State governments cheer: tax revenue continues to increase
Bucking all logic, property taxes collected by US states and municipalities increased for the year ending June 30, 2006 2007.
Property taxes keep rising, even as home values in some markets have slumped.
Property tax collections by states and localities hit $388.5 billion for the 12 months ending in June. That was an increase of 6.8 percent from same period a year ago.
Yet housing prices are off. Nationwide, the median price of existing homes in September was down 4.9 percent from 2006, according to the Standard & Poor’s/Case-Shiller home price index.
Actually, it makes sense that property tax revenue has continued to rise. As the article points out, most properties’ assessments are calculated using data from the prior year, so any drops in value due to a slowing real estate market and US economy has have not been taken into account.
For example, your City of Boston 2007-2008 property tax bill for the fiscal year ending June 30, 2008 was calculated using the estimated value of your home on January 1, 2007.
Meaning, the city estimated the value of your home based on what it was worth, almost a year ago.
Which is good. Prices have continued to rise within the city of Boston, right?
It’s as if the city’s doing you a favor! HA!
(** If you think your fiscal year 2008 property tax bill is too high, you have only a short period of time to contest it. You have to wait until the 3rd-quarter tax bills are sent out, in late December, but then have your abatement request completed and submitted by February 1, 2008. Miss the deadline and you’re out of luck!)
roperty Taxes Rising Despite Falling Values – By Paul Katzeff, Investors Business Daily, by way of Realtor.org