, then here's my thought: income taxes are based on income and will not decrease with a property value decrease, only with a decrease in your income.
Look at your property tax statement; it has a column for last years assessed value and a column for this year’s assessed value. How does it compare? It also states the value of your property, last years and this. How does that compare?
Again, I'm not sure I understood what you wrote so please, contact me so we're both clear on what each other wrote.
As far as a way to keep Law Enforcement employed, that should always be a priority. There are many areas in a City's budget that could be tightened without Law Enforcement suffering.
I'll do some further research and have a more detailed explanation on property tax assessments ready for you when you contact me (this invitation’s good for anyone, not just "anonymous.")
Thanks and best regards,
Jeff
jeffwhiteforcitycouncil@q.com