property tax oblivion

jeffk · 11-29-2007, 10:59 AM

I agree the first line of defense against paying higher taxes is controlling spending.

However, you have to understand how property taxes work. If your property value drops 4% and everyone else's property value drops 7%, congratulations you win higher taxes as "compared to everyone else". This can often be the case in a vacation area where expensive second home prices may be hit harder than smaller residential home prices. This effectively shifts some of the tax burden to the residential homes which now, comparatively, are worth more. The tax follows the comparative value. Even if spending is absolutely flat

the amount of tax paid by any one individual can change based on the comparitive value of their property.

11-29-2007, 10:59 AM	#30
jeffk Senior Member Join Date: Feb 2004 Location: Center Harbor Posts: 1,173 Thanks: 207 Thanked 437 Times in 253 Posts	Property value down as "compared to what" I agree the first line of defense against paying higher taxes is controlling spending. However, you have to understand how property taxes work. If your property value drops 4% and everyone else's property value drops 7%, congratulations you win higher taxes as "compared to everyone else". This can often be the case in a vacation area where expensive second home prices may be hit harder than smaller residential home prices. This effectively shifts some of the tax burden to the residential homes which now, comparatively, are worth more. The tax follows the comparative value. Even if spending is absolutely flat the amount of tax paid by any one individual can change based on the comparitive value of their property.