During the inflation of the bubble, local assessors were quick to inflate property taxes and corresponding revenue to pad the government coffers with money based off illusionary gains in real estate wealth.
Now that the party is over, something tells me that local counties won't be quite as quick or generous with the tax reductions, based on assessed value, during the bust as they were with raising them during the boom.
Millions of Americans will be receiving property tax bills in the next 2-3 months that will be grossly inflated and not reflecting the true equalized value of their house. There is a board of review held after the assessments are mailed where property owners can argue the taxable value.
I know that this winter I will be at my local review board, armed with a list of comparable sales, real estate listings, and other evidence that my house is now worth atleast 10% less than it was last year. I will be appealing the assessed value of my home. If I am successful, that of course means 10% less revenue for the county.
Will the township respond by raising mileage rates in an attempt to compensate for lost income due to crashing housing prices?
The housing bubble has far reaching ramifications, and this crisis will be felt by everyone come tax time.
Sunday, November 18, 2007
Posted by Chris at 9:42 PM