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Value increases may strain property investors

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Guest | 29 Oct 2012, 04:49 PM Agree 0
  • Carlos Henao | 29 Oct 2012, 10:52 PM Agree 0
    As a municipal property tax consultant, I can tell you that increase in average home values have nothing whatsoever with increase in tax bills. The two are not related in any way. City and town councils decide how much they will need based on their annual budget. They base tax rates off that.

    On fact it's entirely possible for assessed home values to increase while rates decrease, or vice versa.
  • Martink | 30 Oct 2012, 07:37 PM Agree 0
    Carlos, this is nonsense, city coffers are always looking for more money, not less.

    It may not be direct relationship between assessed value and equal rise exactly in taxes but if city rate stays the same as today, it automatically means more taxes to pay since house rate (value) is up. And the whole idea that city would not take more given a chance like this is nonsense. Taxes will be higher. You can bank on it.
  • DB | 30 Oct 2012, 07:37 PM Agree 0

    It's all up to the mill rates that city councils everywhere base their needs for their budgets.

    Some will be greedy if they have been hit by service cutbacks for aging infrastructure, civil servant costs, pensions etc because they will leave the mill rate alone and let the government do it for them.

    Small towns and cities are very restricted due to lower paying and few high paying jobs.

    My suggestion is buy off the unions for benefits and let them take care of their own. Then its strictly wages. Police, firemen and municipal employees never take cutbacks and hold cities hostage. The only opportunity the cities have is to reduce staffing. So much for "unions" that benefits all its members. Low man gets cut to save the hierachy.
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