As Property Values Go Down…Will The Property Taxes Follow?
July 29th, 2009 categories: General RE Info, Market Update, Tips For Buyers
The Answers is… Not Necessarily; Someone Has to Pay the Bills.
As an illustration, let me play with some numbers. Let’s assume that the Municipality needs $1,000.00 to operate and generates revenues of $400.00 from other sources. That balance of $ 600.00 needs to be collected through property taxes. Even if the value of the properties change the same amount needs to be collected. It means that if values go down each property will pay a higher mill rate.
The only way to reduce Property Taxes is by lowering expenses or increase other sources of income. The cities have been fighting the reduction of those expenses for a long time stating that the services they provide would have to be cut; specially those related to security. Some of them have pension plans for their employers that are unsustainable and can’t be changed. Individuals can get some savings by filing for Homestead and other Exemptions (only applicable to US Residents).
Our Property Appraiser in Broward County uses distress sales to asses values, some other counties are not. You can go to www.bcpa.net and find out the estimated taxes for 2009. In Dade County, for example, they are not being used.
SOMETHING NEW ABOUT OUR 2009 REAL PROPERTY ASSESSMENTS
“Starting with the new 2009 real property assessments, our residential land values and improvement (building) values are correctly apportioned. (…) Using mass-appraisal methods, we equalized land values this year by neighborhood — not just by subdivision within a neighborhood. This means the square-foot land value for dry lots in a neighborhood should be the same as for other comparable dry lots in the same area … lots along a golf course will be valued the same as other lots along the same golf course … waterfront lots will be valued the same as other similar waterfront lots (and point lots valued the same as other nearby point lots) … and so on. If you believe we incorrectly paired your lot (versus your neighbor’s land value), please contact Land Section Supervisor Mark Taravella.”
Source: www.bcpa.net
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