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View Diary: Morning Feature: Low Taxes: Pennywise and Pound Foolish? (155 comments)

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  •  Most excellent diary, gulfgal :) (10+ / 0-)

    Speaking as one who lives in FL, I was very upset by the last property tax reduction initiative.  The battle was led by folks who got "sticker shock" when they purchased a new home.  Previously, a home's assessed value for tax purposes could increase only $5000/year as long as the same person owned it.  That meant that when someone purchased a home that had been owned for 10-20 years, the assessed property value leapt to the new value, and in many cases the leap was breathtaking, owing to the housing bubble.

    I understand why people became upset, but that standard of leaping to the new assessed value based on the sale price is common across the country.  It's one way assessors keep up with increasing property values without unduly burdening a home owner with huge leaps every single year.

    Now that the bubble is burst, the folly of the new law has become even more painfully apparent.  The assessed value of the house I bought ten years ago is now less than when I bought it.  Hence, the property tax income stream has been cut significantly... much more than the "average of $240."  All around me, houses that sold during the bubble are seeing the same decrease in property tax payments.

    I think this will have an even more devastating effect on the tax stream than in many older, settled neighborhoods, where the values never became inflated because the houses never changed hands.

    Of course, in the midst of the current economic crisis, paying taxes is harder than ever, so cutting our own (future) throats will probably be the order of the day.

    Huuugggs and thanks for a wonderful diary!

    The austerity you see around you covers the richness of life like a veil -- Anonymous

    by winterbanyan on Tue May 26, 2009 at 05:23:00 AM PDT

    [ Parent ]

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