Residents Question Rising Property Taxes
Home owners across the country are facing higher property taxes at a time when rising food and gas prices, declining home prices, and increased job losses already are taking a toll.
Municipalities are hiking property taxes to balance their budgets, and some local governments are delaying tax cuts that were planned years ago.
The Bureau of Economic Analysis reports a 6.1 percent boost in state and local government spending costs between the 2006 fourth quarter and 2007 fourth quarter, versus a 2.6 percent jump for the national economy.
Property taxes have been raised 9.7 percent in Spring Valley, N.Y., and 4 percent in Arlington County, Va., for instance, and could surge 17 percent in Memphis.
Observers note that municipalities often turn to property taxes when they need more money, with a Census Bureau report indicating that property taxes make up 40 percent of general revenue for local governments on average; but some home owners think officials should cut services instead.
Although home price drops ultimately will lower a home’s assessed value and reduce property tax bills, it takes time for market conditions to affect appraisals. In response, many home owners are requesting reassessments.
Source: The Wall Street Journal, Conor Dougherty (04/25/08)
